Real-life MMD: Should I up the rent and risk losing a great tenant?

laminki

i concur with much of the above

1) we need to know the actual figures to understand the significance of £250 per month and a little more about your personal circumstances. (I suspect that you are not mortgaged to the hilt, otherwise you would know the market rent full well.)

2) a good long-term tenant with 100% occupancy, no hassles and no estate agent is easily worth upwards of a 25% rent reduction in comparison to having to change tenants every six months with all of those associated costs, hassles (deposit tribunals) and void periods.

3) be very careful before you put the squeeze on this silver goose.
He might not lay golden eggs, but the tenant sees the property as their long-term home and they are invested in looking after it for you.
It sounds like your major historical motivation for being a landlord has been the hassle-free tenant rather than a love of the cut and thrust of the property game (to the extent that you haven't researched the going rent for your property for several years!)
Has that changed? Have your personal circumstances changed?

4) Change the tenant and you risk having to actually work and worry and graft and 'earn' your income as an landlord. That hassle may not be worth the increase in income.

4) if the current sums don't add up then consider selling. if you have been renting the property for 10 years, there is bound to be a juicy capital gain. is the landlord game really for you if you haven't raised the rent in 10 years and you are turning to 'ask the audience' for this type of decision?

Purplechicken

I definitely think its better to have a low rent and a long term tenant than vice versa. It would be unfair to implement such a large increase all at once when you really should have been reviewing the rent regularly over the last 10 years. If you haven't had any major expenditure on the property recently you could wait until you do and then make a reasonable increase in rent. Even then I would keep it below market value to be fair to your tenant and because short term lets mean expense and hassle.

lollipopsarah

Hey youv'e got a good tennent, looking after your property - so your house shouldn't devalue, why risk it.
We recently signed an extra five years to keep the rent the same, son thought we shouldn't have but unless we win the lottery we reckon we will still be here.
xx

Prada_Bunny

As a tennant I was in a similar position 2 years ago. I had been in my flat for just over 10 years. After 2 years of living with rotting floorboards and not complaining the landlord did some major repairs and then put the rent up by £300 a month (approx 30% rise). After being here so long it is my home, so I have stayed.

However, I no longer decorate every year and I do not do the garden any more (except to mow the lawn) I simply do not have the money. Whereas before I would fix things myself I now call the landlord for the slightest thing.

sallyjo_2

It is unfair to your tenant not to have their rent increased incrementally on an regular basis. They are now paying very much under the market value of the rent, and would have trouble finding somewhere else of the same quality. It is also unfair on you. Whilst they are cash-strapped, I would be very surprised if they have not had a rise in their wages in 10 years. Has your cost of living risen in 10 years?

Having a good tenant is valuable, terrible tenants are a curse and you really value this tenant so it is worth keeping them by giving them a good tenant discount, but you are not a charity. Talk to your tenants and tell them you need to put in an annual cost of living rise, and make it a small increase. Tell them you are keeping it small because you value their tenancy in your property.

The advice on this page about getting them to look at help they might get as a keyworker in paying their rent etc is worthwhile. We pay plenty of tax which provides a social net which SHOULD help the low paid in valuable jobs maintain their cost of living, help supplement rent. It is not easy to get the benefits that are available, but worthy applicants should make this effort. Maybe you can find help for them.

charlies-aunt

Good, responsible tenant has paid the amount of rent that you were happy to receive and looked after the property without any problems

If you up the rent and lose this tenant - you will get a new tenant that will agree to pay the higher rent that you would like . but there is a risk that they may prove to be disruptive, destructive, poor/non payers and total pains.

Personally I'd stick with the present tenant and consider small yearly increases in line with the cost of living.

silvergirl

Yes, discuss this dilemma with the tenant. You can both put the case, and may be able to come to some agreement on how to manage your relationship. You sound as if neither is exploiting the other, keep on that track.

A good tenant is golden, and I thoroughly support your interest in sustaining someone doing a valuable job which is low-paid. If you can do it, you are giving to society as well, in a quiet way, the best way.:A

So, no, don't put the rent up if you can carry on as you are. let the tenant know they are valued both as a worker and a tenant. if you are a good landlord, they won't want to leave. And they might surprise you with an offer. A comfortable relationship is always better than turmoil, unless one is a diva, which I don't think you are.
Just talk.

deborah007

I agree with other posts - a small rise would be appropriate but you could do this each year.

Do you do regular maintenance and decoration? I lived in a rented flat for 7 years before buying a house 3 years ago. The flat was maintained ok - albeit repaired rather than replaced - and i was happy with the rent as the area suited me and the flat was ok, Other flats in the block had been modernised and the landlords were charging a much higher rent.

Is your balance that you haven't updated kitchen, bathroom, carpets etc as other landlords may have done? If that is the case then you shouldn't charge the same rent.

Talk to your tenant about this and see if he/she is happy to settle for a lack of up to date facilities for a lower rent?
D x

sgtrock_2

We were on the opposite side as tenants in a property that could have attracted a higher rent. However, we were good tenants and the owners acknowledged this and we were happy when they put the rent up by £10 every year on the anniversary, they always contacted us up first to see if this was okay, and of course it was. Check the other properties out and see about the turnover as one response has already indicated and just think that if they are good tenants you are not guaranteed to get good ones next time. Keep being a nice person and getting what you consider the best deal - good tenants and a steady income.

totmalysh

I lived in the same property for nearly 4 years without the rent increase, when leaving we repainted the walls and cleaned the carpet, the owners were pleased and a council representative who popped in to check the vacated property was quite amazed.
In agreement with the above - a good tenant is worth less pay,as there is no hassle of changing tenants or agency fees or vacant property.