Rent increases.

[bobcat]

Just to add I mean £10 per month increase each year, not £10 increase every month!

[bobcat]

Thanks all for the input. It does show everyone has a different view on it, what I agree is the rent has to increase over time it's the specifics such as the amount and timing that need to be considered. I will go ahead and discuss with the tenant on the basis of a small increase on a regular basis, most likely £10pm until we get to a reasonable level, given inflation I don't think we will ever catch up to market rates though!

[Berlingogirl]

I recently advertised a house at somewhat less than the market rent, £675 instead of £725.
this meant alot of interest, but too many of them were on benefits or needing a guarantor. This also meant that I couldn't show everyone around (30 people interested in 3 days of marketing and 80 in total by the time the new tenant moved in)

My experience is that a low rent neither traps people or makes them believe you are a soft touch.
usually they separate and decide it's too big for one person.

My current intention is to put up the rent to £700 ?in a year, and then go at inflation plus 1% rounded up to the nearest fiver, every year after.

I also find that a lot of enquiries come from people who rely 100% on benefits or need a guarantor. I'm just upgrading a 4 bed and will be asking rent at the rate the LHA was in December 2010 before the LHA rate was cut. Can't get fairer than saying the rent is the same as 9 years ago.

[Berlingogirl]

I'd increase it. I doubt if the tenants would be surprised at a rent increase after 4 years. At some point you are surely going to want to put the rent up or do you intend to keep the same forever? £10 isn't a lot and is a fair amount imo.

[Logical.Lean]

I recently advertised a house at somewhat less than the market rent, £675 instead of £725.
this meant alot of interest, but too many of them were on benefits or needing a guarantor. This also meant that I couldn't show everyone around (30 people interested in 3 days of marketing and 80 in total by the time the new tenant moved in)

My experience is that a low rent neither traps people or makes them believe you are a soft touch.
usually they separate and decide it's too big for one person.

My current intention is to put up the rent to £700 ?in a year, and then go at inflation plus 1% rounded up to the nearest fiver, every year after.

[mariner]

I might wait to see what effect the Budget and Brexit may have on the economy.
Keep any rent increase to max 5% p.a.

[MdeB]

work out inflation over the period, and if your increase is less than tha, then put it in the letter for comparison.

[DPT57]

My view is that you do tenants no favours by charging below market rent as they just develop unrealistic expectations and feel trapped when they realise they cant afford to move but need to. They also see you as a soft touch and that's not a good look for a landlord. I would start to increase each year by 3-5% to bring it gradually up to market rent.

[ash72]

My advice would be to seriously think about increasing, my experience is have a tenant paying on time and looks after the property is worth £10 pm increase. The market has now changed for T's therefore with fees now removed they can move more freely without thinking of the additional costs. Also if your T's decide to leave you may have to re-paint the property in order to bring it back up (if necessary) plus the period while you find new T's.

Can their income support the increase? If so, I would then prepare them by giving them some time to look at the market and make their own informed decision on the bargain they currently have (and potentially still have), I would also not increase annually, as they may feel each year the rent is now increasing, I would increase it by they factors above and what you require, without seeing the info. I would suggest £40, it's still lower than any others (so avoids them from the expense of moving), and negotiate from there.

[bobcat]

Hi everyone.
I need some advice about how best to approach rent increases. I own a property with good tenants who look after the house, they have been in the house for about 4 years. The market rent is around £675 but I am charging £595 so £80 less a month partly because I charged a bit less to begin with and have not increased the rent in 4 years. I need to increase the rent but want to retain the good tenant and be reasonable. I am not after maximum rent and happy to strike a balance between rent and someone who looks after the property and is likely to stay long term. I am thinking to increase the rent by £10 a month from 1st of January and then let them know it will increase by £10 every January. I don't think the increase is unreasonable and think increasing it by £10 each and every year will keep up with cost increases. It does mean that I will never catch up with market rent as I am already a way behind. Any advice on the best strategy, do others increase in big chunks or by a fixed amount each year?? Any help would be appreciated. I know I will need to issue a section 13 notice to formalise the increase. By the way the house is in the north so rents don't increase a huge amount on a yearly basis.