Do you need a larger income so you get to invest in some off plan projects in Dubai such as Port de la mer? What about those new projects by Emaar you’ve been giving so much thought on investing lately? Well, maybe it’s time to start raising the rent on your property so you can start investing in your future.
If you’re part of the rental property market, as a landlord, you must already know how hard it is to raise the monthly rent on your tenants. This is something that you will experience at least a couple of times as a landlord and it might be a little unpleasant or even awkward but if you know how to do it you are going to be just fine.
There are plenty of reasons besides investing for a landlord to raise his/her rental prices such as an intention to match some of the market prices and rates, to pay for maintenance or even improvement of the property or, as mentioned before, to simply increase profits.
1. When To Increase Rent
As a landlord, you should check the terms on your contract and confirm when you are truly allowed to increase rent prices and the contract also probably states how much. Landlords are legally allowed to increase the rent as long as you give your tenant a 3 month notice period.
2. How To Inform You Tenants
You should, by the very least, let your tenant know in person or writing (like a letter or an email). This letter/email must include how much the new rental price will be and when it will take effect.
3. How Much To Increase Rent By?
As a property owner and a landlord, you are allowed to increase rent according to the guidelines set by RERA. Of course, if the rental increase is too high for the local market and your tenants and you start asking for more money than what you’re offering deserves, you’ll probably run out of tenants within weeks and a case can also be filed against you.
You should consider setting an appropriate rent amount so you keep your prices within the market standards. You can compare with some other rental properties nearby.
4. How To Handle Backlash?
When you’ve already announced your rental increase, you must be ready to receive some negative comments and feedback from your tenants who won’t like it so you need a good argument that serves as a justification for the increase.
To read more on topics like this, check out the house category.