A common question that owners of apartments for rent in new haven ct are seen asking is when the rents of their apartments should be raised. It is something that puts almost every apartment investor in the state of worry at some point in time.
A common mistake here that most of the investors make is that they’re too slow in increasing their rent prices. They are just of the view that they do not want to disturb things when everything is going just fine. They think that their rentals are occupied, they are getting rent on time and, therefore, they are not rushed for raising rents.
To be honest, lots of thoughts go through the mind of any apartment investor when they think about raising rents. Whenever they plan to do so, they think of something that restricts them from increasing rents. So, the question remains, when exactly is the best time for raising rents? Well, the best answer is that when the occupancy of your apartments for rent goes over 95-97 percent, you should increase rents. Or, you should increase rents when your residents have not raised it for quite some time. In such a scenario, you may be lagging behind the market price considerably and should seriously think about raising rents.
Many property owners raise rents too slowly only because of the psychological factor as they want their apartments to stay occupied at all times. Instead of keeping focus fully occupied units, one should focus their efforts on striving for maximizing their profits as well as the property’s value. There could be many other details on this, and one just needs to keep in mind that it’s not just the increased flow of cash that they can get by raising rents but many other benefits as well.
Surely you can be nice to others but remember that you are not in the market to do the social work only. You have to stay in business, and you can do that by steadily increasing the rental income. It is common for landlords to not raise rents for their new haven apartments because their tenant is single, nice, between jobs or just has any other problem for that matter.
It is also important to always keep in mind that you’re doing business to make maximum profits instead of offering affordable housing to others. It is just like the point mentioned above, but it’s a bit different. You can show sympathy with others, but you can’t ruin yourself or your business for them.
A good practice that you should adopt is to review the rentals quarterly, at least, to determine if you should raise rents or not. You should think of maximizing profits every time but reevaluating things after a reasonable period is always advisable.