It’s no secret that the Fort Lauderdale home sale and resale market is as white-hot as it’s ever been. New listings are going under contract faster than ever – sometimes in days from listing –  frequently at prices exceeding the asking price. Bidding wars are common.

That leaves many prospective home buyers priced out of the market. For them, the only option is the rental market.

If you’re a residential rental property owner like me, you’re in as enviable a position as a home seller. But could your position be even better?

In a recent episode of Tuesdays with Gary, we discuss the situation in which residential property owners find themselves in today’s hot Fort Lauderdale real estate market. Home sellers aren’t the only ones benefiting here.

Imagine you have a long-term tenant. They’re quiet, with no hassles, few – if any – maintenance requests, and their rent is paid like clockwork each month. You know – the type of tenant you’d clone if you could.

But are you taking that situation for granted, at the expense of your bottom line?

When was the last time you reviewed your rental agreements? If a tenant has been with you for a few years, have you raised the rent commensurate with increases in the area rental market? Your insurance and taxes certainly have increased. Has your rent gone up in kind?

Sure, you don’t want to be greedy and raise rents just because the market is spiking. After all, there’s much to be said for a problem-free tenant.

But you bought your property as an investment. Tenants expect annual increases. The current reality presents the ideal situation to reassess your own position.

In a recent situation, a landlord had a single-family home he had rented to a tenant several years ago. Even as the market heated up, the owner kept increases to a minimum. The tenant was as problem-free as they come.

But the time came for a business decision. After years of being a gracious landlord, the local rental market spiked. He realized he could get upward of 75% more rent. Kindness is one thing. Financial foolishness is bad business. He informed the tenant, who was on a month-to-month lease, of the intended increase.

The tenant understood and ultimately moved out, gracefully and without issue.

The landlord found another tenant eager to take the property at the new rate. She’s turned out just as good a tenant as the previous one was.

As with many contracts that renew on a regular basis, whether employment agreements (another area that’s put parties – in this instance, employees – in an enviable situation) or rental leases, it’s important to review them well before the anniversary date.

Explore the market. Visit residential real estate sites to see what comparable rental properties are fetching in the current market. A price hike might be warranted; how much depends on market conditions and the value of the tenant, as well as any increases in the carrying costs of owning, maintaining, insuring and paying the taxes on the property.

You don’t want to gouge a good tenant. You can save a high spike for the next tenant, if market conditions prove fortuitous.

However, this might be an opportunity to maximize your revenues. We bought these properties as an investment, maybe to build our estate portfolio, to help pay our own costs of living, or to eventually fund our retirement.

Make annual lease review a habit. If you need to, put a reminder in your calendar. It’s that important.

In today’s scarce real estate market, the realities of “supply and demand” are creating a favorable business climate for rental property owners like us. But they’re only to our advantage if we take advantage of them.

If you need help reviewing your lease, bringing your rents in line with the local market, or any other component of your rental business, give me a call. Let’s get your rental rates where they should be and your business – and future – in the best possible position.

Gary Lanham is team leader for the Gary Lanham Group at Coldwell Banker Real Estate Fort Lauderdale Beach Office. To learn more, visit www.instagram.com/garylanhamgroup or call 954-695- 6518