As a landlord, it’s important to periodically review the rental rates of your properties in order to ensure that you’re receiving fair compensation for your investment.
However, increase rent can be a delicate balancing act – you don’t want to risk losing your tenants, but you also don’t want to leave money on the table.
In this article, Wing Tai Holdings will give you some tips for raising the rent without alienating your tenants.
1. REVIEW THE RENTAL MARKET
Before raise the rental, it’s important to do your research and make sure that your proposed rent increase is in line with the market.
Check out rental listings for similar properties in your area to get an idea of what your competition is charging.
You can also have a look at this blog, where we update latest information about rental market in Singapore 2023:
Rental Market in Singapore 2022-2023
2. GIVE AMPLE NOTICE
In Singapore, landlords are required to give tenants at least one month’s notice before raising the rent.
However, it’s a good idea to give tenants even more notice than that – aim for at least two to three months.
This gives your tenants time to prepare for the increase and decide whether they want to renew their lease or seek out a new rental.
3. BE TRANSPARENT (how to raise rent without losing tenants)
When notifying your tenants of the rent increase, be transparent about your reasons for doing so.
Explain any increases in operating costs, property taxes, or other expenses that have led you to raise the rent.
By being upfront about the reasons for the increase, you can help alleviate any resentment or mistrust that your tenants may feel.
4. OFFER INCENTIVES
One way to soften the blow of a rent increase is to offer your tenants some incentive for renewing their lease.
You can benchmark the current asking prices in the same project and offer a rent out slightly lower.
By sweetening the deal, you may be able to convince your tenants to stay despite the higher rent. It will still be advisable to work with an active property agent that knows
how the market is moving and to get inside information of the transactions that is not known to the public data yet.
5. CONSIDER A GRADUAL INCREASE (Increase Rent)
If you’re hesitant to raise the rent too much at once, you could consider a gradual increase over time.
For example, you could raise the rent by 5% every year for the next three years.
This allows your tenants to adjust to the higher rent slowly rather than being hit with a large increase all at once.
6. MAINTAIN GOOD COMMUNICATION
Throughout the rent increase process, it’s important to maintain good communication with your tenants.
Encourage them to voice any concerns or questions they may have, and be responsive to their needs.
By fostering a positive and open relationship with your tenants, you may be able to mitigate any negative feelings about the rent increase.
7. CONSIDER OFFERING A PAYMENT PLAN
If your tenants are struggling to pay the higher rent, consider offering them a payment plan.
This could involve splitting the increase into smaller monthly payments, or delaying the increase for a few months to allow your tenants to get their finances in order.
By being flexible and accommodating, you may be able to retain your tenants despite the rent increase.
You may have many questions when persuading renters to accept the new price.
This blog contains common Q&A and tips for landlords who want to increase rent:
Q&A for Landlord who wants to raise rent
Raising the rent can be difficult for landlords,
but with the right approach, it doesn’t have to mean losing tenants.
Besides raising the rent, there are other tips to maximize your rental income:
https://buycondo.sg/maximise-rental-income-singapore/
We hope you found this helpful and wish you success in your rental business!
If there is any difficulty in managing your property, feel free to contact us at the phone number +65 94507545 or email info@wingtaiholdings.sg to get free advice from our professional team!
