How quickly can I put up rent?

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    How quickly can I put up rent?

    I am thinking of renting out a house on an six month AST.Unfortunately the prospective tenant wants to pay a rent which is short of the amount I want.Is it a good idea to let out the property and put the rent up in six months or maybe twelve months?

    #2
    Originally posted by Wickerman
    <snip>
    3. Take them on, increase the rent after 12 months (or try to) and possibly face losing the tenant.
    Not sure that I understand the reasoning behind this suggestion. If the original fixed term of the AST is six months then at the end of the fixed term the landlord could negotiate and issue a new AST for an increased rent. Alternatively the landlord may agree (in writing) a revised rent with the tenant for the tenancy to continuing as a statutory periodic tenancy or a periodic tenancy both with rent review provisions.

    If the landlord is asking the market rent and the tenant is satisfied with the property then the tenant should have no reason to move as the result of an adjustment of the rent to match market conditions.

    Situation depends on whether the tenant prefers longer security of tenancy than offered by a statutory periodic one. If the tenant desires the offer of a longer term tenancy is a negotiating point in the landlord's favour.
    Vic - wicked landlord
    Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
    Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

    Comment


      #3
      Thanks chaps.There are pros and cons with my prospective tenant.She wants to live close to her sister who owns the house two doors down but she is not willing to pay the market rent.She is at least twenty-five pounds a month short of a reasonable market rent.If I take her on I know that she will struggle to find anything similar locally within about fifty pounds a month of what she is offering.I would be satisfied with another fiver a week.It's not a commercial necessity for me but I don't like the idea of being taken advantage of.I know legally that I can offer her six month AST and then renegotiate at the end of the period.I like to offer my tenants a good deal by charging slightly less but I think I'll need to be hard-headed this time.

      Comment


        #4
        Have you done the full TenantVERIFY or similar checks on the proposed tenant. Can she afford the market rent you are asking?

        You should not be charging less than the £50 market value unless properties are sticking in the area. You would be giving away £300 on a six month AST!

        The tenant has found a property meeting her objectives of being near her sister - what are the chances of her finding something else at less than the market rent.

        You are still receiving enquiries concerning your property and are confident that you will be able to find a tenant to pay the market rent. If the current proposed tenant signs the agreement promptly, places the deposit and first month's rent you will as a goodwill gesture be willing to reduce the rent to £10 per month below the market value. (Don't forget every week of indecision is lost rental income!)
        Vic - wicked landlord
        Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
        Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

        Comment


          #5
          Originally posted by Andy Parker
          I know legally that I can offer her six month AST and then renegotiate at the end of the period.
          Yes but is that wise. Asking for a rent increase so soon isn't going to go down well so if the tenant is unable or unwilling to pay a level of rent you are happy with then it sounds like they are not the right tenant. It will be early December in six months time, not the best time of year to get a new tenant. If the property really is worth more then why not hold out for a tenant willing to pay more now?
          ~~~~~

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            #6
            If the tenant can't afford the rent at the price you want now there's little chance they will be able to afford it in 6 months so save yourself the worry and them the hassle.

            If you take them on now at a lower rate and then increase it they will either have to move costing them money and hassle, costing you maybe a month or two of void. Or they will simply fall into arrears forcing you to take them to court and costing more money again.

            Be fair with the people and explain you are not prepared to accept such a low rent.

            Comment


              #7
              Originally posted by Ruth Less
              Yes but is that wise. Asking for a rent increase so soon isn't going to go down well so if the tenant is unable or unwilling to pay a level of rent you are happy with then it sounds like they are not the right tenant. It will be early December in six months time, not the best time of year to get a new tenant. If the property really is worth more then why not hold out for a tenant willing to pay more now?
              On the plus side the property is likely to be well looked after and the tenant knows that she will still be getting a very good deal.Would you leave over a fiver a week if you know you're paying less than others renting in the area?I can't believe she's so hard up that it will be crucial to her.It's a packet of cigarettes a week (and she does smoke).

              Comment


                #8
                As a tenant I'd prefer to know what the rent is likely to be for a fairly long time - I wouldn't want to move in somewhere and then find in 6 or 12 months time the rent goes up.

                Why not sound her out at the extra fiver a week and see where it goes from there? lets face it - when we put in an offer to buy a car for less than the marked price, we don't expect it to be accepted do we? we expect the seller to come back at somewhere in between our offer and the asking price ... same difference here !!!

                Originally posted by Andy Parker
                On the plus side the property is likely to be well looked after and the tenant knows that she will still be getting a very good deal.Would you leave over a fiver a week if you know you're paying less than others renting in the area?I can't believe she's so hard up that it will be crucial to her.It's a packet of cigarettes a week (and she does smoke).
                Any information or opinion given in this post is based only on my personal experience, what I have learned from this, other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person. E&OE

                Comment


                  #9
                  Originally posted by Andy Parker
                  On the plus side the property is likely to be well looked after and the tenant knows that she will still be getting a very good deal.Would you leave over a fiver a week if you know you're paying less than others renting in the area?I can't believe she's so hard up that it will be crucial to her.It's a packet of cigarettes a week (and she does smoke).
                  What if she reacts badly to the rent increase as she objects to your raising the rent after just six months. Would you risk losing or having to evict an otherwise good tenant over a fiver a week? If you are willing to take action over a fiver a week they why assume she won't. We all have our line in the sand. As for what I would do, I'd be mad as hell if the rent were increased after only six months. As it will be early December by then I'd call your bluff over the chance of your getting a void over Christmas and the New year.

                  I think Jennifer_M and pippay in the above few posts have nailed it. Why cause the hassle? Why not agree a rent you are both happy with or let her go. After all if the property's a good one and in demand you don't need this tenant anyway.
                  Last edited by Ruth Less; 05-06-2006, 21:55 PM. Reason: Correct mistake.
                  ~~~~~

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