PHOENIX, AZ. – If you own Phoenix Rental Property one of the most common decisions that you could be facing now most like landlords across the United States is to raise the rent at your rental property in Phoenix or not.
Before raising the rent on one or more tenants at your rental properties in Phoenix here are four things you should consider before raising the rent on your tenants.
#1 – Compare Properties Nearby
Although you may be tempted to raise the rent at your Phoenix Rental the reality is that you should first do a comparison of other properties nearby because you want to confirm what similar rental properties nearby are renting for compared to your property.
Specifically you should be reviewing amenities, sizes and the location of similar rentals in Phoenix because it may be difficult for you to justify a rent increase with your tenant if you haven’t done much to improve your rental in the last 12 to 24 months.
#2 – Think About the Economy
By the time you read this article the state of the economy could have changed and we could be experiencing more job losses in Phoenix, or job growth, so it’s important to also think about how the state of the economy will affect you raising the rent on your tenants because a rent increase could make it more difficult for your tenant to continue living in your property especially if they haven’t received an income increase in the last year.
#3 – Review what’s NEW Businesses Are Nearby?
Another important thing to do when analyzing if it’s a good time to raise the rent on your tenants is to analyze what new businesses have come to Phoenix in the last year because having more businesses nearby like well-known grocery stores, shops and stores is a major incentive for tenants who want to live close to everything and it could also be another motivator for existing tenants to renew their leases when they realize that their favorite grocery store in Phoenix could be 30 minutes away when they move versus around the corner right now.
#4 – Break Down the Cost of Moving
Last of all, but most important, when the time does come to talk with your tenants about raising their rent it’s important to break down the cost of moving vs. staying where they are at.
If your tenant is moving out of town or state it could cost them thousands of dollars for their move versus staying where they are at for another year.
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