Tenants commonly perceive rent increases as an indication that the landlord does not like them. In reality, a rent increase is simply good business and purely dictated by the market. If you are managing your own rental property, it can be very difficult to stay emotionally detached from the tenant and to correctly increase the rent in accordance to market rates. This is one reason why hiring a property manager is essential to get the most out of your investment property. If the market calls for an increase, in the vast majority of cases it should be done to maximize profit.

The rent can be raised to reflect the current market at the lease end date.

The landlord and the tenant are both required to keep up with the lease end date. Most tenants keep up very closely with the expiration date of their lease, however, sometimes they are quite surprised to receive a renewal (at a rent increase) or vacate notice. Not only will a good property manager do current market rental comps to inform rent increases, they will also keep up with the lease end date.

At Crosstown Properties, we always take this time to evaluate the current rental market. Our leases call for a 30 day notice at the end of the lease term. We make sure to start the process early enough that the tenants get their renewal or vacate notices 10 to 14 days before the 30 day notice starts.

We notify the owner that the lease end date is approaching and make a recommendation for the rent increase offered upon renewal. At the owners direction, we then offer the tenant a new lease with an increased rent and updated lease end date.

This system gives the tenant plenty of time to consider whether or not they are interested in staying for another lease term as well as time to respond to the property manager if they want to negotiate the rent term. As residential property managers in Austin for nearly 20 years, we have been able to raise the rent at lease ends dates for many, many years as the Austin rental market continues to be a real estate goldmine.

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