Raising rents doesn’t make you a jerk
According to forecasts.org, as of today, the rate of inflation in the United States is 4.12%. That’s really high! Whether you live in St. Louis, the East Coast or Juneau Alaska this affects everything from the cost of a gallon of gas to your taxes. Money is worth less so it takes more of it to buy any product.
This seems like a pretty easy to follow matter that we really have no power over. I think we can all agree on that. With that in mind, why is it that so many landlords refuse to raise their rents each year for their units? I’ve heard excuses ranging from laziness, to lack of time, to not wanting to come off as a jerk.
I don’t know if I can help you if making more money isn’t a motivating enough reason for you, but those in the former camp are in luck. I am here to officially tell you that you are not a jerk if you raise the rent for your units. For the justification of this statement, I will simply refer you back to the beginning of this post where I cited the current inflation rate of 4.12%.
You own your properties to make money. You have both directly and indirectly put your blood and sweat into your properties and you deserve to profit from your labors. As your expenses climb due to the rising costs of living, you have a right and obligation to yourself to pass on those expenses. If you rent a unit for $500 this year, you are completely fair in raising the rent to $520 or $525 the following year. Any reasonable tenant should expect such a raise and not begrudge you for it. Its fair, its fine, its worth it.