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Rent increase and good tenants
ET1976
Posts: 315 Forumite
Just wondering if it's worth proposing a rent increase in this situation.
I'm currently receiving £700 pcm, originally advertised at £750 pcm but accepted £700 as there was some external building work going on at the time but these tenants did not mind and were able to move straight away leaving me with no void period. There was plenty of interest, so I think I could have got a higher rent if I'd wanted.
Other similar properties in the same street and nearby are currently being let quickly at (advertised) prices of £800 - £950 pcm.
I want to keep my rent £50 below the 'market rate' to remain competitive, and also because I don't use an agent, but even factoring this in, it looks as though I'm charging somewhat below what's achievable.
However, my tenants have been excellent so far, pay on time, keep the place immaculate, so not sure if I should just count my blessings and leave things be rather than risk them moving out over a rent increase.
The contract is out of the fixed term and on periodic, they have been there nearly a year and I would be proposing the increase as of the start of the 2nd year, if I were to do it.
Any opinions?
Thanks.
I'm currently receiving £700 pcm, originally advertised at £750 pcm but accepted £700 as there was some external building work going on at the time but these tenants did not mind and were able to move straight away leaving me with no void period. There was plenty of interest, so I think I could have got a higher rent if I'd wanted.
Other similar properties in the same street and nearby are currently being let quickly at (advertised) prices of £800 - £950 pcm.
I want to keep my rent £50 below the 'market rate' to remain competitive, and also because I don't use an agent, but even factoring this in, it looks as though I'm charging somewhat below what's achievable.
However, my tenants have been excellent so far, pay on time, keep the place immaculate, so not sure if I should just count my blessings and leave things be rather than risk them moving out over a rent increase.
The contract is out of the fixed term and on periodic, they have been there nearly a year and I would be proposing the increase as of the start of the 2nd year, if I were to do it.
Any opinions?
Thanks.
0
Comments
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Do you need the extra money or just feel you should up the rent a bit?
You could up it £20 a month - that way you up the rent, but not enough to disturb them.0 -
Please phone and don't email your tenants with this news. Even if it's a small increase and still good value, it's still not nice news for anyone to receive and breaking it gently and humanely will make it easier to keep things pleasant.
Say your mortgage arrangements are going to change in January (or whenever - as long as it's at least a couple of months' warning) and you'll need to increase the rent but will still be keeping it under market rates. Ask them to do a bit research on comparative rents in the area, and you'll do the same, with the aim of comparing notes in a week.
Once they've had a chance to look round at what's available, they should come back to you and you can agree a figure you're both happy with. Don't forget they're benefiting from not having to pay agency fees or moving costs too.0 -
poppysarah wrote: »Do you need the extra money or just feel you should up the rent a bit?
Don't need it now, but who knows what the future holds and the more I earn now the more I can stash away for the future.
I was thinking maybe a £25pcm increase for the 2nd year with a view to a further £25pcm increase in another year's time (if the market still warrants it then).0 -
That sounds very reasonable to me. A £25 a month increase wouldn't have me scanning the letting agents windows0
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Ask if you can go round and have a chat (as you'll know they can say no...).
Enquire how the tenancy is for them, is there anything they want fixed or changing, etc, are they happy, are they planning to move...
When you have found out what they tell you they want (not the same as what they really want) then you'll have a better idea how they feel... and may be in a position to sound them out on a rent increase..
Cheers!
Artful0 -
£25 sounds about right. Remember after October and defiantly next April there will be a big push down on rents. £25 should keep your tennants happy and still competitive with the coming rent falls.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Why do you say that?
Perhaps the reduction of housing benefit?? I have heard talk on here that it may push rents down. Also the planned cull of public sector workers. My Local Authority is "removing" 1400 posts and has already cut subjects in some local secondary schools.
Debt Free thanks to MSE!!!! £15,000 debt became £0 thanks to some hard work and all you lovely people!0 -
Why do you say that?
October is the big deficit budget with the 25-40% cuts to the public sector. IE lots of job cuts, pay freezes and then the knock on to the private sector.
April is the date of the massive rent benefit cuts.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
0 -
October, April etc - doom, gloom, impending disaster...
Welcome to the fun world of the ConDem government...
Cheers!
Artful0
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