Increase Rent and Increase Your Cash Flow

In my last letter to you I suggested rent formulas often used by Property Managers like myself.
Another strategy that you might find helpful will be Incremental Rent Increases.

Managing my client’s properties, it is my responsibility to greatly maximize their investment, and to advantage them every way I can.
One of the ways I do that is to add Incremental Rent Increases built right in the lease. Rental properties have many legal parameters that must be adhered to – and this includes rental increases; but it is one simple way to greatly increase your investment.

Essentially each year the rent will increases automatically and stays consistent with property values increases (projected property appreciation).

This can help you:
Increase cash flow automatically.
Keep your rents at market value.
​Avoid tenant hard feelings with unexpected rent increases.
To not have to terminate a good tenant –  to gamble on a new tenant to increase the rent.
Reduces prep between tenants.

Potential tenants are fine with pre-set increases. and they feel its fair. However, surprise increases upset tenants and they tend to respond by not renewing their lease.
As a property manager, I call this future pacing and its a constant thing I do with my client’s tenants.

There are so many strategies to maximize your investment!

Read More: Increase Rent

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Joe White

Joe White is a Philadelphia Property Manager and Real Estate Broker. He is the owner of Grow Property Management and has been involved in the management, sales and purchases of Philadelphia area rental investment properties since 2008. He is an author and works as a real estate investment consultant and construction manager.

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