SW London- let property- by how much can rent rise?

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    SW London- let property- by how much can rent rise?

    Hi - my tenants are coming to the end of a year-long AST and they have (touch wood so far) been brilliant. They've also said they want to stay on for another year, which is great.

    It's a two-bed garden flat in good condition in south-west London rented for £325 per week. I've researched most of the local agents and this appears to be a competitive price.

    I want to put the rent up but am aware of alienating such good tenants in doing so. Any advice on by how much to increase the rent? And how to break the potentially bad news to them in a good way?

    #2
    3% increase would be easy to justify as being in-line with inflation ( and rise in service charge etc). If you ask for more and the tenant chooses to leave, then you may be faced with a one month + vacant period which would cost you 8% or more as well as paying an agent to find a new tenant.

    What is the average waiting time for finding a tenant in your area ?

    Comment


      #3
      Originally posted by piperdownunder View Post
      Hi - my tenants are coming to the end of a year-long AST and they have (touch wood so far) been brilliant. They've also said they want to stay on for another year, which is great.

      It's a two-bed garden flat in good condition in south-west London rented for £325 per week. I've researched most of the local agents and this appears to be a competitive price.

      I want to put the rent up but am aware of alienating such good tenants in doing so. Any advice on by how much to increase the rent? And how to break the potentially bad news to them in a good way?
      1. I assume that there is no rent increase mechanism in the existing AST.
      2. Better to speak to them informally about the rent, first, rather than just writing.
      3. You can either:
      a. grant new AST (renewal) for another year (or whatever) at the increased rent; or
      b. allow old AST to run on. It becomes a periodic tenancy, monthly if the rent was payable monthly during the year's fixed term. The rent increase would be implemented by a Notice which you serve under s.13 of Housing Act 1988.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

      Comment


        #4
        Thanks both, appreciate your thoughts. Will talk to them informally and go from there. Re waiting times for tenants, I'm not sure, as we stumbled across these tenants (our first).

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          #5
          Anyone know where I can get a (preferably free) section 13 notice to download? Have searched this site to no avail.

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            #6
            I looked at Kingston, Surrey market recently as I had to renew my tenants contract & I hadn´t increased it the year before. Both rents & purchase prices have increased & I found out I was charging a bit below the market, q happy as I am not greedy & a pound in your pocket is worth 2 of an agents promise.

            Anyway, I put the rent up by RPI, c 3% I seem to remember & got the water cost transferred so was more than happy.

            Going rent now for a good modern 2 bedder in central Kingston is 1100 GBP pcm, to buy 265 k so a 5% gross yield.

            I reckon the rent increases were absorbed as it´s a strong market (uni, London jobs access etc) & so landlords increased finance costs could be passed on.

            BTW I was expecting a counter offer from T but he just paid up without comment, never hear a peep out of him so well pleased. Also, he never hears anything from me so he must be happy too.

            Comment


              #7
              Originally posted by caroline7758 View Post
              Anyone know where I can get a (preferably free) section 13 notice to download? Have searched this site to no avail.
              1. Go to top of screen.
              2. Click on AGREEMENTS.
              3. Click on NOTICES.
              4. Click on RENT INCREASE NOTICE.
              5. Er, that's it.
              ...but it costs £30. Cheaper to buy from Law Stationers at about 50p-£1. Try scanning web for Oyez (Solicitors Law Stationers).
              JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
              1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
              2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
              3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
              4. *- Contact info: click on my name (blue-highlight link).

              Comment


                #8
                Originally posted by Poolboy View Post
                never hear a peep out of him so well pleased
                It could be a suspicious silence like when a child is playing and it suddenly goes quiet, and you find they've set fire to the priceless antique coffee table or something.

                Peter

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                  #9
                  Thanks, Jeffrey- I think I had found that but the price must have made it go straight out of my head!!

                  Comment


                    #10
                    325 is already sky high. You can get a decent 4 bed house in North London for that and much better neigbourhood...

                    Comment


                      #11
                      Originally posted by margaret View Post
                      325 is already sky high. You can get a decent 4 bed house in North London for that and much better neigbourhood...
                      North London is not Southwest London!

                      Peter

                      Comment


                        #12
                        we had good tenants in a flat I managed for my sister. Tolerant people, easy to deal with and honest. They have been in the flat now for 8 years and we only increase rent by inflation. Might increase a little more this year as have done fairly extensive work to the flat - new bathroom, repainted, etc etc, but my feeling remains that if they are good and you get on with them........keep them. The long term benefit in our case has far outweighed the nominal increase in rent we may have got, had we been able to rent quickly and found amenable people. In my other flat I've had huge problems with tenants and I would prefer less rent and good people any day.

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