One of the most important tasks on your to-do list when you work as a property manager is to constantly evaluate the rent that your tenants pay. Often, you'll want to raise the rent to keep the property owner happy, but you must to do carefully so as not to discourage prospective tenants from renting with you. Keeping tabs on what similar properties in your area charge for rent can help you to assess what you should be charging, and there are several reasons that you might feel that it's appropriate to raise the rent. Here are some examples.
Demand For Space Is High
High demand for rental units is a good reason to raise the rent for the units in your building. When a large number of people are competing for a small number of units, many of them won't mind paying a little more than they might have expected in order to secure a location. This concept is applicable in both residential and commercial situations. You can monitor the number of rental units that are available in the area by constantly checking classified sites, or even hiring a real estate agent to help you dig up this information.
Development Is Coming To The Area
Development coming to the area around your building can be enticing for your clients, and this can be another good reason for you to raise the rent. For example, perhaps you're a property manager at an apartment building that sits next to a vacant lot. If a developer has recently bought the land and announced that it will be putting a grocery store or other retail outlets on this land, your building immediately becomes more appealing to people. Lots of residents will like the idea of being able to walk to buy groceries, and this can mean that you can charge more for rent.
Competitors Are Doing The Same
One of the reasons that you want to keep tabs on other rental properties in your area is to assess whether they're raising the rent. The rent can go up for a number of reasons, including simply its propensity to increase over time due to inflation. While having your rent significantly lower than other nearby properties might make people more interested in your building, it can also result in you getting less revenue in rent than you might want. Often, raising the rent that you charge to be in alignment with properties around you is a good idea.