Thanks Marc, We recently adopted this language and it has worked very well on this year’s renewals: We hope you, and your family, have been well. Thank you for being a rental resident at (insert property address here) Our goal is always to provide a nice place to live, at a fair price. This is just a courtesy reminder that your lease ends on May 31, 2022. If you wish to extend your lease for another year we will be happy to do that. Whenever the prospect of raising rent comes up at any property, we take a good hard look at it to make sure it’s necessary. On average rent prices in this area have jumped 10% to 25%, or more, in just the last 18 months to 2 years. Taxes, maintenance costs, material costs, insurance, labor costs etc have all increased dramatically as well. In that light, we have decided it is necessary to raise the rent on your unit, effective June 1, 2022 to $2,000.00. Even with this increase, we believe we are still well below the average market rent for a unit of this type. This discount is offered because you have been a good resident and are taking good care of the property. Rather than pay an increase, you may choose other housing. Should you intend to vacate at the termination of your lease, the original lease agreement states that you have to provide 60 days written notice of your intent to move. If you choose, signing the attached Notice to Vacate form checking off that you will not renew and returning the form to us 60 days in advance of your expected renewal will be considered your written notice. Please respond to this email and let us know if you would like to extend your lease for another year. If you intend to end your lease on May 31, 2022 you must give us written notice using the attached notice to vacate form no later than April 1, 2022. If you have any other questions please email us at info@keyrentalhomes.com.
And here is the most recent response we got from a tenant: Hi Deryk, Thanks very much! We would definitely like to extend our lease another year. We appreciate you guys not gouging us with the renewal rate; we have looked at prices for other places locally and that increase is very reasonable. Just let us know what we need to do next to make it official. Thanks!
if you approach the renewal increase properly, you will be able to illustrate to them that a $20 increase in rent comes to only $240 for the entire year. They would spend 3x that (or more) on just a moving truck to go elsewhere where they think they’d save $. There are many other expenses involved in moving as well and when they do the math , your $20-$25 rent adjustment is nothing compared to what they’d spend to move. Just help them think of it that way.
Great vid and exactly in this position and all the things you highlighted are what I’ve done and doing. Got a meeting set up next week to discuss and provide them the proof of why increasing They are great tennents and been with me 20 years and they fix things and just charge me the material cost only. However still very nervous about the meeting as they pay £1475 and market value is £2,200. My strategy is mention all the stuff you said and ask for £2,000 but have a hard line of £1,900 and just bite the bullet of having new tennents and hopefully the the turnaround cost will recouped in the first year by the increase ie £700 per month x 12 = 9,400
And there’s a special place in elementary school for those who don’t understand how basic business economics works. These are those morons that don’t understand that your rent is broken up into hundreds of little pieces and pays for all of these things such as trash collection, common area utilities, lawn care, property taxes, insurance, supplies, etc. it’s this idiotic mindset of “my rent pays simply for me to live within these four walls” that create such a low understanding of why rent needs to be adjusted every year. I work in the Residential Property Management industry, where I work at and manage the large apartment communities (with the pool, fitness center, etc). This somehow is always a conversation that I need to enlighten residents on at least once a year. Somehow, people understand that the grocery store owner has costs incurred with operating that store and therefore realize that these costs affect the price of a gallon of milk. However, these same individuals can’t comprehend that a property owner also has expenses (such as those listed above) for their property. It’s this lack of knowledge that causes them to not understand why rent needs to be adjusted every year.
Well unfortunately, rent does not have anything to do with how much money you make. Rent is set in order to pay bills and when costs increase (such as trash collection, common area utilities, insurance, maintenance costs, lawn care, etc) your rent increases in order to compensate for this. Just remember, property taxes go up EVERY year as well. To those of you who don’t understand how things work…. YOUR RENT PAYS for these things! I work in the Residential property management industry, where I manage the large apartment communities (owned and managed by the large national organizations). It’s like trying to explain basic business economics 101 to a third grader. There’s this idiotic notion that your rent payment is simply for the “privilege of living within these four walls”. It’s THIS stupidity that causes residents to not understand why rent needs to be adjusted every year. 🤦🏻
Thanks Marc,
We recently adopted this language and it has worked very well on this year’s renewals:
We hope you, and your family, have been well.
Thank you for being a rental resident at (insert property address here) Our goal is always to provide a nice place to live, at a fair price. This is just a courtesy reminder that your lease ends on May 31, 2022. If you wish to extend your lease for another year we will be happy to do that. Whenever the prospect of raising rent comes up at any property, we take a good hard look at it to make sure it’s necessary.
