Intention to increase rent - Advice please.

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    Intention to increase rent - Advice please.

    Hello

    I have a house let with current rent at £525 pcm. Similar houses in the area are now at £600+. I've kept the current rent level for the last 4.5 years with the current tenants at 3 years.

    One of the main reasons I've not increased the rent is because of the economic climate, but the house now is at least 13% undervalued. I thought the current tenants would have moved on by now (from experience knowing their circumstances) but they seem to be settled. Usually I try to do rent increases on change of tenancy where possible. I understand the value of a long term tenancy without breaks but don't want the rent to slip too far behind market value. Neither do I want to be taken for a mug!

    I don't want to "trigger" a move, so what's the best thing to do?

    1) Arrange a "formal" review (meeting with tenants) and give notice of increase along with evidence of similar homes in the area. I've been in recent regaular contact with them due to repairs etc. Increase to say £550pcm

    2) Simply post the intention with a formal letter and await a phone call. Increase to say £550pcm

    3) Leave it until the spring when prices are buoyant, hit them with the biggest increase I can get away with and serve section 21 if there is disagreement?

    Thanks

    John

    #2
    Originally posted by John Duff View Post

    I don't want to "trigger" a move, so what's the best thing to do?

    None of us know your tenants.
    Allow tenants to protect their own deposits. I want free money when they do it wrong

    Comment


      #3
      You are suggesting rocking the tenants boat for a less than 5% increase. Your income of £6,300 per annum would rise by £300 per annum.

      I would look at it from the view that if they leave that would mean getting new T in. Will you have a period where the property is empty, for cleaning, inventory checking, and losing £525 for that month at current rent? Plus agents, and any other, fees if applicable?

      If you are in regular contact with them you could mention that similar properties are curently returning £600 pcm and invite them to consider and make an offer as to what they feel would be an appropriate increase? If it comes from them it will seem more palatable to them and less likely to trigger a move. You may even get more than a £25 pcm increase?

      I offered a good T a reduction recently despite the fact I could have maybe got a bit more if I had advertised again.

      pm
      Before acting on forum advice, you may wish to consult an expert, someone who has all the relevant facts, and who accepts liability for their advice.

      Comment

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