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

MuckandBrass

I am a tenant on a low wage and my (very good) landlord has kept the rent down for me and in return I maintain and look after his property.

I earn less than what is considered enough to live a reasonablr life on for a single person and as a single person with no dependants I am not entitled to housing benefit or any other help. I have applied on more than one occasion and been told I am not entitled to any help from the state at all even though I technically live in poverty.

I get by by working a second job from time to time or overtime.

Rents are hard because you need a good return as a landlord but returns are more than financial in my view.

cazpost

I know I say this every time , but you need to talk to each other!!
It does seem strange that you have never increased the rent previously,I would have thought a small increase each year would have been sensible. As you have a good tenant,you would be wise to hang on to them,so do what you can to help them,by finding out all the facts around Housing Benefit etc,and come to a sensible agreement. I don't think you can expect to raise the rent by £250 in one go.

karanda

In my experience a good tenant who pays rent on time is worth his/her weight in gold. It really depends too on what sort of a landlord you are. If you deal with problems promptly as they arise, have upgraded the property over the years etc etc, then it is worth mentioning to your tenant about the discrepancy in his/her rent and the neighhours. That way if/when you decide to increase the rent, there is a sound basis for it. 10 years is a long time without any increase at all. So you may want to make a token increase which isn't going to impact on your tenant's ability to pay, but which starts things moving in the right direction.

Take into consideration too any improvements the tenant has made to your property, if any, over the years.

DrSheldonCooper

As others have mentioned a little more information is really needed here as to the currently level of the rent, does it include or exclude bills etc.

There is a chance your tenant also has this issue on his mind but isn't willing to bring it up. The level of the 'market rate' will include a element for risks related to the tenant not fulfilling their side of the contract, for you at present this risk premium is almost zero. However, after 10yrs you do have some cause to increase the rate you are charging. One thing to consider could be sit down and find our if there are other things your trusted tenant could do in lieu of some or all of any agreed increase. Do you have other properties which require your involvement in some ways (rent collection, inspections, minor maintainence etc) which you are willing ask your tenant to undertake. Does the property have a parking space which can be rented out, this may mean the tenant has to park somewhere else but would be willing to do so in order to keep the rent down? I am sure others can add some ideas here too.

MadMom

If you were happy with the rent before finding out what your neighbours get then you are just being greedy. It's a similar scenario when someone who's always been satisfied with their salary find out about a colleague that earns more, then suddenly thinks they're hard-done.

Ele123

I am a London renter and my landlady appreciates the fact that we've been in the property for almost three years and are good tenants. So far the rent has gone up each year, but it's always been slightly under the local average rent. I think this is a fair and reasonable deal for all involved. Assuming you didn't buy the property for philanthropic reasons then you should probably put the rent up a bit, but perhaps not by £250pcm in the first instance. Good luck.

bulletproof_1979

You've been losing money on your rent year on year for 10 years. What is your situation like - can you afford this? Has your tennant had no pay rises in 10 years? I'd think a small rise would certainly be in order, but certainly not such a big jump as £250 - talk to him and come to an arrangement, perhaps a small rise now and an agreement to raise annually with inflation...

bulletproof_1979

MadMom wrote: »

If you were happy with the rent before finding out what your neighbours get then you are just being greedy. It's a similar scenario when someone who's always been satisfied with their salary find out about a colleague that earns more, then suddenly thinks they're hard-done.

If they're doing the same job then, quite possibly, they are...

bulletproof_1979

pc1271 wrote: »

Have your costs increased? If not, why do you believe you deserve to take more money from your cash-strapped tenant?

His/her costs have increased every year for 10 years due to inflation, as much as the tenant has a right to a fair rent, the landlord also has a right to make a fair income, no?

JayD

Why not just a small rise? The cost of landlord insurance alone must have risen over the past 10 years, so a rise is certainly fair.

No need to match the rent nearby - just cover your own increased costs.