How much should I increase rent to cover new tenant?

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

  • How much should I increase rent to cover new tenant?

    I have a three bed house let to a Philippino family and their friend. They are a married couple with a young son and their female friend who said at the time she signed the contract that she was hoping to be joined by her husband and her young son. Their visa applications were successful and they are currently staying in the house.

    They are all good tenants and I'm keen to keep our relationship on good terms. They are all are happy with the living arrangements and would like to make this a permanent arrangement (at least until the remainder of this contract - about six months), so I have explained that we must follow the same procedure for the new tenant, filling in an application form and guarantor application (Landlordzone documents, of course) plus the normal Rentwise credit check (not sure how relevant this is to somebody who's just arrived in the country).

    I'm aware that this should be run as a HMO, but conversations with my local council have confirmed that this isn't something they insist on in these circumstances, so I may or may not go down that route. I accept that it may be a legal requirement nonetheless.

    I have explained that adding another tenant will mean an increase in the rent and they accept this, but given our good relationship I don't want to take advantage. However, my costs will increase even if I don't make it an HMO (which could involve significant expenditure) because of the increased wear-and-tear etc.

    This must be a very common situation and I was wondering if there is some kind of formula that I can use to help determine a fair and reasonable figure to use for the increase? If not any help and guidance with this matter would be most welcome.

  • #2
    How did you determine what rent to charge initially, and why can't you use the same process this time?

    Peter

    Comment


    • #3
      I'm really not clear why you think it's necessary or appropriate to increase the rent in these circumstances.

      When I advertise a house to let, I state the monthly rental, full stop - I don't have a variable tarriff depending on whether a single person, or a couple, or a couple with a child comes to view it.

      If it was an HMO where it was clear from the outset that you would be letting out on a per-room basis, that would be a different story.

      Comment


      • #4
        I agree with the above comment. Unless I am being very naive, it has never crossed my mind to charge different amounts for different numbers of tenants in the same property.

        The only extra costs I can think of is damage or unfair wear and tear, but couldn't this be covered by just increasing the deposit?

        Comment


        • #5
          I'm suprised that your council is so easy going about your house not needing HMO status given that there are in fact two housholds and more than two tenants at the moment - unless the female friend is regarded as a guest or is actually a relative. More tenants, if they have their own agreement, will only make the situation worse.

          Our council stick very closely to the rules and wouldn't let us have 3 tenants in a 2 bed house without an HMO certificate, mainly on safety grounds. Be very sure that you are on firm legal ground here, as if anything went wrong ie a fire in the property, I think you'd be liable and I doubt very much that the tenants or the council would back you up.

          Comment


          • #6
            I'll leave the rent as it is then.

            The HMO issue has been discussed extensively in a thread I started last year.

            Thanks.

            Comment


            • #7
              Does anyone know what the rules are regarding HMO if two tenants have a baby? (I have two tenants in a 2-bed house.)

              Serious question! Probably dumb

              Comment


              • #8
                Originally posted by pete's properties View Post
                Does anyone know what the rules are regarding HMO if two tenants have a baby? (I have two tenants in a 2-bed house.)
                Erm...I think the baby might be classed as part of the same household as the parents?

                Serious question! Probably dumb
                Yep, definitely!

                Peter

                Comment

                Latest Activity

                Collapse

                • What brand/price point for washer/dryer would you recommend?
                  clairol
                  As a landlord what approach do you take to replacing white goods in your rental properties?
                  Do you buy cheapest brands and then dispose of them when they go wrong as it is pricey to repair?
                  Or do you go for a better brand and hope for longevity?
                  My repair man recommends buying the...
                  22-07-2017, 08:48 AM
                • Reply to What brand/price point for washer/dryer would you recommend?
                  jpkeates
                  Horses for courses.

                  I've never been able to get a fridge repaired, they only have one working system and when it breaks it's time for a new fridge, so I buy the cheapest one that fits with a name I've heard of.

                  Washing machines can be repaired, so I pay more for one that has...
                  22-07-2017, 10:27 AM
                • Claiming for protected deposit
                  mandm
                  This is an interesting one, got me into a spin.
                  Tenants signed AST but decided to leave after 6 months and 3 days (problem with moving) using the break clause in the AST. I protected the deposit using DPS (Insured) and returned the deposit minus deductions when the moved out.
                  I served the...
                  21-07-2017, 08:00 AM
                • Reply to Claiming for protected deposit
                  jpkeates
                  That would be pointless.

                  The tenant would have to sue to get their own money back.
                  Apart from the waste of the court and tenant's time, there would be little or no compensation because the tenant would suffer no loss to compensate them for (loss of interest?).
                  The only people...
                  22-07-2017, 10:23 AM
                • Deposit at the end of AST. Also, quiet enjoyment.
                  scooter08
                  Q1 – Where is the rented property located (England / Wales / Scotland / N Ireland)?
                  England

                  Q2 – What type of Tenancy Agreement (TA) is this e.g. sole tenant / multiple tenant / room only?
                  AST

                  Q3 – What date did current TA start dd/mm/yy?
                  12/04/2015
                  ...
                  21-07-2017, 15:06 PM
                • Reply to Deposit at the end of AST. Also, quiet enjoyment.
                  Wright76
                  Your right that the penalty claim is the law and it's your right to claim it.

                  Unfortunately however you won't receive much sympathy on here,as most of us recognise that most of the breaches have been made by inexperienced landlords and not through any intention to rip you off.
                  ...
                  22-07-2017, 10:18 AM
                • Reply to Claiming for protected deposit
                  jpkeates
                  The legislation has been in place for a decade and has been revisited at least twice (and tweaked each time).
                  The deposit schemes have fairly clear guides about what needs to be done and how and when to do it.

                  Given the tenant(s) the Prescribed Information is part of the process of...
                  22-07-2017, 10:17 AM
                • Reply to Claiming for protected deposit
                  JK0
                  It discourages landlords from taking a deposit at all, and instead making it up with higher rent. This discriminates against tenants staying for a long time.

                  I think that is what is happening to o/p.



                  It's all a lot of nonsense. Tenant could always sue if landlord...
                  22-07-2017, 10:12 AM
                • Reply to What brand/price point for washer/dryer would you recommend?
                  Dinkum
                  I buy the cheapest machine I can source. It is usually a Hotpoint or Indesit. And they all come out of the same factory. Some of them last for years. I've just replaced a Hotpoint WD after 11 years with a new Indesit one. I try and avoid the ones with the digital display and too many fancy options as...
                  22-07-2017, 10:09 AM
                • Reply to Claiming for protected deposit
                  mandm
                  What’s evident from responses in this thread that equal emphasis was given to deposit protected within time frame and T were informed in a prescribed manner, some going as far as getting the T to sign the acknowledgement!
                  I am really flabbergasted to read some of these emphasis, surely the point...
                  22-07-2017, 10:07 AM
                Working...
                X