On average rent prices in this area have jumped 10% to 25%, or more, in just the last 18 months to 2 years. Taxes, maintenance costs, material costs, insurance, labor costs etc have all increased dramatically as well.
In that light, we have decided it is necessary to raise the rent on your unit, effective June 1, 2022 to $2,000.00.
Even with this increase, we believe we are still well below the average market rent for a unit of this type. This discount is offered because you have been a good resident and are taking good care of the property.
Rather than pay an increase, you may choose other housing. Should you intend to vacate at the termination of your lease, the original lease agreement states that you have to provide 60 days written notice of your intent to move. If you choose, signing the attached Notice to Vacate form checking off that you will not renew and returning the form to us 60 days in advance of your expected renewal will be considered your written notice.
Please respond to this email and let us know if you would like to extend your lease for another year. If you intend to end your lease on May 31, 2022 you must give us written notice using the attached notice to vacate form no later than April 1, 2022. If you have any other questions please email us at info@keyrentalhomes.com.
And here is the most recent response we got from a tenant:
Hi Deryk,
Thanks very much! We would definitely like to extend our lease another year.
We appreciate you guys not gouging us with the renewal rate; we have looked at prices for other places locally and that increase is very reasonable.
Just let us know what we need to do next to make it official.
Thanks!
Love it!
Thanks Marc! Looking forward to the Coaching Series version :)
Love that you are in the PM coaching group Daniel. I think you will enjoy this months topic - be watching for it! :)
Get the video coaching. Mark is great well worth it.
Thanks Edward!
if you approach the renewal increase properly, you will be able to illustrate to them that a $20 increase in rent comes to only $240 for the entire year. They would spend 3x that (or more) on just a moving truck to go elsewhere where they think they’d save $. There are many other expenses involved in moving as well and when they do the math , your $20-$25 rent adjustment is nothing compared to what they’d spend to move. Just help them think of it that way.
Great vid and exactly in this position and all the things you highlighted are what I’ve done and doing. Got a meeting set up next week to discuss and provide them the proof of why increasing
They are great tennents and been with me 20 years and they fix things and just charge me the material cost only. However still very nervous about the meeting as they pay £1475 and market value is £2,200. My strategy is mention all the stuff you said and ask for £2,000 but have a hard line of £1,900 and just bite the bullet of having new tennents and hopefully the the turnaround cost will recouped in the first year by the increase ie £700 per month x 12 = 9,400
Scumbag I hope they find better
Its 2023 and we still haven't raised rent on our tenants and we are now 600 below market rate.
Heck, try explaining the concept of “paying rent on time” to many of these people.
How to be a better leach.
hey marc how about explaining a rent increase to an owner lol
serious question (california, rent control)
that is CA for you!!
7:15 video begins
Housing should be non profit shame on property managers and real estate investors for creating a housing crisis and and excessive homelessness. Shame!
There is a special place in hell for the greedy remember
And there’s a special place in elementary school for those who don’t understand how basic business economics works. These are those morons that don’t understand that your rent is broken up into hundreds of little pieces and pays for all of these things such as trash collection, common area utilities, lawn care, property taxes, insurance, supplies, etc. it’s this idiotic mindset of “my rent pays simply for me to live within these four walls” that create such a low understanding of why rent needs to be adjusted every year. I work in the Residential Property Management industry, where I work at and manage the large apartment communities (with the pool, fitness center, etc). This somehow is always a conversation that I need to enlighten residents on at least once a year. Somehow, people understand that the grocery store owner has costs incurred with operating that store and therefore realize that these costs affect the price of a gallon of milk. However, these same individuals can’t comprehend that a property owner also has expenses (such as those listed above) for their property. It’s this lack of knowledge that causes them to not understand why rent needs to be adjusted every year.
Yeah, explain that when my wages don’t go up with inflation. Suck it
Well unfortunately, rent does not have anything to do with how much money you make. Rent is set in order to pay bills and when costs increase (such as trash collection, common area utilities, insurance, maintenance costs, lawn care, etc) your rent increases in order to compensate for this. Just remember, property taxes go up EVERY year as well. To those of you who don’t understand how things work…. YOUR RENT PAYS for these things! I work in the Residential property management industry, where I manage the large apartment communities (owned and managed by the large national organizations). It’s like trying to explain basic business economics 101 to a third grader. There’s this idiotic notion that your rent payment is simply for the “privilege of living within these four walls”. It’s THIS stupidity that causes residents to not understand why rent needs to be adjusted every year. 🤦🏻
Shame on all housing associations who increase rent for already struggling, in poverty, in debt, in hell, lone living tenants like myself.
Rent is high enough chill
Your tv/monitor is flashing like mad in the video. Makes it impossible to watch.
yea - sorry about that. We have now corrected that.