The Slowing Economy In Nigeria’ Should Landlords Raise Rents?
One of the foremost asked queries I actually have had over the previous couple of months needs to do with raising rents. Many Landlords want to raise rents however are hesitant in doing so, thus for concerns of the tenant departure and having a vacant living accommodations. One which will not be stuffed terribly quickly.
What i need to share with you is what I actually have seen a number of the highest living accommodations landlords doing and you’ll presumably borrow from these ideas, ways and philosophies.
First, the foremost necessary issue to think on why you own the living accommodations property in the initial place. Hopefully it’s to create a profit. Yes, it’s nice to produce housing and facilitate individuals – that’s an honest issue however the most important reason you’re during this is as a result of you wish to generate money. Your responsibility to your shareholders (you and your partners) is to create profit. So in other words, you have to increase rent.
Related to this can be the viewpoint that the tenant can get mad and presumably leave, of which you will not like that to happen. I want you to foremost bear in mind that this can be YOUR property and you’re taking all of the risks here and if you’re doing an honest job of management and therefore the tenant sees the value added to the property, they might end up staying.
Remember it may be a large problem to maneuver – particularly if a tenant has been within the unit for a few time. Repeatedly even a hefty rent raise won’t cause a resident to maneuver owing to the effort you make for the property not to lose value.
Lastly, albeit the tenant leaves that’s really an honest issue in most cases. It permits you to not only solely raise the rent but also new tenant within the property.