Rental increases aren’t simply about making more money.

Effectively raising your rent during a renewal period ensures that you can keep up with rising property taxes, maintenance costs, insurance rates, and inflation. Regular adjustments help keep your property competitive in the current market while ensuring its upkeep meets tenant expectations.

Most tenants expect that their rent will go up when they renew the lease agreement.

Here’s how you’ll determine what your rental increase should be.

First, Analyze the Market

The first step in determining your rental increase is reviewing the local rental market. Research similar properties in your area to understand what other landlords with comparable offerings are charging. There are several ways to do this:

Use real estate websites, like Zillow or Redfin, to search for rental listings in your area.

Identify properties similar in size, amenities, and location.
Compare average rents and trends over the past 12 months.

Focus on neighborhoods or buildings with similar tenant profiles to your property so your data is as accurate as possible.

While these sites are a valuable starting point, talk to a property manager to get some deeper insights into the competition and the shifting rental values in your area. The online stats can be very superficial.

Factor in Inflation and Expenses

Recent inflation and rising property costs have contributed to higher rents in general. These factors also impact your investment earnings. To avoid losing long-term profitability, account for the rising costs of property maintenance, utilities, taxes, and homeowner’s insurance when proposing a rent increase.

Evaluate the Tenant Relationship

A loyal tenant who pays rent on time and cares for your property is worth retaining. Adjust your strategy accordingly so that you don’t push out a valuable tenant and create a vacancy for yourself. When you’re negotiating a lease renewal with a long-term tenant, consider smaller, incremental increases. These might be two or three percent increases annually unless the market says otherwise. It’s okay to let yourself hover just below market rents in order to demonstrate that you care about keeping your tenants.

Provide Notice in Advance

Give tenants plenty of time to prepare financially—and emotionally—for their rent increase. You’ll want to communicate the reasons for the adjustment clearly and transparently. Explain how the increase aligns with rising costs, market trends, or property improvements. A strong tenant relationship will be a good guidepost during the lease renewal negotiations. Most landlords will provide 60–90 days’ notice before the rent increase takes effect.

Consider offering incentives such as a new appliance or an aesthetic update to make the increased rent a bit more bearable.

Go Ahead and Raise the Rent

You have to raise the rent every year even if it’s modest. This allows you to:

Stay Aligned with Market Rates

Keeping your rent comparable to similar properties attracts the right tenants and prevents losing money due to below-market pricing.

Balance Operational Costs

Utilities, maintenance, and repairs increase in cost every year. Periodic rental increases ensure your profits stay intact.

Fund Property Improvements

Higher rents can allow you to reinvest in the property, improving tenant satisfaction and securing long-term lease renewals.

Let’s talk about the best way to raise your rent. We have the data and the analytics that can tell you exactly where that new rent should land. Contact us at Trend Property & Management. We’re here to help with all your Fort Worth property management needs, and provide services throughout the surrounding Tarrant, Parker, Johnson, Hood, and Denton counties.