How much for a rent increase?

NoelC

I currently rent out a 2 bed place in South London to a couple of sharers.

They have been there 2 years now, with no rent increase and want to renew for another 2.

Over that time they have been so-so tenants, and we've had a couple of problems with them coming home drunk and causing damage to neighbours' property but that usually gets sorted out quickly.

I was considering putting the rent up by 6% (or £100), as there was no rent increase last year and they have been quite high maintenance.

Thoughts? Should I be putting it up a bit more or less?

danlewi2

Don't put it up at all - they might say no and leave and then your left with an empty property.

jackomdj

What is the rent in the area compared with what they pay? That would determine what I would be changing it by.

RelievedSheff

It depends how the rent compares with other rents in the area and how easily you can relet the property of they decide not to renew.

Owain_Moneysaver

Renew with the current rent but include a rent increase for year 2 with a break clause.

That way you aren't springing a surprise increase on them, but the rent increase from year 2 will take effect without you having to serve notice and terminate the agreement.

Comms69

NoelC wrote: »

I currently rent out a 2 bed place in South London to a couple of sharers.

They have been there 2 years now, with no rent increase and want to renew for another 2.

Over that time they have been so-so tenants, and we've had a couple of problems with them coming home drunk and causing damage to neighbours' property but that usually gets sorted out quickly. - Fail to see how that is any concern of yours?

I was considering putting the rent up by 6% (or £100), as there was no rent increase last year and they have been quite high maintenance. - 6% increase? You having a laugh?

Thoughts? Should I be putting it up a bit more or less?

Does your contract allow you to increase rent?

NoelC

Local properties in the same block are renting for £100 - £150 more, so this would still be at the low end of the market


As for the risk of them moving out - that wouldnt concern me. I have never had a problem tenant, but I seem to get lots of complaints from my neighbours about their loud and drunken behaviour.



Thanks for all your help on this. I will be putting the rent up by £100 in Feb.

need_an_answer

Please ensure you issue the correct paperwork and in the correct timescales to the tenants in order to increase their rent.

Comms69

NoelC wrote: »

Local properties in the same block are renting for £100 - £150 more, so this would still be at the low end of the market


As for the risk of them moving out - that wouldnt concern me. I have never had a problem tenant, but I seem to get lots of complaints from my neighbours about their loud and drunken behaviour. - They're not your neighbours.



Thanks for all your help on this. I will be putting the rent up by £100 in Feb.

Wonder what happens when they decide to stop paying rent...

theartfullodger

NoelC wrote: »

I currently rent out a 2 bed place in South London to a couple of sharers.

They have been there 2 years now, with no rent increase and want to renew for another 2.

Over that time they have been so-so tenants, and we've had a couple of problems with them coming home drunk and causing damage to neighbours' property but that usually gets sorted out quickly...............

If you have written evidence from neighbours or Police of this damage I would evict and get decent tenants instead. And provide either no reference or a full, honest one.



Others may hold alternative views.


Best wishes to all including those who disagree with me.

G_M

* do you wat them to stay? Or do you want rid?
If stay, why are you giving us all this irrelevant info (neighbors damage etc)?
If rid, serve a S21.


* what are local market rents like for similar rentals? How can we advise without knowing this, plus your current rent?


* what does your tenancy agreement say about reviews?


* Rent increases: when & how can rent be increased?