“The lack of money is the root of all evil.” Mark Twain

I generally raise rents in January, but this year, because I am running a little behind, it will be February. While I was getting my paperwork together, I thought it would be a good time to talk about the mechanics of the annual rent raise.

CORRECT FORMS. Always make sure you use the correct form. I get forms from the Apartment Association. The form “30 day notice to change the terms of your rental agreement” is the one you will need to use. You will also need to fill out “Proof of Service” forms for each tenant. These are for your records and should be kept in your tenant files.

I also keep copies of each rent raise notice because you will need them if you decide to sell or refinance in the future. It also keeps good records of your changing income on your property, which will be helpful at tax time.

HOW MUCH NOTICE. If your tenant has been there over one year, you will need to give them 60 day notice. If it is under one year, a 30 day notice will do. You will need to change from a 30 day notice to a 60 day for all tenants that fit the over one year criteria. Section 8 tenants always require a 60 day notice, after approval. The approval requires a few extra steps, so it is best to speak with your representative at Section 8 to make sure you are in compliance before sending notices.

ANYTHING UNUSUAL If you have an issue with your tenant, if they are behind in rent, or if there are other issues with their tenancy, you may want to speak to the Apartment Association with any questions. They are very helpful, provide many great services including forms, seminars and advice. If you don’t already belong you should seriously consider membership. It is, of course, tax deductible. If your issue is more serious you may need to consult with an attorney. Always choose one who specializes in real estate and preferably has experience in working with multi family property owners.

Good luck to all for a profitable 2024.

“Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.” Robert Kiyosaki

What we at PRS PROPERTIES CAN DO. We are always available to chat. We can give you referrals for professionals, such as lenders, contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparables in the area of your properties, so that you know what rental values are in your area. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We always have many investors who are looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.