When should you raise your tenant’s rent? Let’s take a look.
Landlords often ask me about when the right time to raise rent is. When I’m faced with this decision, I always look at the state of the market and the current market value of the property in question.
Hawaii’s average price on a single-family home is currently $810,000. This is the highest it has ever been.
If you were to rent out a property of that value, you would need to charge an average rental rate between $3,500 to $4,400 per month (depending on the allocation of certain costs) to make a 5% return on investment.
The bottom line is this: It is a great time to put your investment property on the market to rent it out.
“It is a great time to put your investment property on the market to rent it out.”
Many clients who we’ve managed properties for have seen their properties double in value in just 10 years. And with rental rates on the rise, real estate investing is a wise move right now.
If you have any additional questions about this, please feel free to reach out to me or anyone on my team. We are all armed with the same information, and look forward to hearing from you soon.