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How much should I increase the rent?

tracy1_2
tracy1_2 Posts: 283 Forumite
in House buying, renting & selling
I privately let a two bedroom end of terrace for £575 pcm since the tenants took possesion in Feb 2009. Rent now on track (had some payment problems - but now receive payment direct from HB) I have notified them I will increase it from Jan 2011.
I might speak to a couple of local agents, but wondered if there is a recognised formula accepted by HB, local councils etc.

Thanks in advance for your advice:beer:

Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Why rock the boat? Good tenants? Generally paying on time? Worth their weight in gold!

    Unless the rent is significantly below market rates I'd leave well alone.
  • seraphina
    seraphina Posts: 1,149 Forumite
    Part of the Furniture Combo Breaker
    Also the maximum rate at which HB is paid is due to change soon so you might find your tenants are not actually able to pay any increase...
  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Be a nice landlord to your decent tenants, better the devil you know.

    You might end up back on the same track if they cant meet the deficit between new rent and HB.

    No one says you have to raise the rent.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • brit1234
    brit1234 Posts: 5,385 Forumite
    Big cuts in housing benefit coming in April. You may have to infact reduce the rent to keep them.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    As the others above said.
  • theartfullodger
    theartfullodger Posts: 15,989 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    -5.3%, so new rent will be £544:53...

    Cheers!

    Artful

    PS You are using the right forms/processes to decrease the rent, yes??
  • hbklea
    hbklea Posts: 75 Forumite
    i think now is definately not the time to increase rent, as people have mentioned above. with the cuts coming, job loses and reduction in benefits, things are only going to get harder nxt year, if you've got good tenants, just be happy with that. they're not easy to find.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    honeypopper wrote: »
    Rents go up with inflation and as inflation is rising so shall the rent. Not sure what inflation is rising at at the moment. but someone on here will know.
    Rents don't go up with inflation, there are loads of people who aren't getting any wage rises (and haven't for a few years). Put rents up with inflation and good tenants might have to leave.

    Rents go up based on local rent rates. People pay rent they can afford. Put rents up and people stop renting. I've stopped renting, there must be thousands like me, stopped renting, staying with friends/family for awhile, seeing how things change and turn out.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    honeypopper wrote: »
    Rubbish! You can charge whatever rent you ask for. Not ALL tenants are unemployed and on HB you know!
    The OP's are. And them leaving will leave a void. The cost of the void might be greater than any increase in rent she hoped to achieve.

    It's true you can ask for any rent you want - achieving it is the tricky bit.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Had to cross-post this thread: https://forums.moneysavingexpert.com/discussion/2717801 which just popped up.
This discussion has been closed.
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