Tenant asking basis for rent rise?

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  • Piffy
    replied
    I bought a terraced house to rent out, the agent suggested 500 - 525 I suggested 575 and that is what it was rented out for
    Two years later the tenant left and the agent suggested 600 and I said 625 and that is what we have enquiries about.
    Ten years ago on business premises the agent suggested 8000 a year and I said try 9000 and that is what it was rented out at.
    I think sometimes agents pitch the rent low in order to get it rented and not have to deal with loads of enquiries and viewings.
    Am I wrong. ?

    Leave a comment:


  • landlord-man
    replied
    2% increase every year - so much simpler

    IF I had initially lowered the rent to get someone in then I'd make it 5% every year to catch up (10% if it needed to be).

    While I do my best to get along with my tenants neither owes the other any favours so I keep it professional.

    Leave a comment:


  • bobthebuilder2
    replied
    £100 /month is a HUGE increase. the tenant wasnt being rude, you were, for asking for such a big increase. wouldnt surprise me if the tenant took you to a rent tribunal to challenge it.

    Leave a comment:


  • ram
    replied
    To coolshades.

    If your employer said to you, we are reducing your wages ( disposable income ) by £ 320 per month. and don't be rude and ask why. nor it's no business of yours either to ask why
    Would you accept it ? ( the reason being that wages in the same industry in the area are £ 320 lower )
    the £ 320 is the same percentage as the £ 100 rent increase - both give you and your tenant less disposable income ( 16 % ) and ..


    Leave a comment:


  • patrick27
    replied
    I’m long overdue a round of rent increases also, but because of all the help and support our government has given us private landlords recently, I shall just let the tail wag the dog. Don’t want to rock my boat and fall into these muddy waters right now.

    Leave a comment:


  • jpucng62
    replied
    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!

    Leave a comment:


  • jase222
    replied
    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.

    Leave a comment:


  • Jon66
    replied
    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.

    Leave a comment:


  • ram
    replied
    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.


    Leave a comment:


  • Jon66
    replied
    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?

    Leave a comment:


  • Hudson01
    replied
    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.

    Leave a comment:


  • jpkeates
    replied
    Originally posted by coolshades View Post
    Tenant asking basis for rent rise?
    What is the basis for the increase?

    Leave a comment:


  • MW1985
    replied
    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.

    Leave a comment:


  • nukecad
    replied
    One line question, one line reply:

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

    No need to justify any more than that.

    Leave a comment:


  • Hudson01
    replied
    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.

    Leave a comment:

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