This is what I was thinking as well but will I be able to increase the rent the following year or do we have to wait for the province to approve a rent increase?buysellbuy wrote: ↑ My advice for etiquette is don't increase it in the first year.
From my experience tenants feel cheated when it goes up so soon and every single year.
It's only 1.2% this year so I think the downside will outweigh the benefit.
In theory next year's rate increase should be much larger as it follows high inflation. I would wait till next year.
You have to wait for the province to announce the amount of rent increase allowed in 2023.
I don't agree with this but to each their own. I always raise the rent every year on all my rentals. Never had an issue in 20 years. You are running a business. Do you think Bell or Rogers cares if your a new customer when they raise the rates on their internet $5/month?buysellbuy wrote: ↑ My advice for etiquette is don't increase it in the first year.
From my experience tenants feel cheated when it goes up so soon and every single year.
It's only 1.2% this year so I think the downside will outweigh the benefit.
In theory next year's rate increase should be much larger as it follows high inflation. I would wait till next year.
Does it even follow inflation? The average inflation in 2021 is much higher than 1.2%buysellbuy wrote: ↑ My advice for etiquette is don't increase it in the first year.
From my experience tenants feel cheated when it goes up so soon and every single year.
It's only 1.2% this year so I think the downside will outweigh the benefit.
In theory next year's rate increase should be much larger as it follows high inflation. I would wait till next year.
WHATbuysellbuy wrote: ↑ My advice for etiquette is don't increase it in the first year.
From my experience tenants feel cheated when it goes up so soon and every single year.
It's only 1.2% this year so I think the downside will outweigh the benefit.
In theory next year's rate increase should be much larger as it follows high inflation. I would wait till next year.
Tenants seem to feel that landlords are rich and because your property went up in value and you’re a millionaire that you shouldn’t ask for an increase. The rent is already so high, why do you need more money? I’ve dealt with enough tenants who feel this way. It actually pisses me off.
See the post above. He will realize in 10 years the pickle that he’s in.
You can only do what you're suggesting if your property isn't subject to rent control, which the majority are, unless your property was first used as a rental property after November 1, 2018.1xTiMeR wrote: ↑ We don't want to increase it yearly because it seems we are nickle and diming every tenant. It is likely the tenant will move out in 1-3 years anyways so we just increase it to market after.
If they stay long term, we just raise it by much more than 1.2% after like 3-4 years no raises - we just increase it pretty much at anytime - probably closer to 10%. Say for example, we know we are giving cheap rent to begin with, say $500 for a basement room downtown- we just raise it to $530 or $550 in one shot.
Doing the 1-2% raise aint worth it. It goes a long way to tenants when you are not nickel and diming them, treating them as a means to an end. If you have a Karen tenant, goodluck either way.
haha well they can move out and find another place, which would be aligned to my increased rent price so its going to be fair either way you look at it; accept the increase or find a market comparable but they always end up upgrading anyways.moofur wrote: ↑ You can only do what you're suggesting if your property isn't subject to rent control, which the majority are, unless your property was first used as a rental property after November 1, 2018.
Also, psychologically I'm not sure if the tenant will thank you for not increasing it all these years. All they'll focus on is that you've raised it by 10% or more that one year.
If you don't keep up with inflation you are losing more and more money every year (and provincial guidelines DO NOT keep up with inflation, so it is even worse), that is not really how a business is designed to run.
Just seeking some clarification as I'm not too sure.moofur wrote: ↑ You can only do what you're suggesting if your property isn't subject to rent control, which the majority are, unless your property was first used as a rental property after November 1, 2018.
Also, psychologically I'm not sure if the tenant will thank you for not increasing it all these years. All they'll focus on is that you've raised it by 10% or more that one year.
