A question to LL

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    A question to LL

    Hello

    We are 9 months into a 1 year AST. We have paid on time every month, and made improvements to the property (with the LL permission).

    I have been looking on-line at other rental properties in the area, we rent a very very small one bedroomed bungalow, and there are numerous one bedroomed flats (some ground floor with a garden) and one bedroom houses that are being advertised for £125 less a month than we are paying.

    I have printed out all of these properties and plan on showing them to our LL to see if they would agree to a rent reduction when are contract is due in July. If the LL agreed to reduce the rent we would be happy to sign for another 12 months. If they do not agree we go onto a periodical contract so that we can view properties and not tie ourselves in for another year.

    My Question is:

    If you had a tennant that could prove the rent they are paying is over market value and they paid the rent on time and looked after the property to a high standard would you risk losing them? Or would you lower the rent?

    I just wanted to see what the "average " LL would do, I of course understand that is does depend somewhat on the costs that our LL has to cover.

    Would you drop the rent to keep a good tennant even if it meant you would have to top up the payments?

    As always thanks for reading, and I look foward to any responses

    #2
    I would consider reducing the rent to a good tenant that pays on time everytime.

    If I knew that I could get the rent I wanted to charge quite easily, I would say goodbye to the good tenant though.

    In your position, I would split the difference and see what the landlord says.
    You may decide to leave, and get stuck with a landlord from hell.

    I'm not sure why a landlord would need to "top up" the payments?
    Allow tenants to protect their own deposits. I want free money when they do it wrong

    Comment


      #3
      Thank you very much for your response

      The comment about "topping up" :

      For example if the LL's mortgage payments are £675.00 per month and we asked for a reduction to £650 per month then the LL would have to pay the £25.00 towards the mortgage.

      And I take your point about having a LL from hell! We are on our 3rd LL so far, and all 3 have been pretty good, so I suppose I must be due for a "bad" one soon!!!!
      Last edited by moto; 28-04-2010, 15:40 PM. Reason: added last comment

      Comment


        #4
        Originally posted by moto View Post
        If they do not agree we go onto a periodical contract so that we can view properties and not tie ourselves in for another year.
        In general, a situation like this is best resolved by negotiation and compromise on both sides. I charge my tenants over market rent, but they get a service from me that is worth every penny.

        With regard to the quote above - bear in mind that this isn't the only option - you may not be tied in for another year, but neither is the landlord - you could be evicted under section 21 and have to find somewhere in a hurry - and we frequently hear on here about properties hat have been rented in haste where the tenant has regretted the decision for every day of the next 12 months.

        Comment


          #5
          My personal answer would be maybe. How I would handle it when presented with the paperwork would be to say "Thank you, I'll get back to you". I would then do my own research which would include looking through papers and the internet and talking to agents.

          I would then have a good think and take a view on:

          If i refuse will the tenant actually move out?
          How long a void would I be likely to have if they did?
          Would I be able to get the higher rent when I did rent out?
          Is the rent really unrepresentative?

          How much my costs are would not be a factor as I will be looking to get the best return with reliable tenants regardless of my costs.

          The converstation might then end up anywhere depending on the answer to the above. e.g. "you can have 75 pounds a month off if you sign up for 2 years"

          Comment


            #6
            Thank you very much for your feedback Snorkerz and Fletchj

            It is very appreciated!

            Comment


              #7
              I think most landlords would consider it if you generally had a good working relationship and if the reduced rent really did represent current market values.

              Comment


                #8
                Originally posted by moto View Post
                My Question is:

                If you had a tennant that could prove the rent they are paying is over market value and they paid the rent on time and looked after the property to a high standard would you risk losing them? Or would you lower the rent?

                I just wanted to see what the "average " LL would do, I of course understand that is does depend somewhat on the costs that our LL has to cover.

                Would you drop the rent to keep a good tennant even if it meant you would have to top up the payments?
                It totally depends.

                I have just accepted £10 per week less than current tenant is paying from a new tenant. But because he wants to move in immediately after the current tenant leaves this works out as a really good deal for me compared to a month's void (which is what I have on average between Ts).

                In the situation you describe, I would accept a rent reduction in exchange for a long-term commitment (assuming I was confident the T could afford to commit).

                I would consider myself an 'average' landlord in terms of just wanting to make money, have reliable tenants, minimal hassle, etc.

                Comment


                  #9
                  Thank you Jaybee and Westminster for your coments.

