can you increase rent if interest rates go up?

ginger_nuts

if you rent from the council you expect the rent to increase every year .
Why should private rentals be any different .

Jim_B_3

BobProperty wrote:

Can you think of any other business where you have to borrow the major share of an asset with a £x00,000 value and then give complete possession of it to somebody else? (I can think of one, but you can probably take the asset back almost immediately and sue the other party for the balance)

There is no business where you have to borrow the major share of an asset. You chose to borrow the money. You chose to live with the consequences (which you hope will be in your favour, but accept there is a risk of losing out).

Jim_B_3

ginger_nuts wrote:

if you rent from the council you expect the rent to increase every year .
Why should private rentals be any different .

Because a landlord is running a business. A tenant is paying for a service and will pay the lowest they can given market conditions. Why should they pay more just because the landlord wants them to? They're not renting the house because they feel sorry for the landlord and want to give him some income!

Tassotti

So if you r LL puts up rent, would you move?

Jim_B_3

If one can get a better deal elsewhere, of course. Why pay more than you have to for a service? If my local Sainbury's jacked up the price of their goods I'd cross the road to their rival supermarket.

clutton_2

:rolleyes: ""to make large sums of money"" - this is what BAP 98189 thinks.

Landlords who own small 2 bedroomed terraced houses, can, pretty well nation wide, expect to get £100 per month profit from such a property.

When you average this out over a period of years, when you have at least one month void per year, insurance, repairs, etc - we do NOT make large sums of money. We also have to pay tax on this money.

When you first buy a house, the initial costs ( deposit, solicitor fees , mortgage broker fees, mortgage costs, repairs, insurances, marketing, tenant vetting, CORGI, etc etc) are quite high. This often means that no actual profit is made for 2-3 years - especially if repair bills are high.

This is a long term business.

I am sorry that you clearly have had a difficult time with a landlord, but, please don't paint us all with the same brush

The vast majority of my tenants are single mums - i have just spent 2 days trying to persuade one of them to change her behaviour, otherwise, the local Environmental Health Office will remove her sound equipment.

Ultimately, i will have no choice other than to evict her - as her mates are terrifying local grannies. I am, in law, fully accountable and responsible for my tenants behaviour !!! I can be summmonsed to appear in court to account for my tenants behaviour !!! And someone says the law is all on the side of the tenant ? Pleeeeeeeeeeeeease !!

rant over

Jim_B_3

It is a business, though? You are in it to make money? You might not be making much money, but that's just the way the market goes, and you did pick a business in which you knew ful lwell the risks of problem tenants. We sympathise, but being in the residence letting business doesn't get you more sympathy than any other businessman with difficult customers.

Anyway, my real question is as follows: is the OP a tenant or a landlord? I hope they're a tenant; it's frightening to think that there might be landlords out there, running a business, who don't even know how to go about charging for their services. It would indicate a level of professionalism less than the eight year old next door who sells lemonade on her front lawn on hot summer days.

clutton_2

""No - cause you all have the smug gene"" i find this really offensive.

BobProperty

greencat wrote:

.....Finally - if tenants have such a great deal - why do most people in the UK want to buy?.....

It's tradition/what your parents did/seems like a good idea etc. It's just a national characteristic aided and abetted by the tax system.

greencat wrote:

.....And if being a landlord is so bad - why are some many people aspiring to BTL?...

Because the market in Tulip bulbs crashed a while back

BobProperty

Jim_B wrote:

There is no business where you have to borrow the major share of an asset. You chose to borrow the money. You chose to live with the consequences (which you hope will be in your favour, but accept there is a risk of losing out).

You are unlikely to expand and grow any business without borrowing at some point. In the vast majority of BTLs I would think there is money borrowed. Would you like to think of a business where you hand over a £x00,000 asset to someone else, and can't re-gain possession of it without a court order (i.e. ignore the borrowing money bit)?