As a premier property management company for San Diego homes, apartments and commercial properties, we know that the rental market in San Diego is booming. In fact, many property owners are enjoying a considerable profit due to the ability to increase rental prices as the market dictates. However, even though there are plenty of renters available, it is important for landlords to understand best practices for raising rental prices and the effects of a price raise at the wrong time.
As a landlord in San Diego, you know that in order to maximize the profitability of your rental properties, you must find a balance between your rental rates and maintaining high occupancy. If your rates are lower than market rates, you may have no trouble keeping your unit occupied, but you may be missing out on potential income. Likewise, if your rates are too high, you may have trouble finding or keeping a tenant. While you certainly want to research the local market and competing units when renewing a lease or setting rents for a vacant unit, you should also be aware of specific laws in place for San Diego landlords when deciding how much to raise your rental rates.
Some landlords, such as those that participate in a government subsidized rent program or who own mobile home parks, are subject to rent control laws. Most landlords, however, are free to raise or lower their rents as desired, but there are some limitations. There is a rent raise law in effect in San Diego that specifies landlords must give their tenants a 30-day notice if a rent increase will be significant. Specifically, if the rent increase is more than 10 percent or equates to a 10 percent or greater increase over a 12-month period. For month-to-month tenants, a 60-day notice must be provided. For additional information about residential property management in San Diego, click here.
With rents rising in many areas across the city of San Diego, landlords may feel that a large increase is justified and reasonable. However, landlords should be aware that tenants may be more likely to vacate and leave the unit empty if the rent increase is too significant.
If you need assistance with pricing, marketing or accounting in regards to your rental properties, don’t hesitate to contact Harland Property Management. With experience in everything from how to market single family homes to the management of commercial properties in San Diego, we have the expertise and services to meet your property management needs. Contact us today at 858-367-0343 for a free, instant quote.