Twelve monthly rent reviews are part three of the video series covering “Four Core Fundamentals of Property Management.”

So why do annual rent reviews?

1️⃣ Own a rental property; you are running a business.
2️⃣ Cash flow is king.
3️⃣ Avoid large rent increases.
4️⃣Fair to all parties. 

The short video explains why twelve monthly rent reviews are a must.


If you own a rental property, you’re running a business, and cash flow is king in any business.

Unless you’re in a really good position, have owned the property for a long time, and have significantly reduced debt, you need that cash flow coming in.

You’ve got insurance costs that go up every year. You’ve got rates that go up every year. You’ve got to be covering for repairs and maintenance. And on your loan, if interest rates go up, you must cover that.

So, it’s really important to keep that cash flow coming in, as you want to avoid large rent increases.

I’d suggest, even if you’re in a position where you don’t have to increase the rent, increase it slightly in a smaller increment rather than waiting three, four, or five years.

Then something happens, and you may have to adjust those rents and bring them up to market rent. That’s not fair on your tenant, either.

That’s a huge jump for them. Also, you could have three or four houses in a multiple dwelling and, say, two-bedroom units or something similar.

And you’ve got one tenant who just moved in at market rent.

Next door, you’ve got a tenant who’s been there three, four, or five years. They might have only had one increase in rent at that time. That’s not fair to both parties, either.

Market rent is the amount a landlord might reasonably expect to receive, and a tenant might reasonably expect to pay for a tenant’s. The rent must be comparable to the type of property.

So, if it’s a three-bedroom, one-bath home, you must compare apples with apples in similar suburbs and streets. Now, if the market rent hasn’t increased, and when, don’t increase it. That’s not fair or reasonable, either.

Making life easier for landlords is what we do.

Recommended Posts

No comment yet, add your voice below!

Add a Comment

Your email address will not be published. Required fields are marked *