One good thing came out of the pandemic: everyone got a 20% raise, according to CBS News. Except, many people didn't enjoy it. Rent increased 30% during that same period.
This presents quite a dilemma: landlords have to raise rent to keep up with property taxes and mortgages, but wages haven't kept up with rent. It sounds like the perfect storm for arguments and bad feelings. How much can a landlord raise rent without going overboard?
Today, we discuss it all. Rent increase regulations, tenancy laws, and other considerations in Hendersonville, NC. Don't make an adjustment until you've read this landlord rent guide.
How Much Can a Landlord Raise Rent
So the big question is this: how much can a landlord raise rent in North Carolina, legally speaking? The answer is as much as they want. Some states (known as rent-controlled states) put a hard increase limit, but North Carolina does not.
So in theory, a landlord could raise rent by 10%, 20%, or even 50%. Doing the latter would, naturally, raise some eyebrows. Yet the landlord would not be held liable in any court of law.
On the one hand, this seems like good news. If you've had a tough year, then nothing is going to stand in your way when choosing a price that feels right to you. However, don't be so quick to pull the trigger.
Turnover May Increase
When it comes time to collect rent for the new year of a lease, you may find the tenants have bailed out instead. Apartments are a lot like jobs these days. People change theirs every couple of years to get a "raise."
It's common knowledge that the first year of rent is the cheapest. Staying for two years or longer means the rent is only going to increase steadily. The economic solution is to apartment hop, which most people happily do.
Impact of High Turnover
So while you may make more money in the short term by raising rent, it's going to hurt your bottom line. Between each set of tenants there will be vacancies. Even if said vacancies are short, new tenants will pay lower starting rent, so it's less money overall.
Expect Fewer New Tenants
Many landlords do rent analysis and raise the starting rent to cover for vacancies. Doing so creates a new problem: longer vacancies. Even with pickings as slim as they are, tenants are going to skip your property for more affordable options.
Prepare for Poor Tenant Relations
Even if the tenant stays, think of how that will impact your relationship. Regardless of what the law says, that tenant has every right to resent you raising rent when times are hard. Imagine how difficult things could be when you ask for their full cooperation.
Work with PMI
How much can a landlord raise rent in 2025? In Hendersonville, North Carolina, a lack of rent control leaves it up to you. However, high turnover, a lack of tenants, and negatively affected relationships don't make it worth going to an extreme.
PMI Blue Ridge is your friend in the NC property market. Look at our testimonials, and you'll see that we get high marks for professionalism, responsiveness, and friendliness. Use our free rental analysis to find out how you can maximize your property investments.
