Guide to Raising Rent

As a property owner, you may need to raise the rent on your investment properties from time to time. Increasing the rental rates for your properties can ensure you stay competitive and keep your properties profitable. But it’s not always easy to know exactly how to go about raising rent.

Here is what you need to know on how to raise rent while maintaining positive relationships with your tenants and pricing your property within market trends.  

Keep Your Tenants in the Loop

For tenants occupying a rental unit for more than 30 days, you must provide 90 days’ notice prior to raising the rent. If you have tenants who have stayed in the unit for under 30 days, Maryland law requires 60 days’ notice. 

Providing notice gives your tenants time to prepare for the rent increase, and that will work toward maintaining better relations with them.

Create a Schedule for Consistently Raising the Rent

An important part of maintaining good cash flow with your rental property is to raise the rent on a regular basis. An annual rent increase can protect you against inflation and cost of living increases. Additionally, a scheduled yearly increase will benefit your long-term tenants by letting them know when they should expect the rent increase. 

Follow Trends in the Rental Market

Raising the rent too high can chase away potential renters and force your current tenants to leave. Although most states put a cap of 3% on annual rent increases, the Maryland market has seen a lower average increase of 1.8%. 

Applying rent increases close to this rate will keep you competitive in the market when there are fewer renters in search of housing.

Get Professional Property Management Help

Reliable Property Management handles every aspect of property management, including processing rental payments, rent increases, and late fees. To learn how we can assist in the management of your rental property, contact us online or call 443-869-3799 today.