Am I a Greedy Landlord?

Scott,

I own an investment property in an area where rent prices have basically doubled during COVID. Do I keep my good tenant of nearly 10 years who is now on very, very low rent, or chuck him out to cash in on the double dollars with new tenants? The tenant could actually be making money as he has two rooms to sublet, and the rent from these could exceed the entire rental. The rent is actually so low now that it is embarrassing me — I feel stupid!

Helen

Hi Helen

You’re embarrassed? Really?!

Helen, there are plenty of things you could be sheepish about, but this is not one of them.

Helen, stomp your hoof, you’re a rolled gold daddy ram!

Here’s another way to frame your situation:

You’re a savvy investor. The value of your property probably went up 30% over the COVID period, while you were still able to provide a secure roof over the head of your tenants who were likely going through a really stressful time.

Am I saying you should let them rent it out well below the market rate?

No.

What I am saying is that you renegotiate while also being considerate of the people who’ve been paying off your investment. If they’ve been good tenants and have maintained your property well, they’ve earned the right to sit down and make a fair deal with you. Good tenants are hard to find. Giving a little often goes a long way.

Baaa!

Scott.