I am a landlord and have been letting a property out to tenants for £600 PCM for 4 years with no rent increases, i have not had my eye on the ball for 18 months and have just found out that very similar properties in the area are going for £800 PCM. What is the maximum i could raise the rent at the end of the tenancy if they signed for another 12 months? Also could i ask the tenant to leave at the end of the tenancy and rent it to a new tenant for £800 PCM? Or is that option illegal. Thank you in advance for any replies.
Rent Increase
Collapse
X
-
There is no maximum you can raise the rent to from a legal point of view.
There is obviously a limit to what the tenant can afford.
You can ask the tenant to leave at the end of a tenancy period, but they don't have to (which would compel you to go to court to repossess) or, if your tenancy allows for it, you can let the lease become periodic and impose a new rent using a section 13 notice.
Decent rent paying tenants are a great thing to have and most people couldn't take a £2,400 per annum jump in rent.
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).
-
But you'd still be doing yourself out of £1,800 per year.
You're going to waste another 3 years after that getting to todays market rent of £800 - which by then will probably be £900+
You're missing out on a few nice holidays or the cost in redecorating, recarpeting your investment for "free"
Add to thst, you are helping to keep the LHA rates low in your area too. But I guess the rest of us taxpayers can thank you.
So, only one losing is you then.
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
Comment
-
Things have been very volatile lately, I suspect partly due to the uncertainty amongst students over the summer having a knock-on effect.
Rents were much lower a couple of months ago, then shot up near the start of term, they may not stay as high.
You may get £800, for 3 months, then a void, then a refurbishment, then a new tenant at £700, who doesn't pay their rent and trashes the place...
Or you may get £800 a month going forward, and everything is fine, who really knows?
Comment
-
It is a paradox but you will make more money as a landlord in the end by charging less than the best open market rent. This is because your tenant will tend to stay put, so less void time, less refreshing the property between lets, less default, less wear and tear with people moving in and out. Also if the tenants think they are getting a damned good deal, in my experience they are less inclined to take the P155. Ive got a few tenants holding over as assured periodic tenants for in excess of ten years
Comment
-
So the Country is NOT drastically short of rental properties after all then.
Maybe just me being lucky then as i have people waiting to move in before anyone moves out - and thats without advertising.
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
Comment
-
Approach depends on various factors - including perhaps most obviously whether they are good tenants.
Personally I cannot envisage a scenario where I would max out the rent being charged to my tenants so that I could enjoy 'a few nice holidays'. (In case anyone was wondering why landlords tend to be so widely despised...)
Agree with the approach suggested in post #7. Discuss with the tenants, point out that they are paying below market rent and implement stepped increases. A fairy widely-accepted tenet of business is to leave something on the table.
You can of course evict using Section 21 for any reason if you wish, once they are out of fixed term.
It wasn't the original question, but FWIW consensus here always seems to be to let tenancies go periodic.There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.
- 1 like
Comment
Latest Activity
Collapse
-
by AndrewDodSimple answers in reverse order
Share of freehold does not mean you do not have a lease. You still have a lease which has a fixed term (and you are still bound by all of the obligations under that lease). All it means is that you are a joint owner of the freehold.
Plenty of...-
Channel: Residential Letting Questions
11-08-2022, 20:58 PM -
-
by landingHello!
Any disadvantages of Share of Freehold?
Also why some say 'Freehold/Share of Freehold' but also mention 100 years left on the lease?
Thanks!-
Channel: Residential Letting Questions
11-08-2022, 20:52 PM -
-
by shoobydooI used a company called Vilcol to trace someone. They gave me the new address and an updated phone number too. No solicitor needed. I did not have any previous address so had to pay a higher fee, but you already have the previous address so it will be lower. And if no trace, then no fee.
-
Channel: Residential Letting Questions
11-08-2022, 18:50 PM -
-
by ChrisallFirst post and straight in with a question! We had a CCJ against a bad tenant and can't enforce/ recover the debt because the person refuses to provide their address. The prior address was our property and the only correspondence address is her debt management company. I've looked at address tracing...
-
Channel: Residential Letting Questions
11-08-2022, 15:06 PM -
-
by artinI am a landlord. But not protecting a deposit is foolish and careless. I would go for it, I think you are entitled 1 to 3 times of the deposit so no body will go bankrupt, go for the max, can't see any excuse for not protecting a deposit. A landlord may forget to do something and a judge would be lenient...
-
Channel: Residential Letting Questions
11-08-2022, 18:10 PM -
-
by security2Hi all,
I know there's plenty of info on what to do when deposits are not protected but I wonder what your advice would be in this particular situation?
A friend of mine took on a rental in London last year and has given notice to vacate for end of this month. It's through...-
Channel: Residential Letting Questions
11-08-2022, 17:12 PM -
-
by jpkeatesI'd wait until the deposits been returned.
Unless the agent makes some unreasonable demands, in which case I'd start then.
Your friend has six years from the deadline to protect the deposit to make a claim.
Even if the agent is acting on behalf of a landlord, it's possible...-
Channel: Residential Letting Questions
11-08-2022, 18:06 PM -
-
Reply to Can I get rent paid direct to me?by NaomiBWhen you are my age, thirty one is enormously young!
-
Channel: Residential Letting Questions
11-08-2022, 17:52 PM -
-
by NaomiBMy tenant was supposed to have left yesterday but she hasn't so this morning I posted my N325-eng form with the £130 for the bailiffs.
I am expecting the court to take about three weeks to issue the warrant and four to six weeks for the bailiffs to come so about two months or so. She...-
Channel: Residential Letting Questions
11-08-2022, 12:46 PM -
-
by AndrewDodIs the agent the named landlord on the tenancy agreement. If so, go for it. If agent is agent for some other named landlord, you will be screwing someone who has already been screwed over by the agent, so would need a good (moral) reason to want to do that....
-
Channel: Residential Letting Questions
11-08-2022, 17:45 PM -
Comment