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

moxxy-girl

We have a tenant and review her rent every 2 years . We know she pays about £50 a month less than other houses in the terrace .... But she is fantastic , keeps the house perfect , redecorates ( through her own choice) every couple of years and is everything a tenant could be.
We don't use an agent , so no fees there. And we obviously never have periods of non - occupancy. So it's a win - win for us AND for her as well.
We have decided not to increase her rent this year.
My advice would be that it depends HOW much lower the tenant's rent is. If it's a large amount maybe a small increase is in order, and then it is fair on both still. The tenant should understand you don't run a charity , and you reflect your appreciation of good tenancy by keeping the rent lower than the rest.

cluntiesmate

If you have a good tenant and a good relationship, why rock the boat?
Warn the tenant that the rent will have to rise a little each year on the agreement renewal date and do so a little at a time.
I hope this helps.
Kev

donny_jim

i think you are a fantastic land lord, but i think it probably is time you increased the rent a little, say 2% per yr from now on.
they may be good tenants but you are not a charity.
just do not be greedy.
even the council puts its rents up.

faerie~spangles

Naive Devil's advocate:

If the rent your good tenant is paying covers the cost of the mortgage/costs on the property, why would you put the rent up? If however you are hoping/willing/planning to upgrade the property. Then discuss those plans with your GOOD tenant and come to an amicable agreement

There are many benefits for a LL in having a tenant who looks after their property.

Mojisola

blameitontheboogie wrote: »

In terms of maintenance the general costs have stayed pretty much the same but over the last year the house has been completely redone - new bathroom, kitchen, carpeting, new back door which has cost roughly a years worth of rent - a rent rise would help offset that cost. In fairness to the tenant though, they didn't complain about it before it was done.[/COLOR]

faerie~spangles wrote: »

If however you are hoping/willing/planning to upgrade the property. Then discuss those plans with your GOOD tenant and come to an amicable agreement

It looks as if the OP has already upgraded, despite the low rent.

A good tenant is valuable but so is a good LL. If I was the tenant, I would want to do all I could to stay with a LL who has kept the rents low and upgraded the property so would be amenable to discussions about a gradual increase in rent.

jchevali

I think you should post a small increase to the rent, something around 5% possibly.

The rent is already very low compared to others, upping it 5% won't make the tenant go (unless he's very mean), and will send the right message that we're in this as a business, not as a charity or out of friendship.

Your rent is your income. How would you feel if you were working for a living and had not had a pay rise for years? I know how I would feel.

You need to try out a small increase and prove to yourself that you have the courage to do this. You owe it to yourself.

rwgray

Good tenants are gold dust. If you relet, you simply must use a managing agent for your own protection and peace of mind, costing you at least 10% off the top immediately. And that's if the new tenants don't invite a dozen friends to sublet, or throw house-wrecking parties, light candles under your curtains, sell the property online or turn the place into a squat.

As a tenant, I once stayed put for more than nine years with only two rent increases. But we didn't require any redecorating or refurbishment, and the much-needed replacement kitchen could be deferred ten years until we moved out.

Rich.x

pennypinchUK

If you think you may lose your tenant if you raise the rent, take an educated guess how long it will take to get a new tenant in at the higher rent. Even a 1 week gap between tenancies will soon eat up any possible higher rent you may be able to get. If you think there's a chance there may be a significant gap between tenancies you should not increase the rent for your current tenant.

That said, I'm certain your tenant has had pay increases in the past 10 years. They were able to afford the rent 10 years ago when they moved in, and should be able to afford an increase now.

Avon2001

Having spent more years than I care to admit working in IT, I'm very wary of changing anything that works. The problem with suggesting a change is that it sets people thinking about change and you might find that a change in the rent, even if it is affordable, might set your tenant thinking about making changes in their life if they weren't before. The question then becomes, how much will it hurt you if they move? You've said that you're down South and your property is up North, do you have friends/family who can keep an eye on it for you? How would you find a new tenant and how would you know if they were behaving reasonably? Personally if I were a long-distance landlord, I'd be looking for the low-hassle option.

bigadaj

Wait for then next review/ contract and increase by £100 this still sounds a lot cheaper than the competition but nearer a fair Market rent, then review annually.