A friend called. His tenant is leaving, and he is worrying. Asking to help him find a new tenant, but warns me that he needs to increase rent significantly.
– I have circumstances. We just had a baby, and for now I am the only one who’s working, expenses are up, so I need to rent my townhome for more.
– I am very sorry to hear that, but when you are renting your townhome, your circumstances in New York mean diddly squat in Daytona Beach.
How much you can rent your townhome for depends only on the market where your townhome is:
You rent for what your local market can bear.
– But it is a national trend that rents are up…
– You are not renting nationally, you are renting here and now. Here locally in some places rent goes up, in some it is stable.
You rent for what your local market can bear.
– You do not understand, my maintenance is up, my taxes are up, so my rent should be up as well…
– Not necessarily. There are brand new fancy apartment complexes in the vicinity, and they fiercely compete for the same tenant, offering good rates and discounts.
You rent for what your local market can bear.
