Tenant asking basis for rent rise?

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    Tenant asking basis for rent rise?

    we (couple) are new landlords and have just one property that is let out. we have let it out to a couple who have been in the property since July 2019.

    we didn't increase the rent in the pandemic but have now suggested that we raise it by 100/month from Aug. this proposed rent will still be in the lower end of the range for similar properties in our area.

    we were surprised when our tenant asked what the basis for the rent rise was. that was pretty much all they asked.

    the one liner feels rude and we are wondering what business is it of theirs to ask.

    just seeking advice here.

    #2
    I'd just tell tenant that I'm a greedy landlord. Feels most honest to me.

    (How many landlords reduced rents when interest rates went down - IMHO very few...)
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    Comment


      #3
      Originally posted by coolshades View Post
      this proposed rent will still be in the lower end of the range for similar properties in our area.
      Think you have answered your own question if this is the reason why your increasing the rent.

      Comment


        #4
        Saying £100 means nothing.

        what is it as a percentage rise?

        Comment


          #5
          As long as it's not a stupid amount percentage wise, and it's still in line with current rents in the same area then that's your reason, just be careful that you don't shoot yourself in the foot and all of a sudden get lots of calls to fix things that maybe they would have done themselves in the past.
          Can you not increase over a period of time to make it seem ok for both parties, always better to have a happy tenant that won't cause you grief and always pay the rent, rather than an awkward one.
          At the end of the day though it's your property, this is only my opinion.

          Comment


            #6
            As said above, you have answered your own question, they may not be aware that the rent they pay is below the norm for that type of property in the area, the majority of tenants simply get on with their life and have no clue how much the rents have risen over the last year. If they are not happy they have the freedom to seek a home elsewhere.

            Comment


              #7
              One line question, one line reply:

              Basis - because it's time for a rent rise.

              No need to justify any more than that.

              Comment


                #8
                Reply to the tenants that your outgoing costs have increased and upon review of the rental rates in the area, you need to financially bring their rent in line with others in the area. Just make sure that your property is in line with others in the area who are charging more.

                Comment


                  #9
                  Originally posted by coolshades View Post
                  Tenant asking basis for rent rise?
                  What is the basis for the increase?
                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                  Comment


                    #10
                    I am considering an increase in my rents simply because they are now falling a little too far behind the current rate in the market, nothing more really, i do not want them to get too far behind and as we all keep being told this is a business we are in..... so as a business i want to maximize my profits and get the best return on capital employed.

                    Comment


                      #11
                      How about extra and increased costs for electrical safety certificates, increased costs for gas safety certificate, increase in plumbers rates, general increase in materials, increase in service charges and products necessary to keep in a good condition etc etc.

                      Basically due to brexit and covid costs for everything seem to have escalated. Anybody else noticing this?

                      Comment


                        #12
                        I would suggest that £ 100 after 2 years is way too much.
                        £ 50 would I think be more accaptable to ANY tenant.
                        Then increase £30 each year after that.

                        If you want them to leave, then incur up to 2 months void while you carry out any essential repairs and wait for a new tenants to arrive, you will lose at least 2 months rent. Plus agents costs advertising for new tenants.
                        Lets assume the current rent is £ 650 per month, then 2 months lost rent is £ 1300, Plus agents = £ 1500.
                        but losing an extra £ 100 per month over 1 year is £ 1200. you will lose more if you up the rent £ 100 and they leave, than ask for £ 50 increase from August and they stay.

                        Do the maths.


                        Comment


                          #13
                          Originally posted by ram View Post
                          I would suggest that £ 100 after 2 years is way too much.
                          £ 50 would I think be more accaptable to ANY tenant.
                          Then increase £30 each year after that.

                          If you want them to leave, then incur up to 2 months void while you carry out any essential repairs and wait for a new tenants to arrive, you will lose at least 2 months rent. Plus agents costs advertising for new tenants.
                          Lets assume the current rent is £ 650 per month, then 2 months lost rent is £ 1300, Plus agents = £ 1500.
                          but losing an extra £ 100 per month over 1 year is £ 1200. you will lose more if you up the rent £ 100 and they leave, than ask for £ 50 increase from August and they stay.

                          Do the maths.

                          Yes, agree with above. £100 a month increase is huge.

                          Comment


                            #14
                            I have a tenant who pays £850 pcm and on Friday I had a email from agent saying the rents in the area are £1050 and the tenant should now be paying close to that, I emailed back saying perhaps in 2-3months time increase it by £30 as £225 extra is ridiculous.

                            Comment


                              #15
                              I don't believe tenants pay much attention to market rent rates once they are in a property so I imagine that £100 is a big shock. That is why I review my rents every year and only ever increase the rent by £25 pm.

                              I have only ever had one tenant ask the same question as the OP (over a £10 rise!) and I told him that my costs were rising so his rent was going up!

                              Comment

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