Should You Raise Your Rent?

Everybody thinks the best way to make more money with rental property is to raise your rent. And sure, sometimes that makes sense — but not always.

Here’s why: if you raise rent too high and your tenant leaves, you’re looking at vacancy costs, make-ready repairs, leasing fees, and months of lost income. Suddenly that extra couple hundred dollars doesn’t look so great when it’s costing you thousands.

Now, there are times when it makes sense to raise your rent — like if you’re planning to sell soon, or if you take a gradual approach with smaller increases. But the bottom line is this: sometimes keeping a good tenant slightly below market rent is more profitable than forcing them out.

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