Raise rents or not?

useless

JonnyBravo wrote: »

Oooo some tough talking from some tenants..... Your landlord isn't reading this you know.Who are you trying to convince? Yourself?
Of course it is true that good tenants and good landlords are more than happy for there to be a "discount" below market level rents to reflect the mutually beneficial relationship.

Sounds like those landlords thinking of "screwing" their tenants and those tenants who like to think they can lay down the law to their landlord don't have such a relationship.

I think this is an exageration. No one is "laying down the law". Just saying what our response would be if the landlord tried to increase rents above the market rate, and if they were a fab landlord then that would go in their favour.

chucknorris

useless wrote: »

Because we want our next move to be a purchase and we ideally don't want to be tied into a 6 month contract at a new rental place when we are on a 1 month rolling contract. But he doesn't need to know that.

Personally I think £25 difference per month is a bit of a pointless move, would be better to keep where we are and not have any increases. seems the best balance for both parties.

Hope this answer is satisfactory!!

LOL why would the answer be satisfactory (with double exclamation mark oooh) or not to me? Very strange comment indeed.

JonnyBravo

useless wrote: »

Personally I think £25 difference per month is a bit of a pointless move, would be better to keep where we are and not have any increases. seems the best balance for both parties.

:rotfl:Seems the best balance for you more likely.


I think nominal increases in rent are fine. I've twice put the rental I charge up by £10/month. Now does the £120 make any real difference to me? No.
It serves a purpose though. I make sure I let the tenant know I'm keeping on top of current rents and charging a lower than market rent but that I'm also prepared to move rents up if, for example, inflation accelerates. It just helps with the picture of a pro-active landlord.

useless

JonnyBravo wrote: »

:rotfl:Seems the best balance for you more likely.


I think nominal increases in rent are fine. I've twice put the rental I charge up by £10/month. Now does the £120 make any real difference to me? No.
It serves a purpose though. I make sure I let the tenant know I'm keeping on top of current rents and charging a lower than market rent but that I'm also prepared to move rents up if, for example, inflation accelerates. It just helps with the picture of a pro-active landlord.

That's fair enough if £10 per month is keeping it in line with current rents in the market. But rentals in our area are flat. Different places, different markets. We have taken a rent increase before, when the market was stronger, not a problem with it being in line with others. It's over the market rate that is a problem (unless the landlord is doing a really great job, that would help).

useless

chucknorris wrote: »

LOL why would the answer be satisfactory (with double exclamation mark oooh) or not to me? Very strange comment indeed.

Sorry, just my exasperation with every forum thread on here which always starts with questions about why someone (usually the OP but not always) has not done this or that, which is then followed by their answer, which is then deemed wrong or silly, and then the whole thing descends into a slanging match.

chucknorris

useless wrote: »

Sorry, just my exasperation with every forum thread on here which always starts with questions about why someone (usually the OP but not always) has not done this or that, which is then followed by their answer, which is then deemed wrong or silly, and then the whole thing descends into a slanging match.

No problem I think you thought I was being aggressive (I wasn't)

nollag2006

JonnyBravo wrote: »

:rotfl:Seems the best balance for you more likely.


I think nominal increases in rent are fine. I've twice put the rental I charge up by £10/month. Now does the £120 make any real difference to me? No.
It serves a purpose though. I make sure I let the tenant know I'm keeping on top of current rents and charging a lower than market rent but that I'm also prepared to move rents up if, for example, inflation accelerates. It just helps with the picture of a pro-active landlord.

To be honest, I wouldn't bother upsetting a tenant for £10 a month. You are just risking irritating them.

Rents across London are up 10% on average for 1 and 2 bed properties since last May:
http://www.londonpropertywatch.co.uk/s/ph?pc=LON&t=2b&c=r

I usually don't put up rents at all, unless I have a high maintenance whinger. However, 10% is too tempting, and something for which I would be happy to risk a short void for so the tenants will be getting a rent increase over the Summer.

JonnyBravo

nollag2006 wrote: »

To be honest, I wouldn't bother upsetting a tenant for £10 a month. You are just risking irritating them.

Rents across London are up 10% on average for 1 and 2 bed properties since last May:
http://www.londonpropertywatch.co.uk/s/ph?pc=LON&t=2b&c=r

I usually don't put up rents at all, unless I have a high maintenance whinger. However, 10% is too tempting, and something for which I would be happy to risk a short void for so the tenants will be getting a rent increase over the Summer.

Seems like you're defeating your own argument here.

You're happy to put up prices 10% to risk a short void (say one month or 8.33% of the year)???

That leaves you with a whopping increase in rent of 1.67%.
I think you are risking irritating yourself in that situation.



As for me, whilst my survey is n=1, I'm happy to report that the 2 increases of £10 over the last 4 1/2 years have resulted in zero days of void.

nollag2006

JonnyBravo wrote: »

Seems like you're defeating your own argument here.

You're happy to put up prices 10% to risk a short void (say one month or 8.33% of the year)???

That leaves you with a whopping increase in rent of 1.67%.
I think you are risking irritating yourself in that situation.



As for me, whilst my survey is n=1, I'm happy to report that the 2 increases of £10 over the last 4 1/2 years have resulted in zero days of void.

Hi Johnny

My point is that any increase risks a void, and its not something worth doing unless you are happy to risk.

In my own case, its something that I would happily do for £110 pcm, but not for £10. Not worth the hassle, or worth irritating the tenant for small potatoes.

Just my opinion.

IveSeenTheLight

Headcone wrote:

Raise rents or not?
It`s the time of year for rent increases.

But as a caring Landlord should I cut good tennants some slack or just screw them as a good capitalist should?

I've just had a change of tenants on one of my properties and upped my rent by 6.66%.

I've always maintained my rents for existing tenants and have on one of my properties the same tenants for 3 1/2 years.
They are getting a very good deal when compared to the market rate, but I am happy as they are good tenants whom I have not had any problems with.

The questions you should ask yourself are: -
1) Do I have good existing tenants and whether you wish to risk having good tenants by raising the rent
and
2) If you do not have tenants, what is the market rate for similar property in the same locale?