Max Householder Point is, you could have the perfect mainstream "diversified" portfolio of stocks/bonds, large cap, small cap, every equity sector, etc. and still get run over completely if we shift to another 25-30 year inflationary "era" like the 1970s where "the death of equities" was declared because stock returns were so bad. Or look at Japan's lost decades where the Nikkei peaked and only just now, almost 30 years later just now reached that peak again. So anyhow, my main point is the mainstream "diversification" narrative is COMPLETE bs and unless you're a sophisticated trader it's very difficult to trade commodity trend or volatility. To access hedge funds that run a Dragon Portfolio type investment vehicle, you need to be accredited or have significant funds to put to work. Basically, for a retail (< $1m net worth) investor, you're way better off studying to understand 1 or 2 investment strategies (or own a small business) inside and out, develop a process to buy/sell/hold them that shows demonstrable results over time that meet your goals, and just bang away at them and forget about everything else (please turn off CNBC!!) until you get to the higher level where you can afford to pay for actual investment advice and implementation. Edward Jones or whoever DOES NOT provide investment advice, they're just relationship managers who keep you invested in products that make THEM rich, not you. Just my $0.02
How to increase rents without losing good tenants?
mattpayne Matt Payne last edited by
Are there any good tricks or advice about how to increase the rent amount on tenants who are exceptionally good tenants?
I've got some tenants in one of my properties that I really don't want to lose, but they're also paying rent that is severely under-market.
Part of me wants to just let them keep paying a low rent amount, but the businessman in me can't get over the fact that I'm leaving serious money on the table each year and any other normal tenant in my market would gladly pay me a lot more for the same space.
What should I do? Should I bump up the rent or just let them stay put?
If I do increase the rent, is there a certain threshold by which I should do it? And is there a way I can explain the increase in a way that will prevent them from getting angry and moving out?
If anyone else has experience with this, I'd love to hear what has worked for you.
dvucak Dado Vucak last edited by
Hey Matt Payne you should check out the BiggerPockets podcast show #448. The guest, Dion Mcneeley, talks about how he uses his “binder strategy” to get tenants to sign longer leases with higher rents, they THEY suggest actually.
I was listening to that last night and it just blew my mind. Such a simple strategy - I can definitely see how it works! It was brilliant!
Matt Payne I was looking at a property last year with a tenant who was paying about 50% of the market rate for rent. This was a good tenant as well (they were taking care of everything and were very hands-off) and I wasn't in a hurry to lose them.
The deal fell through, so I can't say for sure if this would have worked out in my favor... but if it had panned out, my plan was to increase their rent by 10% each year until they were paying full market rents, and I was going to be very forthright about it (not hiding the fact that their price was going up). It seemed like a good idea to me, but again, I can't say for sure if it would've worked out the way I hoped.
Anyway, just one idea to consider.