can you increase rent if interest rates go up?

lush_walrus

F_T_Buyer wrote:

I do think rents 'should' rise at a reasonable rate. Such as everything 'should' rise at a reasonable rate, but that just isn't cricket. The reality is, is that it is a market. Increase supply of rented property and rent inflation is unlikely.

But how many on this site have not had pay rises? It's just a market... and market forces apply.

Spot on!

As with everything market forces dictate prices etc. In my experience if you do charge top rents then you are more likely to get a fast turn over in tennants than if you charge a reasonable amount. Your costs as a landlord are exactly that...Yours and can't be passed down to tennants. It isn't the tennants reponsibility that you are profitable.

Tassotti

But if there was a standard, the market would remain the same (but with higher prices)

People would accept that their rent is going to rise like all their other bills.

Then we wouldn't all have to be altruistic by pretty much giving tenants our properties to live in :rolleyes:

Kaminari_2

Not all Landlords are bad or have a poor opinion of tenants and not all tenants are bad and have a poor opinion of Landlords like our friend hechizero above. I'm sorry to you that you must have encountered a landlord that you feel has done you some injustice and based your opinion on that.

The BTL industry is just another service industry and success has a lot to do with the service provided and customer relation skills. It you are not happy with your service provider than change.

And don't forget that some landlords, like myself, work long and hard and forgo a lot to get on the property ladder - to provide housing for people that either can't afford to buy due to low income or lifestyle choice.

And, living in London, i am grateful to my landlord for the fantastic flat i live in that would cost me double in mortgage repayments and managment fees if i had tried to buy it.

Xbigman

Tassotti wrote:

But if there was a standard, the market would remain the same (but with higher prices)

People would accept that their rent is going to rise like all their other bills.

Then we wouldn't all have to be altruistic by pretty much giving tenants our properties to live in :rolleyes:

If rents rose in line with inflation the property I rented in 1993/4 for £250 would not now be renting for £595. Any sort of standardized rent increase system would eventually go out of alighnment one way or the other.
Regards


X

Tassotti

To Kaminari

You say you are a landlord and a tenant.

Are you trying to get on the ladder by buying an investment to help you out?

Tass

Tassotti

Xbigman wrote:

If rents rose in line with inflation the property I rented in 1993/4 for £250 would not now be renting for £595. Any sort of standardized rent increase system would eventually go out of alighnment one way or the other.
RegardsX

Exactly, what should it be worth now, rental wise?

greencat_2

Tassotti wrote:

But if there was a standard, the market would remain the same (but with higher prices)

People would accept that their rent is going to rise like all their other bills.

Then we wouldn't all have to be altruistic by pretty much giving tenants our properties to live in :rolleyes:

Or if there was a standard which meant higher prices then fewer people might rent - which would mean less money overall.

Around my way - there are loads of properties which have voids. If every landlord in the area agreed tomorrow to put up prices by 3% then some people would inevitably move in with friends/family or out of the area.

As a landlord - unless you are relying on equity increases - it seems to me that you need people willing to pay/able to afford your prices.

If you feel you are giving your services away - perhaps it's time to get into a different business where you are more appreciated/getting more money?

Finally - if tenants have such a great deal - why do most people in the UK want to buy? And if being a landlord is so bad - why are some many people aspiring to BTL?

A situation which is pretty much reversed in places like Germany and elsewhere.

PS. I do accept I have a great deal at the moment (at least in comparision to renting a house from the bank for 25 years)

Tassotti

Ha ha

Don't worry about me,,I will be fine.

However, I would like to take some of your points onboard

Your question " Why do so many people want to be a landlord" or some such nonsense

is because these are the people who know reality and maybe want to get on the ladder themselves one day

I was confused before about people who BTL before they bought their own house. It's because they know in 3 years time they can re-release the funds from that BTL and buy themselves their own home.

These people may well rent to you

michaels

Why would anyone be desperate to buy when in most areas rents are cheaper than the interest component on a mortgage without considering the extra costs of ownership (maintenance, stamp duty, agents fees) - the only reason to buy is to try to take advantage of capital gains which is the same 'deal' the buy to letters are trying to acheive.

In response to the original poster - rents are set by supply and demand, over time they may move with house prices and interest rates (supply will be based on how much it costs for landlords to provide properties) but other factors on the demand side (local economy etc) will also have an impact.

Where I rent demand is strongest in June/July/August as sutdents / teachers / families tend to want to move at this time wheras in the depths of winter no one is really looking so rents are soft so if you are hoping to make a rent increase stick it is probably best to try now - always bearin gin mind how many months of a small rent increase would be required to cover even a single month of 'void'.

A final point for all the long suffering tenants who have posted on this thread. The more the law changes to make things harder for landlords the more expensive it will be for them to offer their property to rent and the higher rents will be to compensate - for example if it becomes impossible for landlords to recover breakages from deposits then they will have to raise rents to cover the average amount of breakages they expect - the winners are those who trash the property - they may pay half the amount that they would have lost from their deposit as higher rent. The losers are the decent tenants who do no damage, they would have got all the deposit back but instead will pay the same extra in rent as the trashers...think about it

bap98189

Kaminari wrote:

And don't forget that some landlords, like myself, work long and hard and forgo a lot to get on the property ladder - to provide housing for people that either can't afford to buy due to low income or lifestyle choice.

Ah so everyone in the BTL market is doing it out of the goodness of their heart and not to make large sums of money are they???:rotfl: :rotfl: :rotfl: