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Overheard a landlord say he raises rent every year even if nothing changes
Was grabbing coffee near a duplex I manage in Phoenix and caught two guys at the next table. One said he bumps rent 5% every single lease renewal because tenants expect it. Said if you don't raise it, they think something is wrong with the place. I've been nervous to raise rent on my long-term tenant who's been there four years and always pays early. Has anyone else run into this pressure to bump rent just because?
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blairj554mo ago
Ran into something similar with my brother-in-law at a BBQ last summer. He manages a few units in Mesa and said the same thing about tenants getting suspicious if you don't raise it. I got a buddy who owns a duplex in Flagstaff and he's never raised rent on his tenant in six years because the guy is a mechanic and fixes stuff around the property for free. Makes you wonder if it's better to just keep good people happy instead of chasing that extra couple hundred bucks a month. Every situation is different I guess.
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olivia_murphy4mo ago
Six years with no rent increase and he trades repairs for free rent? That is wild to me @blairj55. I don't think I could ever trust that arrangement because what happens when a big repair comes along and the guy can't fix it? You'd be stuck playing catch up on rent plus the cost of a real contractor. And the tenant might just leave if he gets sick or moves away. Then you have to raise rent a ton to make up for lost time and scare off new people. I guess it works for some people but it feels like gambling to me.
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abby_robinson584mo ago
Bumping rent just because feels wrong but a small yearly increase keeps things fair for everyone involved.
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