The Ethics of Rent Increases: Profit vs. People

As a landlord, profit is your objective. But people are more important. Here's why ethical property management isn't just the right thing to do—it's better business.

The Balance: Profit and Ethics

Let's be honest: you're running a business. Profit matters. Your properties are investments that should generate returns. But here's what separates good landlords from predatory ones—understanding that your tenants aren't ATMs, they're people.

When you treat housing as purely a financial transaction, you lose sight of the fundamental truth: you're providing someone's home. That comes with responsibility.

Why Rent Increases Happen

There are legitimate reasons to raise rent:

•Property taxes increased and you need to cover the additional cost
•Insurance premiums went up significantly
•Major improvements were made that genuinely increase the property's value
•Market rates have changed substantially over several years
•Maintenance costs have risen with inflation

These are understandable. What's not okay is raising rent simply because "the market will bear it" or because you want to squeeze every last dollar out of your tenants.

The Case for Kindness

Here's something predatory landlords don't understand: ethical treatment creates better long-term outcomes.

Good tenants are valuable

Someone who pays on time, takes care of your property, and doesn't cause problems is worth far more than an extra $100/month. Vacancy costs, turnover expenses, and screening new tenants add up fast.

If you have a tenant who's been reliable for years, raising their rent aggressively because "you can" is shortsighted. You might gain a bit more monthly income, but you risk losing someone who treats your property like their own.

Be Transparent

If you need to raise rent, explain why. Don't just send a notice—have a conversation.

✓"Property taxes went up 8% this year, so I need to adjust rent by 5% to cover the increased costs."
✓"I've replaced the HVAC system and upgraded the kitchen appliances—these improvements add value for you."
✓"Rent hasn't increased in three years, but maintenance costs have gone up significantly with inflation."

Transparency builds trust. Trust builds better relationships. Better relationships mean tenants who stay longer and take better care of your investment.

Be a Partner, Not a Predator

The housing market is tough right now. Rents are high, wages haven't kept pace, and many people are struggling. You're in a position of power. How you use it defines the kind of landlord—and person—you are.

Ask yourself:

•Is this increase necessary to maintain the property and my business?
•Have I been transparent about why rent is going up?
•Am I giving adequate notice so my tenant can adjust their budget?
•Would I think this was fair if I were in their position?

If a tenant is struggling, consider working with them. Maybe they can take on minor maintenance tasks in exchange for a rent reduction. Maybe you freeze rent this year and adjust next year. Maybe you set up a payment plan if they're going through a temporary hardship.

These aren't signs of weakness—they're signs of good business sense.

The Bottom Line

Yes, you need to make money. Yes, your investment should generate returns. But if your strategy is to maximize every dollar at the expense of your tenants' financial stability, you're not building a sustainable business—you're being predatory.

The best landlords understand that ethical treatment and profitability aren't opposites—they're complementary. Treat your tenants with respect, be transparent, and remember that you're not just managing properties. You're managing people's homes.

Be kind. Be transparent. Be ethical. That's how you build a property management business worth having.