Madison Management Property Explains When To Raise Your Rent

1
Madison Management Property Explains When To
Raise Your Rent
2
When to raise the rent of your commercial
property?

• The monthly rent of a commercial property usually
  depends on the prevailing rates of real estate in
  the industry. The range of rent charged is also
  governed by the location, assumed profitability,
  amenities and goodwill of the property. The
  landlord and the tenant register their
  acknowledgement of the rental rate when signing
  the lease. However, in due course, various
  factors come into play which might compel the
  landlord to think about raising the rent. A lease
  generally contains the provision to allow the
  landlord to raise the rent under a few valid
  circumstances.

3
Here are four circumstances which validate a rent
raise

• When your tenant renews the lease repeatedly
• If the tenants renew the lease consecutively for
  a few years, it can be assumed that they are
  satisfied with their occupancy. This satisfaction
  can and should be harnessed further by raising
  the rent by a logically acceptable percentage.
  The landlord can also approach the tenants with
  the proposal of raising the rent and it is quite
  possible that tenant offers to pay an extra
  amount more than the landlord had expected.

4
Here are four circumstances which validate a rent
raise

• When your expenses increase due to inflation
• Inflation has an impact on the costs incurred by
  the commercial property in question. You should
  include the increasing expenses on taxes and
  insurances in your yearly expense account and
  reconsider your profit margins. It is quite
  logical to discuss a raise in rent with your
  tenants over the issue of inflation.

5
Here are four circumstances which validate a rent
raise

• When your neighborhood decides to raise the rent
• If the neighborhood of the commercial property is
  witnessing a raise in rents then the landlord
  must consider raising the rent to catch up with
  the prevailing rates. Property management
  services such as Madison management help keep
  track of rates in the city and neighborhood so
  that as a landlord you are never shortchanged on
  your property.

6
Here are four circumstances which validate a rent
raise

• When you invest in enhancing the value of your
  property
• If the landlord decides to invest in enhancing
  certain amenities or introduce new services
  within the property premises, the commercial
  property certainly deserves a raise in rent. In
  other words, the rent of the property must
  represent its value. Good property management
  firms such as Madison property management
  continuously work to develop the commercial
  properties in their charge and the value addition
  must be appreciated with a rent raise.

7

• Contact us for more information on
• Madison management and Madison property
  management
• Connect us through http//madisonprop.com