How much notice should we give tenants that a large rent increase is coming?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    How much notice should we give tenants that a large rent increase is coming?

    We are renting our property through an EA under a 1 year contract that expires in 4 months. Usually, if we have good tenants, we won't increase rent by too much (if at all), we only increase rent when the property goes back on the market between tenants. We have now been charging well below market value for several years.

    This past year however, there were a number of call outs made and issues raised, and we have realised that prices of contractors in the area has increased to ridiculous levels. We are now standing at a potential loss this year, and may need to increase rent by about 25-30% next year to prevent this from happening again if further issues are raised. This price will align the property with other similar sized properties in the area, and bring the rent back up to market value. We know that due to inflation, many tenants will be expecting large rent rises this year, but we also understand this may be more than expected and our tenants may wish to downsize, so we would like to give them enough time to plan ahead.

    We raised the question with our EA and they told us that we will have no problems getting new tenants within 1-2 weeks if we need to put the property back on the market at that price, so it is up to us how much advanced notice we want to give.

    What would be a fair notice in this situation?

    #2
    I'd perhaps say 2 months from the next rent date. So a letter served today for a rent due on the 1st wouldn't come into force until 1st April which gives them at least 2 months to be angry and then either to decide to move or to budget accordingly.

    Comment


      #3
      The quick answer ..... as much time as you can, especially as it has been YOUR decision not to increase the rent for 7 years, they are going from zero increases to a possible £200 or more a month increase...... that is a lot, even if it brings it in line with the market rate. So as much notice as possible is where i would go.

      Comment


        #4
        I'd always try for as long as you can... Gives them breathing space to make next move. They may have to make some personal changes (e.g work more hours) to stay which could take time. Or need to leave and find something more suitable. Either way they'll appreciate the time which leads to your property being left in better state

        Comment


          #5
          I too think you should give them as long as possible. Given the size of the increase they'll probably move so the longer they have the better. If I was the T I'd consider 25% unreasonable.

          Comment


            #6
            My vote also goes to 'as much as possible'.

            The only reason I can really think of that you might want to give them anything less than that is if you thought the prospect of a rent increase might prompt them to move out. But you seem relaxed with that outcome anyway.

            Originally posted by royw View Post
            Given the size of the increase they'll probably move so the longer they have the better. If I was the T I'd consider 25% unreasonable.
            If OP is correct in saying that the increase will take it back to market value then tenants seem unlikely to benefit financially by moving.
            There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

            Comment


              #7
              I give notice of a rent increase as soon as the rent is paid 2 months before the proposed increase - so Jan for a March rise. I also raise my rents every year to avoid this situation. If your tenant is used to £25 rent rises every year it doesn't come as a shock whereas £100 once in 4 years seems much worse.

              Rent rises this year may hit tenants particularly hard with all the other inflationary pressures around, so a large rent rise that they are not expecting may be very unpopular. By putting up rents each year you can avoid sudden big leaps and I think this is a more palatable way for tenants receive increase.

              Comment


                #8
                Originally posted by Nanny

                take the property off the market for a month, and fix up all potential issues in person, as it seems the main expense is the cost of calling out multiple contractors to the property,
                Always worth making sure the property is up to standard between tenants as it is much easier to do work done in an empty house.

                I have given up trying to understand how tenants minds work - they don't work like mine! I don't think you get any quid pro qui for lower rent so I always treat tenants as customers & my houses as a business - that seems to work for me!

                Comment

                Latest Activity

                Collapse

                Working...
                X