As market forces shift and change, typically property taxes increase. In order to offset increasing tax costs, owners of properties and property management companies are forced to raise rent. For insight on Ann Arbor’s historical property taxes, click here.

In order to continually pass housing inspections, Baker Street is required to perform preventative and immediate maintenance on the properties we manage. Some of these maintenance tasks can be expensive upgrades to the property, such as a new water boiler or central air installation. To offset the costs of maintenance, Baker Street is required to raise rent. Luckily, rent increases due to maintenance improvements mean that the property is better and more efficient than before.

‍

This can vary, depending on where you live and how much the property’s rental rate has increased in the past few years. Typically, property managers and rental owners like to keep the current tenants they have, so not reducing or reducing slightly the rental rate is a good way to keep them interested in renting for another lease term. For a tenant renewing in the Midwest, they can expect a rental increase of somewhere between $0-400 (depending on the size of the property).

Some higher rental increases may occur, and this is usually as a result of continually under-marketing a property. As property taxes and maintenance costs increase, while still maintaining a lower rental rate, a property manager or owner may be forced to increase the rental rate by a significant amount to keep the property available for renters.

If you still have further questions about your specific situation, it is best to contact your property manager or rental owner.

‍