Should Single-Family Landlords Raise Rent To Keep Up With Inflation? 4 Considerations
Rents have risen like crazy in 2021. They were up 9.3% nationally for single-family homes from August 2020 to August 2021, according to CoreLogic. This has been the biggest year-over-year increase in over 16 years. And more of the same is expected for 2022. So should you raise your rent to reflect these massive increases?
The big advantage mom-and-pop landlords have over institutional investors is that we can be flexible. Just as one-size-fits-all medicine isn't typically as good as individualized care, a one-size-fits-all approach to rent increases isn't usually the best way of doing business.
Instead of raising rents across the board just because you might be able to, a better approach is to first consider your particular circumstances. This will help you determine how much you should increase rent or even if you should increase it at all. Getting top dollar and making as much as possible is certainly a goal, but it's not the only goal landlords should have. Never forget the biggest profit killer is vacancy. Before you raise the rent, you would be wise to consider the following.
Source Fool.com
