MISS MANAGEMENT
carol levey | levey enterprises
Dealing with Residents Angry
About Rent Increases
Q
Last year, my community of 250 units started raising rents across
the board. Before that we would consider a small increase at turnover,
but we were recently told to budget 3-5% increase on all renewals during
2015. This is going to be the second substantial increase for many of our
residents and for some it will be the third increase in three years.
In the past year, more than half the residents up for renewal
demanded to see the manager upon hearing about the rent increases. So
I can’t assign anyone on my team because, well, I am the manager! When
the plans for 2015 get out I’m concerned it will get ugly. Hopefully you
have some fresh ideas because I’m sure we’re not the only ones having
this challenge.
A
First, there should never be an excuse for a rental increase and
neither should there be an apology. Raising rents is an economic
necessity for operating an apartment community. Other than during
the great recession rental increases are a fact of life that we all
realistically expect. Some communities are currently experiencing
double digit increases contingent upon renovations and/or other
factors. The ownership has made a decision in order to keep the
operating results in line with their investment parameters. Unless
rents are periodically increased we can expect upkeep to the property
to deteriorate, onsite employment to be reduced and response to
residents compromised.
As the onsite leader you must be ready, willing and able to roll
out rent increases yourself. In addition, you must prepare and expect
your team, individually and as a managerial group, to be able to do
the same.
The emphasis is two-fold: first, you must be confident at