Raising rents over time

Raising rents over time happens especially when people quit buying homes. People have got to live some where. If the real estate market is down, another area has got to be hot.

Because the single family home market is slower more people are renting than buying. Because there are only so many rentals available the rents are going up because the demand is higher.

When I first bought by trailer park the rents were $150 per unit. I knew before I bought the park that the rents were $20 per space to low. 2 years later I raised the rents another $10 per space times 18 spaces.

What effect did this have on the park? Assuming costs stayed the same, raising the rents by $30 per space times 18 comes to $540 more per month or $6480 per year.

A trailer park cap is usually around 10% and so I just raised the value of the park by $64,800.

The velocity of money in the multi family unit market is so much faster.

Thanks Burke Bennett
http://www.seidahohomes.com
208 589 5599
burkebennett@hotmail.com