If you’re self-managing your own rental property, or your managing agent has said you should consider raising the rent, there’s an important point you should think about before you just see the dollar signs of more rental income being paid into your account. Unless your tenant is leaving, think twice!
When you have a suitable tenant in your property, and there is no sign that they will be leaving any time soon, it is often not worth raising the rent they have to pay. Doing so can be a catalyst for them leaving, and then the amount of income you gained from your rent increase will be eaten up by the costs of changing a tenant. Even if you are managing the property yourself, there are always costs when you change a tenant, even if it is just the lost days or weeks of rent, and the cost of advertising. For example, if you raise the rent by $10 a week, but then your tenant leaves your place empty for even just one week, think about how many weeks it will take to recoup this lost rent.
Take the time to consider your options before you increase the rent. Sometimes getting more money one week means you might get less the next.