How Much Do You Adjust Rents For Inflation
Question: How much are you raising your rent because of inflation?
That's not really the way it works. As a very efficient property management company, we charge what the market will bear, so we charge as much rent as a tenant is going to pay within a reasonable amount of time. Vacancy gets extremely expensive, so we don't want the property sitting vacant because it's costing the property owners a fortune and thousands of dollars a month in rent.
Basically, we put the property within asking price, then we very religiously check the metrics on it because we want to see what kind of traffic we're getting. We need to get X number of inquiries a day and x number of those inquiries are of folks who actually ask to see the property. And at that point, we know the property is likely priced right and will rent within a reasonable amount of time.