A Guide to Raising the Rent for your Nevada Rental Property

The state of Nevada does not put a limit on how much landlords can raise the rent for their property in the landlord-tenant laws.

As a landlord, this lack of Nevada rent control laws means you can increase rent as much as you would like. However, landlords should be mindful to raise rent costs by a reasonable amount.

Further, landlords need to give their tenants 45-days’ worth of written notice before they implement a rent increase. This advance notice must be written and either hand-delivered to the tenants or sent by mail. If the tenants pay rent on a weekly basis, the landlord only needs to give them 15-days’ worth of written notice to raise rent prices.

In this post, we’ll cover the reasons landlords may want to raise rent prices and how to make the proper decision on how much to raise the rent by.

Understanding these things can help a landlord make better decisions when it comes to their Nevada rent increase so that their investment home can stay competitive on the local market.

Why Should You Raise the Rent?

Raising the rent in Nevada is one of the quickest ways to increase your return on investment. The resulting increase in monthly cash flow can also help you to make more investments in the future. Other common reasons for increasing rent costs include:

1. To stay competitive in the local market.

As a landlord, if you see that prices for comparable rentals in your local area are increasing, you may want to increase yours as well. Staying on top of new market trends will make sure that your properties stay competitive.

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2. To cover the cost of rental property improvements.

If a landlord decides to make considerable improvements or renovations to their investment home, this can justify a rent increase. Any serious rental improvement will impact your home’s value. Your tenants will be living in a more valuable residence which will, therefore, cost more to rent.

3. To cover the cost of bigger expenses.

During a renter’s tenancy or lease term, the associated expenses of owning an investment home in Nevada may increase. This may be for things like property management fees, taxes, insurance costs, or mortgage interest rates. By adjusting the rent cost and employing a rent increase for these situations, landlords can ensure they’re not running at a deficit.

How much should I raise the rent?

As a landlord, the proper amount to increase your rent in Nevada will depend on the underlying reason that you are raising the rent and relevant state law.

A landlord may find that determining the answer is challenging if the insurance fees increase, but the rental prices in the area are plummeting.

Let’s take a look at several of the ways landlords can approach this matter:

1. Do your research

Nevada landlords need to have a solid understanding of what’s going on in the rental market. Under rental laws, sometimes it’s impossible to just look at an increase in an associated cost of owning an investment home and drive up the cost of rent accordingly, especially if comparable rentals are lowering their cost of the rent in Nevada.

Talk to other Nevada landlords with comparable rentals in your local area. You may learn that they have been in a similar situation as you. Find out what sort of rent adjustment strategy they used to tackle the challenge.

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2. Crunch the numbers

Determining the right rent increase isn’t something that should involve too many emotions. It’s a statistical issue. Landlords need to pull all of the data relating to their decision and fill out a spreadsheet to make sense of the numbers.

The landlord should ask themself questions like how much minimum return do they expect on their investment? What are their annual expenses going to be? Every landlord should play out scenarios with varying degrees of rent increases to see how their finances would turn out. As a landlord, this will help you make a better decision for yourself.

3. Experiment with higher prices

Without rent control laws or a limit to rent increases in Nevada, you can begin by increasing rent costs as high as you think you can without driving away potential tenants. It’s always possible to decrease the price later on when you see that the market isn’t responding favorably to these rent increases.

Providing written notice in advance can also help you better understand tenant and market response.

How can I improve my property to increase the rent?

Making improvements is one of the most solid strategies for justifying a Nevada rent increase. If you’re considering doing this as a landlord, try one of the following strategies, always staying compliant with rental laws:

1. Reconfigure the property

The reconfiguration approach works best for large units. Nevada landlords may have the chance to divide their rental properties and create more units than before. In this case, it’s possible to enjoy renting to a mix of long-term and short-term tenants each paying different rent prices.

2. Offering new services and appliances

By including appliances such as washers, dryers, TV sets, and microwaves, a landlord can increase the monthly cost of rent for their properties. This will also upgrade their tenant’s experience, making them happier in the long-term. As a landlord, this will help you lower your vacancies and lower the risk of tenants breaking their lease agreement.

how to raise rent nevada

As a landlord, you could also bundle utility services like WiFi connection and cable TV. Bundling these services up as a package makes your tenant’s life easier and is easy to sell as part of the rent price.

3. Upgrading and remodeling

Making improvements to the physical space of your investment home is a tried and true method for establishing rent increases. While brand new fixtures may not always justify a significant rise in rent, big remodeling projects definitely do.

Extensive remodeling works when you have time between a tenant’s move-out and move-in. Just make sure that the improvements you’re making reflect the market conditions.

The prospective renters need to have an actual interest in a more upscale kitchen or bathroom to sign a lease agreement with a landlord.

Conclusion

Increasing rent prices on your Nevada rental home is a great way to boost your income and invest some extra money in new ventures, especially because you're not limited by rent control laws.

However, as a landlord, you should keep in mind the basic principles of a rent increase before committing to any changes or updating your lease agreement.

Every rent raise needs to have a real justification, and making improvements to your investment home is a solid reason to increase rent.

As a landlord, lease term ends and move-outs are a perfect time to adjust the rent, as you won't have to worry about providing a rent increase notice or dealing with price negotiations. If the market situation has changed since your last move-in, it’s time to adjust the price.

If you have more questions on raising the rent of your Nevada investment home, contact Evolve Nevada. We can help you determine the correct price for your investment unit.

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