Key takeaways
- Price to market comps, not to your costs.
- Annual increases of 3–5% are sustainable.
- A small loss-to-lease beats turnover.
- Concessions distort pricing — avoid.
- Communicate increases 60 days in advance.
Core concepts
Market comps
Three to five within 1 mile, similar bed/bath/condition, leased within 90 days.
Loss to lease
Difference between in-place rent and current market — accept 3–5% to retain.
Turnover math
Vacancy + make-ready often equals 2–3 months rent — usually beats holding for $50/mo.
Renewal flow
Send increase letter 60 days before lease end with renewal incentive option.
Step-by-step framework
- 1Pull 5 comps before pricing initial listing.
- 2Track local rent growth quarterly.
- 3Send renewal letter 60 days out with increase.
- 4Offer 12 vs 24-month renewal with rate step.
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Common mistakes to avoid
- Pricing on your costs not the market.
- Skipping annual increases for years.
- Aggressive increases that force good tenants out.
Frequently asked questions
How much can I raise annually?
3–5% in most markets; jurisdiction caps may apply.
Should I match market exactly?
Slight discount (1–2%) retains tenants longer.
Use rental-pricing software?
Helpful at 10+ units. Manual works below that.
How to handle pushback?
Show comps; offer 12 vs 24-month options.
Action checklist
- ☐Five comps per listing.
- ☐Quarterly market check.
- ☐60-day renewal notice.
- ☐Annual rent review on every property.
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