When Do You Raise the Rent?

Property management is all we do, so I like to share the tips and specialized knowledge we have with our viewers to help them do business better. 

Property owners frequently call, email, and ask us in person: When do you raise the rent? It’s fairly simple: We raise the rents when the value of the property increases. We try to stay within a 5% return on investment. So, if your house is worth about $750,000, you should be getting around $3,000 to $3,200 in rent. When the value increases, the rent goes up. 

Fortunately for us here in Hawaii, we have some of the highest property values in the U.S., so your rents should be the highest in the county. For 99% of the people I do business with, that is the case. For those of you doing property management, remember: You have to raise the rents every couple of years as the values of homes increase. There are some circumstances when this doesn’t apply, but most of the time it does. 

If you have questions about raising rents or anything else to do with property management, give us a call or send an email. We look forward to speaking with you.