Rent increase dilemma

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    Rent increase dilemma

    Hi have a tenant in a property in Hackney who is paying a rent of £930 pcm for a 1 bed basement garden flat. I last reviewed the rent 2 years ago and had increased it from £866. The flat above is let at £996,does not have a garden and is a somewhat smaller. Both are 1 bed. I have a single woman living in the basement flat who if often away from work and pays the rent on time etc. Looking at Rightmove I would guess the market rent at about 1150-1200 pcm as rents is this part of town have increased a lot in the last few years.
    The lady has been there 5 years now and I'm not greedy however this is a business after all. What would you do ?

    #2
    I'd put the rent up by just a smallish amount but keep it below the market rent. She sounds like a good T to me and I'd not want to swap her, but if you don't put the rent up the difference between what you charge her and the market rent will only increase and your decision will become more difficult in the future.

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      #3
      If your tenant moves due to a rent increase you be replacing a reliable tenant with an un-known quantity, you will incur tenant-fnd fees and almost certainly lose rend during the void. After 5 years, you will also need a not insignificant spend on redecoration / replacement.

      Your rent may be cheap, but for her £930 your tenant is living in a flat that is getting a bit jaded after 5 years. Those currently advertised at £1150 will be fresh. Therefore, you are not comparing like with like.

      I am sure that an increase is in order but I think you should keep it as a 3 figure rent - even if that is £999.

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