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

                  • Landlord (me) or agent to register deposit - pros & cons
                    123Landlord
                    Hello,

                    I'm writing my ideal specification for employing an agent - I'm a very optimistic person!

                    So this is hypothetical ... I'm trying to work out if it's better to get an agent to register a deposit or register it myself (even if I pay for a fully managed service).
                    ...
                    18-09-2017, 19:40 PM
                  • Reply to Landlord (me) or agent to register deposit - pros & cons
                    tatemono
                    okay... let me spell that out then to see if there are any gaps in my knowledge
                    1. I'd have to make sure that the AST contains a clause that allows notices/PI/etc to be served by email.
                    2. They'd pay me the deposit via bank transfer.
                    3. I'd place the deposit with DPS.
                    4. I'd send them the PI via email along
                    ...
                    20-09-2017, 09:24 AM
                  • Wording on AST Renewal
                    MYork
                    I have been in this property for 14 months now (15/7/16). In at the end of April I received a letter regarding renewal of my tenancy agreement. When reading the letter it states if I wish to renew or alternatively if I wish to vacate the property so I was under the assumption that these were the only...
                    19-09-2017, 19:37 PM
                  • Reply to Wording on AST Renewal
                    tatemono
                    It is not illegal (currently) for LA's to charge an admin fee for renewal of an AST. Nor is it illegal for a LL to insist that a tenancy does not go periodic but is renewed with a further fixed term. It may not be what you want and you may be right to think it's not fair, but it's not illegal.
                    ...
                    20-09-2017, 09:20 AM
                  • Taking on a lodger and interpreting mortgage terms
                    Eigentum
                    Hi,

                    I'm new to this forum and to the world of property investment. I've recently purchased a second property on a residential mortgage for the purposes of being closer to my workplace for most of the week and also to ease myself into understanding the world of property investment. It's...
                    19-09-2017, 22:02 PM
                  • Reply to Taking on a lodger and interpreting mortgage terms
                    jpkeates
                    For tax purposes, you will have to select which of the two properties you own is your main residence (as CGT is payable on the other one).

                    Your mortgage terms may not allow the situation anyway, as normally a residential mortgage is assumed to be on your main residence, not somewhere you...
                    20-09-2017, 09:02 AM
                  • Reply to Wording on AST Renewal
                    ilovelettingagents
                    I'm referring to Letting Agents that present your options as being "sign a new fixed term and pay the fee" or "move out". This is clearly misleading, as the third option of a statutory periodic tenancy is not put forward. The tenant is in no position to negotiate anything - you either...
                    20-09-2017, 09:01 AM
                  • How early do you start advertising?
                    PollyW
                    I manage my own properties and have always waited until I have a vacant flat which is ready for letting before I start advertising.

                    I have a tenant due to leave in one month and I am concerned that the later I leave the advertising, the harder it will be to fill the flat, given the time...
                    19-09-2017, 08:19 AM
                  • Reply to How early do you start advertising?
                    boletus
                    One month before, usually have a waiting list by the time it is empty....
                    20-09-2017, 08:54 AM
                  • Reply to Wording on AST Renewal
                    security2
                    Yeah, it's shocking isn't it. You sign a legal contract, under UK law, and the least you'd expect is to be able to walk away from it and for any of the terms that you agreed to and signed up for to be just ridden roughshod over...

                    Some people need to take responsibility for their own actions!...
                    20-09-2017, 08:18 AM
                  Working...
                  X