Putting up the rent

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

  • Putting up the rent

    My tenants lease comes to an end at the end of August and the Agents have sent me a letter to sign and want a reply within 7 days! They propose that the rent go up another 40 pounds a month. I know there are two but I feel putting up the rent may make them look for somewhere else! I would rather have it rented out then a void period and a slightly higher rent. I am not sure if the rent should go up every year. When I let it out myself I rarely put the rent up after just one year.

    What do people think!

  • #2
    £ 30 increase every 2 years.
    £ 30 maximum.

    You are the Landlord /Landlady, and you decide what rent you want to charge, and when to increase the rent.
    The more the rent, the more the agents get ! They get a minimum of £ 48 extra, and you get £ 432 extra.
    No need for new A.S.T.
    Just the form to increase the rent.

    If they have only been there there one year, then do not increase the rent.
    Tell tenants that the agents have suggested to raise the rent after one year, but you feel an increase is not needed yet.

    If tenants decide to leave due to a 12 month increase, it will take you 12 months to recoup the void loss.

    I have not had a rent increase ( I pay rent ) for 5 years, and none is envisaged.
    Mainly as I keep the property in good order, and as they were accidental landlords they initially managed themselves, and once suggested they were thinking of giving it over to an agent.
    I said that as they have had no trouble from me, they look at the place once a year and find it identical to when I moved in, then they should save themselves approx £ 800 per year agents fees ( twice as much as your proposed rent increase ).
    They are happy to save / make approx £ 800 per year, every year with no rent increases.

    This is only my situation, and not everyone can mange properties themselves.

    Comment


    • #3
      We do not know the rental locality, current rent nor current market rent/mo of potential Ts seeking accom.
      It isa LL business decision whether to increase/decrease rent and by how much.

      Comment


      • #4
        Depends where the property is, what the current market rent is and what local demand is like (how long did it take to let last time)? Your agent wants extra fees - and they'll charge you more if this tenant leaves. It's in an agent's interest to churn tenants and in a landlord's interest to keep them. So normally no rent increase for good tenants until it's well under market rent. However if your tax bill is going up you might tell the tenants you are regretfully looking for an increase and why and negotiate on it.

        The agent for my child's rental is being greedy so they are likely to lose tenants who have paid up promptly and caused no annoyance to other tenants. Rents are dropping slightly in London.

        Comment


        • #5
          Depends how much the current rent is.

          If it's £600 per month, then a £40 increase is a bit of a piss take.

          If it's currently £2000 per month, then it probably isn't.

          Comment


          • #6
            As some of you have said. I think I will leave a rise in rent. I would rather have the tenants stay then leave. They have been not problem at all and they are young people so probably saving up to buy somewhere themselves at some time.

            Thanks for your help everyone.

            Comment


            • #7
              Originally posted by ram View Post
              Tell tenants that the agents have suggested to raise the rent after one year, but you feel an increase is not needed yet.
              This is good advice because it puts you as someone who is on side of the tenants. It may make any rent increases you do introduce later easier for them to swallow.

              We have an agent who has continuously asked us to increase the rent and we have continuously refused. Our reasons include that get enough rent from the property as is for our purposes, we want to keep these tenants who have been there over a decade and been very good and we are not in a position right now to want to deal with the possible issues of either arrears, re-letting or sustaining a void.

              Comment


              • #8
                Depends what the market rate is.
                Charging well below that doesn't make you a good landlord, it just makes you a mug. Its a business not a charity.
                Also bear in mind if some of the loopier politicians get their way, you won't be able to evict a paying tenant and rent increases will be capped at inflation. ie about 2%
                Effectively, you could be subsidising a relative stranger thousands of pounds a year for life.

                Comment


                • #9
                  Originally posted by surreygirl View Post
                  the Agents have sent me a letter to sign and want a reply within 7 days!
                  Remember that they are your agent, i.e you are paying them to do what you want, not what they want.

                  As suggested above, agents are often out to get as much of your money as possible, so consider carefully if they suggest something that will cost you, such as a new tenancy agreement.

                  Comment

                  Latest Activity

                  Collapse

                  Working...
                  X