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

samsie

we were tenants in a cottage near school paying as much as we could possibly afford and we were excellant tenants for 3 yrs then he decided to up our rent out of the blue and it crippled us..i tried to tell him that we were struggling but he wouldnt budge so we left and got a flat 200 less than we were paying and with a private garden.he was then gutted we had left and asked the agency to try and get us back and hed lower it back again but we said no.now he has an empty cottage and we have a better life.the sad thing was my kids were gutted as that was their home.i dont know what you are charging but if you were happy with it before you found out what the neighbours were getting then leave it be.our new landlords value us we have even improved the value of their property as my hubby is a builder and has done minor repairs etc at our expense with their permission obviously.they dont up our rent even though they could and they leave us be. we respect their property and make sure we never miss a payment.

jazzali_2

I flatshared with 2 other girls in a 3 bedroom flat in London a while ago, and our landlords tried to put the rent up by £700 per month (from around £560 to £790 per room per month). I don't know if they thought we would swallow it, but given that there was no ceiling lighting in half the flat for over 2 months, and then holes in the ceiling (from fixing the lighting) for the following 8 months (still not fixed by the time we moved out), we didn't feel we owed them any more than the very reasonable rate we were already paying.

We handed in our notice immediately and left, and the landlords have struggled to keep the flat occupied since as their tenants keep finding better deals elsewhere.

If the rise had been £50-£80 per person per month, we probably would have stayed, so if you believe that you need to raise your rent to cover inflation, fine, but speak to your tenant, and do what's reasonable rather than just what you can get away with - as you might not get away with it for long!

KernowChap

As others have said, we don't know the figures but if the market rent is £500 and £250 is being charged then plainly that is not fair and does the tenant no favours long term as they are not living in a realistic world. If the tenant had to move for some reason then they would not be able to afford accomodation elsewhere.

I rent 3 houses. I have bought then over the last 4 years as wrecks and spent months restoring them to very high standards. I cashed in everything I had to do this including endowments, pensions and ISAs and it was hard work. I now get 6% return and reckon the capital will be inflation proof long term too. I do not intend to put my rents up for a long time as I have good, hard working, squeezed middle (sorry!) families as tenants who I appreciate and they appreciate me.

JBM50

I'm a landlord of 2 properties and agree with a lot of the other contributors that a good tenant who pays their rent and respects your property is worth taking a lower rent for.

Obviously you're not running a charity, you do want to make money but a regular income at the current rate may ultimately pay more than having a turnover of tenants/empty periods. It also cuts out the hassle of referencing, registering in deposit schemes etc.

I don't know whether you rent direct or through an agency; often rents are higher if managed by agencies to allow for their fees etc. - this may apply to your neighbours.

I note that one contributor commented on the price of everything else increasing, well this may be true but I've found by holding the rent at the same level, one couple has remained in a flat for 3 years (and I know that money is so tight for them that even £50 a month extra would have forced them to look elsewhere).

My advice would be stick with the same tenants at the same rent and if they do move out in the future, increase your rent then.

corgan69

I rent out a spare room and have always followed the philosophythat if you visibly charge less than the market rent then the tenant will knowthey’re on to a good thing and will not want to screw things up for themselves.I’ve always reserved the right to modestly increase the rent in line with myincreased costs and made a point of explaining why I had, and more often hadnot, needed an increase. Transparent and open lines of communications is whatworks best.

Augustus_the_Strong

Do you need the money? If so, discuss it with the tenant and suggest a small rise in rent. If not, be thankful you've got a good tenant and nothing to worry about. Don't let the love of money eat at your soul.

bigbullyweedave

Having had tenants from hell previously I now really value my current good tenants and do not increase their rent. However, in return I feel no obligation to perform cosmetic improvements to the property (for which they have asked for once). I'd be inclined to keep the rent at its current level - if you do increase it I would have a gradual annual increase rather than a larger amount at once. It really depends on how much you value your current tenant.

maysta

I am a landlord. Yes, a good tenant is worth a great deal, but they are not so rare as all that. In 20 years of letting properties I have only had one really bad tenant. I think you should talk it over with your tenant. Explain that you are getting a very poor return on your investment, that we are all hard up these days and see what kind of compromise you can come up with together. Your tenant can't possibly have thought that he could go on for ever at the same rent. He probably couldn't find anything else of the same standard any cheaper and wouldn't want the hassle of moving. Discussing the situation with him demonstrates that you value him and are willing to take his circumstances into account. But I agree with the others - in future increase the rent by a very small amount each year so that you don't find yourself in this situation again.

LE3

I would say talk to your tenant - start with the "I really appreciate having you as a long term tenant, but the time has come when we need to evaluate the rent. Here are the options:
£25/month increase - everything stays as it is
£50/month increase & they get a small improvement, say redecorating (to their tastes as long as it's not wacky would be a nice sweetener) or a new carpet in the living room or similar type of thing that probably needs doing
£100/month increase & they get a new bathroom or whatever needs doing to the property ...

I was in a property for 8 years & only had one small rent increase in that time, but had the landlord come to me with options I would likely have paid ~£50 a month more to have a new carpet in the hallway & living room (esp one I liked!) or the garden landscaped/sorted out or similar - if he'd agreed to refit the bathroom I'd have been well happy!!

Maureen_Jay

I too am a landlady for one property, which is handled by an agent. Yes good tenants are hard to find but why are you a landlady? You should get a fair rent for the property. I have been in a situation where a fair rent was agreed and the tenant moved in only to go to a rent tribunal and getting a reduction! Tenant from hell. I am a landlady because I inherited the property. Had bad tenants and good. The current tenant for 11years, paying a reasonable rent, but the property is not kept in good order, what is important - the property or the tenant. I think the property and I need the money to keep it in a good order.:p