What are the guidelines for raising rent? I can see it is pretty much a 30 day notice, but what percentage are you allowed to increase rent by in general (max amount)? Also, I am drafting a new lease, do I have to include a clause that states I'm allowed to increase the rent in the future, or is this a given (month to month lease)? Thanks again for sharing your experience and knowledge!

Hello teresalee:

Arkansas is not rent controlled. Therefore, market forces should dictate the rent you can charge. You do NOT have to include a clause about raising the rent. That's what month to month means.

I have three questions for you, though. How did you become a landlord without knowing the landlord business? Why didn't you invest in something that you know about? Why are YOU drafting a lease, when there are off the shelf varieties that will protect you FAR better than anything you could write yourself?

excon

Dear excon,
I became a landlord about 3 years ago and never had a problem tenant before, I've always had a good relationship with them.
I'm just coming out a very bad experience with a difficult tenant who knew how to play the system and some problems did arise from my 'off the shelf' form, so I am seeking to modify (or draft) the one I was using to cover these new problems, and hopefully avoid more in the future.
I have found many of the more experience landlords have great ideas for clauses that can't be found anywhere else.
I am sorry if my inexperience offends you, but I feel that the only dumb question...

My dear teresalee:

I didn't say your questions were dumb, and I'm not offended by them. I frankly think, YOU are the one offended by my questions.

Nonetheless, my point about business is valid. I'm a pilot. I'm a pretty good pilot too, when things are going great. But, if things always went great, then anybody could be a pilot.

Business is the same. As long as things go great, anyone can be a landlord. But, the people who MAKE money in the landlord business, absolutely know what to do when things don't go so good. As you should be aware, ONE problem tenant, can blow your entire investment.

Modifying is different than drafting. Modifying is good - drafting is bad. Plus, I'm heartened that you have joined your landlord group, and that you've asked questions here. Certainly better late than never. But there is no question that you should have known ALL this stuff BEFORE you became a landlord. That's just so. I'm not mad at you, honest.

excon

Dear excon,
Sorry I'm so sensitive, and I'm glad you're not mad at me for my ignorance (which is, of course, different than stupidity) Arkansas has a great void when it comes to information about landlord/tenant laws making it confusing, so I'm trying to seek help on these forums from experienced landlords. Locally, I've received several different answers for seemingly simple questions, so I keep asking...
As to why I 'invested' without learning more, I definitely feel I'm on the opposite end of the spectrum from you. We bought a small tax house several years ago, fixed it up pretty cute and rented it. Overall investment however was very small.
I have no valid reason for not finding out all there is to know about being a landlord before I jumped into it, so if you'll pardon me, I will go slink off in the corner now...

Teresalee,
Ignore those that will chastise you for not knowing and having the common sense to ask. There are plenty of books and websites where beginners as well as seasoned LL's can go and share information. IM me and I will point you to one. BTW, AR is one of the best states that you can be situated in when being a LL.

Check with your attorney to see what the laws are in your state governing these issues.