landlords/ladies. rent increases

begbeer

how often do you put the rent up in your btl houses, when you get a new tenant? once a year based on inflation? or what?

Cannon_Fodder

rents are often staying the same or heading down, as there is over-supply in the market due to accidental landlords who are renting out while they cannot sell...

Jowo_2

Some general advice that I've seen on this topic reiterates that a landlord can only ever charge market rent - whatever the going rate is for the type of property in that particular area. Inflation is irrelevant.

Also, some landlords are loathe to increase rent if the current tenants are reliable - no sense in encouraging them to shop about and move out and then the landlord experience a void that would wipe out any modest increase in rent.

Kaz64_2

As a newish Landlady of just 18 months, I have been lucky to have landed a good tenant, which to my mind is more important than making a few extra quid each month. The rent covers the mortgage for the next couple of years (am on a fixed), so I will leave well alone.

pinkshoes

It depends on where you live and how much you like the tenant.

If it's a good reliable tenant, it's probably best not to raise the rent at all!

There's been massive changes in rental prices recently due to lots of people renting their properties after being unable to sell.

Good properties in good locations have seen rent increases, whereas those in less desirable areas have seen large drops in rental price.

Yorkie1

My landlord (I've been renting this place for nearly 12 years) is rather an amateur in understanding how to approach tenants.

He first put the rent up in a phone call, saying he'd have to sell the place if I didn't agree.

Then it went up a couple of years later again "owing to circumstances".

For the last 3 years it has gone up every November in line with either the RPI or CPI (haven't got the document in front of me) subject to a minimum of 3% increase and 10% max. Unorthodox to say the least but as I pay under market rent I've not previously bothered to challenge him about it.

However, this last increase has felt like the last straw - he's erratic in his responses, hasn't mended two water leaks in the roof, and an annual increase of 3% when inflation is actually negative - so I've decided to walk with my feet and am in the process of hopefully buying a house.

Don't take your tenants for granted, find out what your local conditions / methods of increasing rent are, and don't unsettle them with threats of selling the property if they don't agree - it just makes you look like an amateur or unreliable landlord.

N79

All rents get reviewed annually. Any changes are made at the first suitable point thereafter.

new_home_owner_3

I wont bother with mine until the mortgage goes up, im happy with what im getting, ill re assess the situation in either 4 years when my fixed rate deal finishes, or ill take a look if my tenants decide to move out.

Its pointless being too greedy, house prices will go back up and so will rent, but putting your rent every year is a bit much and i think if there good tenants they should be rewarded for their loyalty, remember they are the people paying yout mortgage.

VfM4meplse

Kaz64 wrote: »

As a newish Landlady of just 18 months, I have been lucky to have landed a good tenant, which to my mind is more important than making a few extra quid each month.

Agreed. I only ever review when a tennant leaves which is not very business minded but sacrificing a few quid a month is worth it if it saves hassle in repairs and buys me peace of mind etc.

LydiaJ

Someone I know was in a house for about four and a half years at £600pcm with no increases over that time. His tenancy came to an end recently. The landlord has redecorated the place (which already badly needed it when the person I know moved in).

I was in the LA's office talking to them about it and the woman in the LA commented that it was a shame the tenant had had to put up with the dreadful decor for all that time and the LL was only redecorating in order to get a new tenant. I pointed out that now it had been redecorated, the LL had put the rent up to £625pcm. She said "Oh, but that'll come back down to £600. People don't just accept the price any more - they come in and make an offer."

bristolgymdude

I feel that even if the amount of rent followed the market as recently rental prices have decreased, feel that landlords should also reduce rents per month. The property I am currently renting is now considered expensive, which is why I am buying my own property which is going to save me about £300 per month.