Often when it comes time to do rent increases or rent renewals, we immediately see that there is a knee jerk reaction to raising rent. One of the common ones we hear is oh I like those people or those people are a personal friend or family friend and we always go back and say I know my accountant, you think he’s going to give me a break because we’re friends. I know the guy that works for the IRS, are they going to give me a break because we’re friends? No, your increases are happening, your taxes are going up. your utility bills are going up, your insurance bills are going up, and you should always think that your rents are going up because what happens. If you get stuck in this cycle of not raising rents and you have someone that is a multi-year tenant, you’re going to end up or have the opportunity end up with rents that could be several years old. Go for a two to four percent increase to keep up with inflation and to keep pace with that to keep current.
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