Rent rise!

funschine

Just to update, we have successfully negotiated a lower rise in rent:) thanks all you guys.

Sammy85_2

Out of interest, how many years have you been paying 425pcm?

Im in a similar situation with regards to rent increases (only from the landlords point of view)

I currently rent out a 3 bed house for 425, the tenants are good and usually quiet so i havent raised the rent in almost 18months. Similar houses on the same street are now renting in excess of £500 now, as are our other properties. The only reason we have not increased so far is because we didnt want to "rock the boat".

Unfortunately mortgages have gone up substantially in the last 18months and im now having to make up a hefty shortfall because of my softly softly approach.
The next rent increase is likely to be a big one, and unfortunately my tenants are going to get a reality shock. But i hope when they look around and see they're on a level with everywhere else they'll hang around. If not there are plenty of others out there who need to rent, especially with the latest interest rate hikes.

Its an unpleasant situation, that noone wants to be in, but rents go up as does everything else. You cant expect your rent to stay the same forever.

If your flat really is in such a poor state of repair then demand work is done to it, or move on. If you end up paying the full £500 anyway, which if demand is as high as you say, is probably the going rate... then you may as well pay that elsewhere and get a better property for your money.

If you're stuck for somewhere else to go to you could always take out a 6month lease as a short term solution, giving you time to find somewhere else.

Speak to your agency, it is in their interest to keep you there, and its almost guarenteed that your landlord would rather you stay than have to pay finders and set up fees for a new tenant. Try to negociate, offer to meet them halfway.

Hope thats of some help.

funschine

Thanks Sammy
I am in my flat now for two years and we have negotiated with the agency. Now our rent is less than they first asked for.
From a tenents point of view, people rent because they cant afford to get onto the property ladder. I think a rent increase of more than £25 per month is unfair as most people who rent cant afford to pay more at a drop of a hat. Up to a year ago I had to work 60 hours aweek (two jobs)to be able to afford the rent at £425 per month. If you are going to increase the rent, dont increase a huge amount at once. Go with inflation rates instead and that will seem a lot more fair to your tenents too. Your tenents will be much less likely to move out so you wont be risking the flat being empty for a
month or more. If you increase your rent, your tenents have every right to get the flat assess without your permission. And their decision can be legally binding. And dont forget it may be your house but its your tenents home, so make sure you do everything by the book and give your tenents plenty of notice. Especially if you are raising the rent in the middle of the contract. My rent was increased when I had to extend my contract. Also, the more rent i pay, the more repairs and replacements for wear and tear I would expect. If the flat is in need of repairs that are expensive to do, the rent increase could cost you more that if you didnt increase it.

Sammy85_2

Hi,

Firstly, rent should never be raised during the agreement period. Thats not fair on the tenant, they are expecting a set rent for the term (in my case 6months) My tenants have now been in 18months, after the 6 months were up they renewed a further six months and so on..

Personally, if they were to get someone in to assess the rental value of MY property without my permission i would serve them with the required notice and expect them to vacate at the end of the contract. It is a private rental, and i am not forced to rent my property out to anyone who wants it, and certainly not for a rent of someone elses choosing.(as i would be if i was in a council renting scheme such as the one that operates in my area). The rents i charge are fair, in line with every other property in the area (otherwise they'd be empty!!)

I agree that inflation is a reasonable rate of rent increase on a property, in an ideal world, but you have to remember that (based on 2%) that equates to a total increase of only £25pcm over the 2 years. In the last two years my mortgage on the property has gone up by almost £100pcm.

I understand that the majority of people who rent do so because they are not in a financial position to buy and are probably strapped for cash, but that doesnt mean you shouldnt have to pay the going rate.

I work a hard 70 hour week at sea, away from home for 6 months at a time to afford my properties. (so please excuse me for not feeling sorry for those who work similar hours at home, thats life im afraid)

I dont see why i should have to lose potential rental income to subsidise my tenants.

Sorry if ive gone on a bit, but it really wriles me when people expect something for nothing. But thats a topic another thread i think....