Putting up tenants rent

ManicMum

Hi there

I am a BTL landlord. I have rented out my 2 bed house in expensive part of the country for best part of 3 years at same rent of £795. Tenant has been great and part of not putting it up was to keep them. However, looking around I am struggling to even find 2 bed flats renting at this amount. Even houses in less salubrious areas renting for more. I think it may be time to put rent up but not sure by how much. Would a rise to £850 be a bit much? I am thinking maybe it is. Is there a general principle regarding rent rises?


advice appreciated. Many thanks

Jowo_2

The principles are that a landlord cannot command any more than market rent and that they have to weigh up the potential risk of a void and a less desirable replacement tenant should the tenant take umbrage and move somewhere else.

There is also a set procedure for notifying the tenant of any proposed increase and a landlord cannot set another one for 12 months. You'll find the info on this on Landlordzone.

ManicMum

thanks for that. I don't think tenant would take umbrage. He even told me to put rent up if I wanted to but decided not to as he is a nice guy. I know, crap business skills there! I think maybe a 5% rise? Will check out that landlordzone.

cheers

Tassotti

Do it in stages if you are worried...825 to begin with

Geenie

I think if you have not increased the rent for 3 years, then you are quite right to look into doing so now. Your local market will dictate what you can expect for your property, and don't be too greedy, as having a good tenant is worth money in the bank. Your house is a business, so approach it as such, but with a fairness to all involved. Good luck OP.

DVardysShadow

Don't confuse advertised rents with the actual rents being paid.

ManicMum

thanks guys. think will go to £825/830. Good tenant is better than money - agree with that totally.

adg1

As a rule of thumb, the last published Retail Price Index figures (google it for the UK) are generall used which normally fall somewhere between 3 and 8%.

Also, a good tenant paying a good level of rent is better than a tenant offering notice to move and be replaced with an unknown entity and all those remarketing costs with an agent!

MoneySavingSpender

In the past, I have printed out some 7/8 pages of similar properties showing their rent, if their rent had not gone up for 2 years or more I mention inflation, albeit not as relevant these days.

I then try to satisfactory demonstrate, from my pov ofc, that basically they are paying under the market rent, that am not trying to extort them but merely asking for the going rent and that if they wanted similar this is what they would have to pay.

Various things at this point tend to occur, some want to think about it, others say they are quite happy at the current rent without letting on whether they would pay more, and the occasional few agree but usually with a few conditions, normally with repairs/upgrades to the house as a condition. Those that think about it can come back with a haggled compromise, or just flat out say no, as I've said in previous posts keep good relations with tenants/landlords but not overly friendly and such discussions should not be a problem.

But me and my family don't use agents, they use me instead lol.

TRRER

You are already getting 795 a month, that sounds enough, if you go ahead with this greediness, you risk him leaving, flat empty for only 1 month and you will need over a year to even come level.

PasturesNew

When you're in a rented place there are usually some niggles, but while things are on an even keel you don't get round to moving. When a rent increase is suggested it's automatic to look around, see if there's anywhere better, nearer work, nearer friends, better parking, bigger garden ... whatever would solve the niggle. Upping the rent therefore will nearly always mean that the tenant looks at their other options.

Also, many people are paid less now than they were 3 years ago. Inflation is for goods, not always wages.