Do You Put the Rent Up every year?

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    Do You Put the Rent Up every year?

    So I have never put a rent up during a tenancy because my turnover is usually about 2.5 years. I put them up when I get a new tenant. Now I finally have what could be a potentially long term tenant. Our agreement states min 2%. Should I be putting the rent up every year? It would seem unfair to put it up more than the market rate. Views please.

    #2
    My rents are only increased if there has been a rise in the local rents. I would never put up rent unless there has been an increase. Why would you, you want your tenant to stay a long time. Less voids normally equals higher profit.

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      #3
      Depends. Have been known to reduce rents (usually agree a reduction requested by otherwise good tenant).

      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...

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        #4
        Your post could have been written by me, i am having the same thoughts right now......my turnover has been like yours but now i have two tenants who will be here for the foreseeable, i will keep them just below market value, but if i keep as i have been and do not increase them then they will get too far behind, i am considering increasing them every 2 years.

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          #5
          I like to give a tenant a discount, ie if the market rent is 1000pcm on average x12 months I let the tenant have a month free it's a rough calculation I use and I been a landlord for 30years and it seems to work sometimes I increase the rent every 18months as rents can rise and you end up playing catch up rent.

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            #6
            Depends on the tenants, probably on average I increase every couple of years to stop the rent falling too far behind market rate but I generally give one good tenant a month free at Christmas each year

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              #7
              Rents where I let are pretty static, or at least they have been until recently.

              I would suggest that your tenancy agreement shouldn't require or limit an increase.
              Any constraint on either side is unnecessary, no one can see the future and there's nothing gained by putting limits where they're not necessary.
              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).

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                #8
                I'm in the lucky situation that I don't need to, so I don't.

                It does mean that I am well below market rates on some of my properties, but as I start them on below market rates anyway it's not a problem for me. My aim is to give my tenants the possibility of saving more for themselves so they can hopefully get a property of their own in the future.

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                  #9
                  I let my properties to a new tenant in excellent condition and slightly higher than the going rate but above LHA. I've not increased any of my long term tenants' rents for over 5 years which means I let at 575 but the going rate is now 625. I'm thinking it's time to put the rent up a bit - I keep thinking about it but haven't yet.

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                    #10
                    I increase 2% every year and if the market dictates then a higher % at tenancy change.

                    My tenants receive nearly £400 PER WEEK accommodation allowance as part of their job (on top of industry leading pay rates which can see them earning £90k a year)

                    My studio rents are £120 per week - they are maintained to a high standard and my tenants are more than happy with the 2% increase each year (they've probably had a 7% allowance increase anyway lol).

                    When my next unit becomes empty, I'm going to try an extra £30 per week taking it to £650pcm for a studio/bedsit.

                    I'm confident of having such tenants for the next 5-7 years after which rents will probably fall back again.

                    Make hay while the sun shines !!!
                    My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

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                      #11
                      I think the only real basis for setting rents is local market forces. That means that while rents might be reviewed every year, they dont necessarily increase. My rents in London haven't increased for 4 years because the market has been static. In the last year local rents have decreased and I've been forced to lower rents with change of tenant.

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                        #12
                        I review rents every year - and they usually go up (in line with market rents but discounted a bit for good / longstanding tenants).

                        The problem with not reviewing them regularly is that you can get quite a long way behind the market level and tenants do not like large rises!

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