Fair Rate Of Rent Increase?

fcmisc

Hello,

My lodger moved in during mid 2009. I have not increased his rent since then.

I am going to increase his rent in the new year, but do not know how to calculate how much the market has gone up by.

According to Zoopla, the property value has increased by 40% since then, but I do not know whether or not rental yields have fallen.

Thanks,

fcmisc.

G_M

Look at local ads in the paper and Rightmove etc and see what other people are charging for similar properties/facilities/rooms

Pretend to be house-hunting and go in to letting agents to ask for rooms. Get prices.

DRP

fcmisc wrote: »

Hello,

My lodger moved in during mid 2009. I have not increased his rent since then.

I am going to increase his rent in the new year, but do not know how to calculate how much the market has gone up by.

According to Zoopla, the property value has increased by 40% since then, but I do not know whether or not rental yields have fallen.

Thanks,

fcmisc.

I would say the lodgers rent would be more determined by your expenditure (bills) and current rental rates in your area.

I would:

1) work out how much your elec/gas/etc have gone up (assuming the lodgers rent includes the above)
2) look at sites likes http://www.fivenights.com/ and http://www.spareroom.co.uk/ and find out what other are charging lodgers in your area.

:money:

thesaint

For reference, I don't think the word "lodger" was there before. I believe it has been edited.

fcmisc

thesaint wrote: »

For reference, I don't think the word "lodger" was there before. I believe it has been edited.

I don't understand. I definitely have not edited the original post.

thesaint

fcmisc wrote: »

I don't understand. I definitely have not edited the original post.

Sorry, must be my eyes then.
Have you spoken to your lodger about it?

BitterAndTwisted

A fair increase is bringing it up near what the average is for a room in a similar property in the same general neighbourhood.

Just because the property-value has increased by 40% (as if) doesn't necessarily mean that the rent for a room has risen by the same percentage.

fcmisc

thesaint wrote: »

Sorry, must be my eyes then.
Have you spoken to your lodger about it?

Briefly. He offered to pay more after I got made redundant. But I can't put the rent up just because of that as it's a bit weak. But I was thinking of putting it up in January anyway, so told him that. I don't want to put it up cruelly.

Looking at nearby flats from spareroom.co.uk, the average rent in my vicinity is £670 pcm excluding bills with a standard deviation of £158 (£520-£800). But that does not include bills. At present he pays £500 including bills.