Increasing rent is a dicey decision for landlords. On one hand, as a landlord, you have to manage heavy repairs and maintenance in keeping with rising living costs, while on the other, you also don’t want to risk losing your tenants.
However, raising the price is reasonable if your property is located in a city like Alhambra. Here’s why.
High Cost of Living In Alhambra
In terms of cost of living, Alhambra ranks 12th out of 273 cities in the US with the cost of living being 43% higher than the national average. Transportation, groceries, and other living costs are also increasing in the city. Considering these factors, the cost of Alhambra property management and repairs is also quite high. Hence, increasing your rent for an Alhambra property can be justified, so long as it is in accordance with local laws.
Alhambra is an Excellent Location
Alhambra is a beautiful city. It is located on the outskirts of Los Angeles, making it easier for people to commute to and from Los Angeles for work and have a peaceful suburban life at the same time. The weather here is warm and appealing. Alhambra has a close-knit community, good neighborhoods, plenty of recreational services like gyms, fitness centers, and libraries. There are good schools, restaurants, diners, parks, pubs, and community halls located in the city.
Hence, the desirability of rental homes here is increasing. A house in a location that has so much to offer to the residents is bound to be expensive, and a high rent would, therefore, make sense.
Property Taxes, Insurance, HOA, And Other Fees Are Increasing
In Alhambra, the average rent for an 874 sq. ft. apartment is $2,198, but a significant share goes into property taxes, HOA, and other costs. The sales tax in Alhambra is 10%, and the income tax is 9.3% which are both respectively higher than the US average.
The average monthly HOA fee that you would pay in the city is approximately $250. The insurance costs are increasing and the premium for the landlord’s insurance is approximately 25% more than the regular homeowner’s insurance.
Some other fees include the legal attorney charges, which might be $200 or more, administrative costs like registration and screening tenants, and property management costs that could very well take 10% from your monthly rental income.
Booming Economy, High Median Salary
The economy is booming in Alhambra. The median household income in Alhambra is $61,384, and the median individual income is $35,299. The job market has increased by 0.7% in the last year and is estimated to grow by 35.3% in the next ten years. Increasing rent in a good job market is less painful as your renters likely have the potential to sustain the increase. If you have been contemplating increasing the rent, now can be the time to do it.
Landlords should know that they have the right to increase the rent once every 12 months, and by no more than 10%. Abiding by rent control laws is necessary to negotiate a fair yet profitable rent increase with your tenants, which is mutually acceptable.
If you need assistance in making rent-related decisions, you can consult a reputed agency like ZenPro Property Management. Our skilled professionals can help you calculate the right amount of rent for your property and manage your ROI.
For more information, contact us at ZenPro Property Management.