                  I will update you how it goes, when I have spoken to my LL!

                  Comment


                    #10
                    Originally posted by Snorkerz View Post
                    I charge my tenants over market rent, but they get a service from me that is worth every penny.
                    That sounds like you charge a premium for doing the job properly.

                    Comment


                      #11
                      [QUOTE=Snorkerz;208640] In general, a situation like this is best resolved by negotiation and compromise on both sides. I charge my tenants over market rent, but they get a service from me that is worth every penny.

                      QUOTE]

                      Not sure how that works, you can only charge the "market rate" for new tenants, perhaps you are refering to rent increases on contract renewal.

                      Also until you have had a really bad L (and I have been there) most tenants view most average to good L's as much of a muchness. It is like trying to distiguish between mortgage providers once you are living in your property. All T wants from L is to be left alone and repairs made on the rare (we hope) occation they happen. Not sure you can charge a premium for that...

                      For those that ever watch the Apprentice, it reminds me of Alan Sugars reaction to having to 24 hours hotline premier service on his Y fronts i.e. not required, just do job.

                      Comment


                        #12
                        Originally posted by Lawcruncher View Post
                        That sounds like you charge a premium for doing the job properly.
                        It does, doesn't it

                        The rent was set at that level because the tenants renting history was unprovable and (amongst other things) their guarantors were - shall we say - less than ideal. There is an element of commercial risk involved, which I have to factor in.

                        My point is that my 'commercial risk' is not going to make Ts feel better about their rent level, so I do whatever I can to be as helpful/obliging as possible without compromising my own situation.

                        Comment


                          #13
                          Originally posted by moto View Post
                          Hello

                          We are 9 months into a 1 year AST. We have paid on time every month, and made improvements to the property (with the LL permission).

                          I have been looking on-line at other rental properties in the area, we rent a very very small one bedroomed bungalow, and there are numerous one bedroomed flats (some ground floor with a garden) and one bedroom houses that are being advertised for £125 less a month than we are paying.

                          I have printed out all of these properties and plan on showing them to our LL to see if they would agree to a rent reduction when are contract is due in July. If the LL agreed to reduce the rent we would be happy to sign for another 12 months. If they do not agree we go onto a periodical contract so that we can view properties and not tie ourselves in for another year.

                          My Question is:

                          If you had a tennant that could prove the rent they are paying is over market value and they paid the rent on time and looked after the property to a high standard would you risk losing them? Or would you lower the rent?

                          I just wanted to see what the "average " LL would do, I of course understand that is does depend somewhat on the costs that our LL has to cover.

                          Would you drop the rent to keep a good tennant even if it meant you would have to top up the payments?

                          As always thanks for reading, and I look foward to any responses

                          I dont know what rent you are paying at present but asking for a reduction of £125 per month sounds a lot. Are you sure you are comparing like for like with properties? Has the average rent dropped by that much in 9 months (unlikely I would have thought)? Didnt you look around at other properties 9 months ago? Was the property you chose the most expensive?

                          I think it will depend, as others have said, whether the LL thinks he can get another T in at the rent you are currently paying. But £125 still seems a lot!

                          Comment


                            #14
                            Rental values have gone up 250 pounds in my area in the last 1 year ...

                            Comment


                              #15
                              Originally posted by p_cas View Post
                              I dont know what rent you are paying at present but asking for a reduction of £125 per month sounds a lot. Are you sure you are comparing like for like with properties? Has the average rent dropped by that much in 9 months (unlikely I would have thought)? Didnt you look around at other properties 9 months ago? Was the property you chose the most expensive?

                              I think it will depend, as others have said, whether the LL thinks he can get another T in at the rent you are currently paying. But £125 still seems a lot!

                              I wasn't looking for a reduction of £125.00 more likely £50.00 - £75.00. I don't think the rent has dropped by this much in just 9 months, but I think the property was overpriced when we took it 9 months ago. We did agree to the rent (even though we thought it was overpriced) as we really like the property, but we thought that as we have "proved" that we are excellent tennants that the LL may condsider dropping the rent to keep hold of us.

                              We will never be in the position to buy (due to ages, and the prices where we live) and we are really looking for a very long term let, but if we start off as overpriced and then the LL does a yearly increase it would be hard for us to stay, when we can move to another property that is over £100 cheaper per month. (We have moved 4 times in the last 4 years and I HATE moving!!!) I would really love to stay where we are, but just pay a bit less money!!!

                              Comment

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