An increase in rent - please help me understand why

Chef1980uk

I write to advise you that I have discussed with our Landlord client the matter of a review in rental level for the property.

It is proposed that the rent will be increased from the current level £400 to a new figure of £425pm

Thats what is in the letter and so i would just like to hear from other landlords and tenants their thoughts on why an increase is felt necessary. Here are some facts.

We've lived in the property since April 2001.
The rent has increased 7 times.
It's on a busy A road (60mph).
There is no fencing on the border of the garden, just two bits of wire, beyond that is some land, a field and more land that leads down a steep hill for 1km. *
Never missed a payment.
The property does not have a mortgage attached to it.
We have to use electric heaters as the storage heaters arn't strong enough. If we have been out and come back, it can be as cold as 15c and thats with every storage heater on full settings.

* = because we have a 1 year old and twins on the way, the landlord has decided to put up some "chicken wire" up as a fence to stop our child going on to the other bit of land. They are doing nothing to block the openess of the garden that could stop our son running out on to the A road though such as a gate. And what about stopping people getting in to our garden that could potentially take our son away. Chicken wire is hardly adequate, or is it landlords? Would you do the same?

So can anyone help me understand why the increase. If you think its for the chicken wire i wouldn't of thought so as they live in the farm across the road, its not like they will have to outsource it.

MX5huggy

Because a 6% rise is resonable in line with inflation.

If the property is unsuitable then move. How much are other houses to rent in the area. Rent somewhere more suitable with low rent if you can.

silvercar

Your fencing is a problem for you not for your landlord. It hasn't changed from when you first inspected the property and decided to rent it, so there is no obligation on the landlord to change it.

It is your responsibility to look after your children. If you consider the garden unsafe then you need to do something about it or to only allow the children to be in the garden when personally supervised.

Why the increase? Because he can. TBH a £25 increase since 2001 is small.

Geenie

If I understand correctly, the LL has increased the rent 7 times since 2001, so every year near enough. The OP hasn't said what size property it is, though the central heating doesn't sound great. I would not have increased at this rate.

As a LL, I do not think it is my responsibility to make a property safe for children or pets in terms of fencing. I let a property as seen. If the tenant is happy with what they get and agree on first letting, it is then up to the tenant to make safe enough for their requirements if circumstances change, as any householder would have to do.

When you have children, you have to take extra precautions around the home. This is not the LL's responsibility but yours in my opinion.

But I would press for better central heating OP.

Gorgeous_George

As a LL, I consider it my responsibility to provide a safe home for my tenants, their children and any visitors. I also take responsibility for the heating system and home insulation.

A rise every year is perfectly normal. You are free to negotiate but be prepared to move if necessary.

GG

Chef1980uk

Thanks Greenie, fair enough on the fence. Yep 7 times since 2001, it was originally £275 which is why we went for it back then. Also back then we didn't think about choosing where to live on the basis that we were going to have kids 5 years later so the problem of no fence wasn't an issue and still wasn't until our first was born in 2007. Just didn't know where as a tenant we stood on who's obligation it was to provide the fence.

Will ask about the heating though. Thanks

oldone_2

Hold on a moment. The business model for renting out a property usually includes a fixed percentage of the property value as an annual rent. For example 8% return on a £100,000 property equates to an annual rent of £8,000.

Now property prices are in freefall, and if that £100,000 house is now worth £75,000, annual rent should actually drop to £6,000. Of course it never will, but at the same time they can be no real justification in raising the rent other than to increase your percentage return on the capital investment, which in credit crunch times is unusual.

MaximumImpact

We are in the same situation and have taken our rent rise on the chin!!! We were paying £500 and have just taken a £200 rise but I think that we still have a cracking bargain....

We have a 3 bed semi cottage in the heart of the countryside with half an acre of land. Our landlord lets us decorate and do whatever alterations to the property we wish, we just advise him first...we have numerous animals that now constitute a small holding and he is happy with this. The value of the property currently stands at £375,00....

We had no gates or fencing and simply did it ourselves....with regards to the heating, we spoke to him about the old windows and he arranged Double glazing to be fitted last year...He is a bit slow to make repairs or deal with problems (not maliciously, just a bit vague sometimes and it can be quite funny) but all in all, I think we have the best landlord in the county!!!

:T

CLAPTON

oldone wrote: »

Hold on a moment. The business model for renting out a property usually includes a fixed percentage of the property value as an annual rent. For example 8% return on a £100,000 property equates to an annual rent of £8,000.

Now property prices are in freefall, and if that £100,000 house is now worth £75,000, annual rent should actually drop to £6,000. Of course it never will, but at the same time they can be no real justification in raising the rent other than to increase your percentage return on the capital investment, which in credit crunch times is unusual.

The business model for renting a property is supply and demand..
Charges are whatever the the landlord and tenant agree.
It depends upon what other properties are in the OP's area and at what price.
With the info available there's no way of knowing whether he has a bargain or being over charged.... I would however, have thought that rents should be stable or falling at the moment.

wriggly

oldone wrote: »

The business model for renting out a property usually includes a fixed percentage of the property value as an annual rent.

The rental price of a property is ultimately determined by supply and demand.

The yield (the rental return from your purchase price) is not used to calculate the rent, just to determine whether, with the expected rental income, the purchase is a good idea.

maninthestreet

MX5huggy wrote: »

Because a 6% rise is resonable in line with inflation.

If the property is unsuitable then move. How much are other houses to rent in the area. Rent somewhere more suitable with low rent if you can.

So inflation is currently at 6% p.a ????