can you increase rent if interest rates go up?

clutton_2

"Good point but the onus is on the landlord to request an increase at the end of each tenancy.""

i have 2 lots of tenants whose rent i have not increased for 2 1/2 years, or more, because - they Never bother me with maintainance, (they do the odd jobs themselves) they treat my houses like little palaces, and they will be with me for a long long long time - hence my keeping the rent lowish.

But, my other houses which turn over tenants much more quickly, those rents i do put up annually.

i think increasing rents, and having tenants accept that, is, at least for me, a part of the relationship i have with my tenants - but, some other landlords adopt a more hands-off approach than me, and have different views about rent.

F_t_Buyer has a good point in terms of tenant demand - this is why it is so crucial to buy in the right area. If you want to buy a good investment property, establish the demand first, THEN buy the house - not the other way round.

greencat_2

My current rent (in London) is cheaper in real terms than when I was a student in Wales 10 years ago. DVD players are a lot cheaper too.

I guess it's all about supply and demand. There's a massive oversupply of rooms in rundown shared houses in the shadier parts of London. Hence 2 of the rooms in my shared house have been empty for the last six months (1 of them for more than a year). Coupled with that the missus and I regularly fix odd problems and touch up the paintwork. That must be why my rent hasn't increased either in the 3 years I've been here.

I think you'll find most tenants (many of whom can't afford to buy) will have very little sympathy for an interest rate related rent rise.

And if you're a landlord needing a salary increase why not find a way of cutting costs (like the Chinese DVD manufacturers have to do?). Business is a cut throat world I'm afraid.

Tassotti

I think it should be mandatory that rents rise annually in relation to inflation (like all incomes do).

I think 3% per annum is a fair rate rise.

It would give tenants a better reality of what life in a homeowners world is really like, so if they eventually manage to buy, they are better prepared.

If a tenant's sky tv bill goes up by £5 per month, do they still pay it? Course they do.

(getting bucket of water ready for the flaming)

greencat_2

Assuming I thought Sky was worth paying for - which I don't. I always have the option of cancelling - not so easy with housing.

I would be happy with such an approach - if - I had similar levels of security that my parents enjoyed with their council house (and people across the continent enjoy even with private sector housing) i.e. pretty much able to stay as long as you want provided you keep paying the bills and able to treat the house as your own in terms of putting pictures up etc.

But since tenancy law is so biased in favour of landlords - then I'm happy to let the market decide (no other goods or service would go up by a certain amount a year - just so the people using it get a better understanding of what one aspect of another group of people's life is like).

BTW I thought one of the advantages of buying was that your rent to the bank stayed the same (provided you'd fixed your rate - which is where we started). And that you earned oddles of money in equity for doing nothing but sitting on your backside (Hmm. perhaps us renters should be charging for our service of looking after the landlord's house for them while it earns them money?).

I'd be very happy to see this reality of life as a homeowner conferred upon me as a low life scum renter. Can't see it somehow.

People who rent - still pay lots of other bills you know?

As I save 5X my rent each month (my take home is 7 times my rent) towards a deposit for a possible house in the future - I think I have a pretty good idea of what buying a house at the current prices involves.

Tassotti

greencat wrote:

But since tenancy law is so biased in favour of landlords -

Landlords have absolutely no rights whatsoever!!:mad:

F_T_Buyer

Tassotti wrote:

I think it should be mandatory that rents rise annually in relation to inflation (like all incomes do).

I think it should be mandatory that house prices only rise with inflation. But there you go.

greencat_2

Tassotti wrote:

Landlords have absolutely no rights whatsoever!!:mad:

Ahem I think you are wrong:

http://www.bbc.co.uk/dna/actionnetwork/A1186021

If landlords had no rights then I would simply not pay any rent, change the locks and sleep easy content in the knowledge that couldn't be kicked out of my free house (and I doubt quite as many people would have BTL).

Thank you for a most amusing image. Anyhow I have to be off to earn money to pay the landlord's mortgage and reach my goal of having saved enough by the end of the year that the interest on my savings will be paying my rent - but oddly I still can't afford to buy. Only in Britain's crazy housing market would this be possible. Nice chatting.

nelly_2

Tassotti wrote:

I think 3% per annum is a fair rate rise.

It would give tenants a better reality of what life in a homeowners world is really like, so if they eventually manage to buy, they are better prepared.

So you are a lifestyle guru too eh?

Why not make it 4% and use the extra to pay for a dietician/ personal trainer, to be sent round each month to teach them healthy living while your at it.

mi-key

Once a tenancy agreement expires, you can put the rents up to anything you want - BUT - the rental market will always find its own level - everyone and their dog is now a landlord with their BTL investment, so finding a place to rent isnt exactly hard for people.

All you will do if you increase yours and nobody else does ( like the landlords who bought their places 10 or 20 years ago, where the rental income is probably 2 or 3 times the mortgage payments ) is end up with an empty property you are still paying the mortgage on.

babe_ruth_3

The only time I have increased rents is in between new tenants, now I'm in a position of renters that seem to want to stay long term and it's four years since they moved in.

We have had a few mortgage rises in that period but the trouble is I feel a little guilty putting the rent up as I know they can't afford even a slight increase. We have a good relationship and they look after the property.

I know if they were renting through an agent they would have had to have expected increases by now. Any one any thoughts on what I should do?

Going back to OP, I'm pretty sure that there is no hard and fast rule (or law) on rent increases. It's just down to you as it's you property but if you want to keep good tenants you have to be reasonable.