Raising rent is a delicate balancing act for landlords. Increase it too much, and you risk losing great tenants. Raise it too little, and you leave money on the table. If you're wondering how to increase the rent on your property while staying competitive, this guide will show you the best strategies to boost rental income without creating vacancies.

1. Know the Market: What’s the Right Rent Increase?

Before increasing rent, you need to understand how much other landlords in Des Moines are charging for similar properties. Here’s how to check:

✔ Use Rent Estimator Tools: Websites like Zillow, Rentometer, or Apartments.com can give you an idea of rental rates in your area. 

✔ Check Local Listings: Browse Craigslist, Facebook Marketplace, and rental sites to compare pricing. 

✔ Talk to Local Property Managers: They can provide insights into competitive rates.

✔ Rental Estimate Process: Follow directions in this youtube video to self assess the rental market specific to your own property!

Pro Tip: If your rent is already at the high end of the market, a large increase may push tenants away. Instead, consider adding value (covered next!).

2. Make Strategic Upgrades to Justify a Rent Increase

Tenants will pay more for a better living experience. Small, cost-effective upgrades can justify a rent increase without making tenants feel like they’re overpaying.

Affordable Upgrades That Increase Rental Value:

✅ New Paint & Fixtures: A fresh coat of paint and modern light fixtures make a unit feel brand new.

✅ Updated Appliances: Stainless steel or energy-efficient appliances add appeal.

✅ Smart Home Features: Adding a smart thermostat, keyless entry, or security cameras can justify a higher price.

✅ Washer & Dryer: If space allows, an in-unit washer/dryer can increase rent by $50–$100 per month.

Pro Tip: Instead of a drastic rent increase, spread out small increases over time as you make upgrades.

3. Understand Iowa’s Rent Laws Before Raising Rent

Iowa law allows landlords to increase rent, but you must follow proper notice periods:

• Month-to-Month Leases: Must provide at least 30 days' written notice before raising rent.

  
  

• Fixed-Term Leases: Rent increases can only happen at lease renewal unless otherwise stated.

  
  

Pro Tip: Be transparent with tenants about why the rent is increasing—this builds trust and improves retention.

4. Offer Incentives to Offset Rent Increases

To reduce pushback, provide added value when announcing a rent increase. Here are a few ideas:

✔ Upgrade Amenities: Offer covered parking, storage units, or better landscaping.

✔ Flexible Payment Options: Allow online payments or split payments for convenience.

✔ Loyalty Discounts: Offer a small discount for tenants who sign a longer lease (e.g., a 2-year lease with a lower annual increase).

Pro Tip: When sending a rent increase notice, highlight the benefits tenants are getting along with the new rate.

5. Switch to a Utility-Inclusive Rent Model

Some tenants prefer predictable expenses. Instead of a straight rent increase, consider bundling utilities into the rent.

• Example: If rent is $1,200 and the tenant pays $150 for utilities, increase rent to $1,350 and cover utilities yourself.

Pro Tip: This works best if you negotiate bulk utility rates or install energy-efficient appliances to reduce costs.

Read More: 

• How to Sell Your Rental Property: 5 Crucial Tasks to Do 1 Year in Advance

• Should I Sell My House or Rent it Out? The Pros and Cons for Homeowners

• Des Moines Ultimate Blueprint: How to Sell Your House Step-by-Step

• Myth Busters: 5 Common Home Selling Misconceptions Debunked

6. Communicate Rent Increases the Right Way

How you deliver the rent increase can make or break tenant retention. Follow these best practices:

✔ Give Plenty of Notice – Tenants appreciate time to adjust their budget.

✔ Explain the Increase – Show how costs (taxes, maintenance, etc.) have gone up.

✔ Offer an Alternative – Give tenants the option to lock in a lower rate by signing a longer lease.

Pro Tip: If a long-term tenant is struggling, offer a phased increase (e.g., $50 now, another $50 in six months).

7. Optimize Your Tenant Screening to Attract Higher-Paying Renters

If you struggle to get tenants to pay market rates, the issue may be tenant selection. Here’s how to attract renters who are willing to pay more:

• Upgrade Listing Photos: High-quality images attract more applicants.

  
  

• Highlight Key Amenities: Showcase features like parking, in-unit laundry, or proximity to schools and workplaces.

  
  

• Require Strong Financials: Set minimum income requirements (e.g., income must be 3x the rent).

Pro Tip: By setting higher tenant standards, you attract renters who can afford premium pricing.

How to Increase the Rent on Your Property Without Losing Tenants

Increasing rent doesn’t have to mean losing tenants—when done strategically, it can improve property value, tenant experience, and long-term profitability.

Quick Recap: How to Increase Rent the Right Way

✅ Check the Market: Make sure your pricing is competitive. 

✅ Justify the Increase: Upgrade amenities or services. 

✅ Follow Legal Guidelines: Give proper notice and be transparent. 

✅ Provide Added Value: Offer incentives to keep tenants happy. 

✅ Screen Tenants Carefully: Attract renters who can afford higher rates.

Need help managing or selling a rental property in Des Moines? I specialize in helping landlords maximize rental income and find the right tenants.

Contact me today to learn how I can help you!