10 Nov How Much Should You Raise the Rent in Your Los Angeles Apartment Building?
By MW Real Estate Group
LOS ANGELES, CA – Do you own a Los Angeles apartment building and are wondering how much you should raise the rent? If so, you’ve come to the right place.
In this article, we will provide insight you should consider when raising the rent on your tenants so that it’s done professionally and efficiently.
Is Your Los Angeles Apartment Building a Class A-D Building?
Before considering raising the rent on tenants in your Los Angeles apartment building it’s important for us to first ask what is the class of apartment building that you own?
Class A Apartment Building – Renters in these buildings often earn more than $80,000 per year, spend roughly 20 percent on rent, and won’t hesitate to consider moving because they have money available to spend on their move.
Class B Apartment Building – Tenants in Class B apartments generally are pretty comfortable in these professionally managed apartments because they often earn more than $50,000 per year and are in the position to withstand a rent increase without it breaking their bank accounts.
Class C & D Apartment Building – Last of all are class C & D apartments. Tenants who live in these Los Angeles Apartment buildings are generally “on the edge” when it comes to finances because they earn an average of $30,000 per year, or less, and would move if they faced a rent increase.
Owners of class C & D apartment buildings often have a more difficult time raising the rents in these buildings due to turnover and prolonged vacancies if they aggressively raise rents without considering the state of the rental market first.
Get Los Angeles Property Management
Tired of self-managing your Los Angeles Apartment building, or are you searching for a better property management company than what you currently have?
Contact the MW Realty team today by calling us at (213) 927-2117 or click here to learn more about our services.