@Clinton, as per your question:
- “When doing the initial increase, do you let the tenants know that you will be again raising it in one year to a specific amount (so they know you are being kind in not initially raising it all of the way) or just make what appears to be two separate increases?”
I agree with @jhutson:
- “Just rip off the bandaid and the full increase to bottom of market rates.”
In our stable MHP we raised rents in multiple steps (tiny amounts not trying to offend them) just to get the rents to a little below market.
I agree fully with @jhutson that:
- “Doing it in two stages just creates two events of moaning and groaning instead of one.”
When we raised the rents we wrote a letter to the Tenants indicating some of our expenses to justify the rent increase.
Honestly, the Tenants could care less what our expenses were.
One Tenant told me that the MHP expenses were not their concern.
What matters to the Tenants is the price of other MHPs (we did list other MHPs Lot Rents that were/are still much higher).
If the Tenants can find the same value of your MHP for a lot less Lot Rent in another Park, the Tenants “might” consider moving their Mobile Home.
However, moving a Mobile Home is not cheap and is not easy, so they have to be very determined to do this.
If the Tenants cannot find the same value of your MHP for a lot less Lot Rent in another Park, the Tenants might moan and groan a bit (some will moan and groan as it is in their DNA) but they will not be moving their Mobile Home from your Park.
We wish you the very best!