Landlord wants to increase rent based on inflation. How can we negotiate the price down?

caprikid1

"The issue with this argument is that the rent shouldn't be based on a landlord's mortgage costs. If these have increased it's between the landlord and their lender, not the problem of the tenant. Rents should be based on the market rate for a property of that condition, in that area."

100% agree that landlords costs are irrelevant. That said I often don't rush to put the rent up and in return get minimal hassle from the tenants. If I see a significant increase in my costs I will then talk to the tenants.

IE Property currently is renting for £950 pcm, market rate is £1300.

I am happy to put the kitchen in they would like but then rent would need to go up to £1200 a month.... I expect the old kitchen is ok .....

sevenhills

caprikid1 said:

"The issue with this argument is that the rent shouldn't be based on a landlord's mortgage costs. If these have increased it's between the landlord and their lender, not the problem of the tenant. Rents should be based on the market rate for a property of that condition, in that area."

Rents should not be set by Government either, although in the real world that is what is happening.

Sarah1Mitty2

sevenhills said:

caprikid1 said:

"The issue with this argument is that the rent shouldn't be based on a landlord's mortgage costs. If these have increased it's between the landlord and their lender, not the problem of the tenant. Rents should be based on the market rate for a property of that condition, in that area."

Rents should not be set by Government either, although in the real world that is what is happening.

Yes, but if the predicted recession turns up rents will go down, the government won`t be able to stop it.

newsgroupmonkey_

Sarah1Mitty2 said:

sevenhills said:

caprikid1 said:

"The issue with this argument is that the rent shouldn't be based on a landlord's mortgage costs. If these have increased it's between the landlord and their lender, not the problem of the tenant. Rents should be based on the market rate for a property of that condition, in that area."

Rents should not be set by Government either, although in the real world that is what is happening.

Yes, but if the predicted recession turns up rents will go down, the government won`t be able to stop it.

Arguably the opposite.
Rental stock is woeful right now. Around Southampton area, it's absolutely dire.

Rents are going through the roof.

Sarah1Mitty2

newsgroupmonkey_ said:

Sarah1Mitty2 said:

sevenhills said:

caprikid1 said:

"The issue with this argument is that the rent shouldn't be based on a landlord's mortgage costs. If these have increased it's between the landlord and their lender, not the problem of the tenant. Rents should be based on the market rate for a property of that condition, in that area."

Rents should not be set by Government either, although in the real world that is what is happening.

Yes, but if the predicted recession turns up rents will go down, the government won`t be able to stop it.

Arguably the opposite.
Rental stock is woeful right now. Around Southampton area, it's absolutely dire.

Rents are going through the roof.

That is because we are not yet in recession, the job cuts are starting though, at delivery/tech and other companies that rely on cheap borrowing.

Titus_Wadd

OP says their rent was increased last year by 4%; is there ever a tenancy clause that suggests a periodic rent review, which might help the OP?  I ask as a someone who hasn't been a tenant for several decades, sorry if that's a stupid question.

lookstraightahead

When I rented I was never asked to increase my rent (whichever property). I was an excellent tenant and I guess that was worth the few hundred extra £ a year. It's a bit short sighted of them if you are a good tenant.

Richard1212

As landlord of three houses, but mainly a larger number of  flats, very good quality and in desirable areas ( all of which are always in great demand), I put rents up as and when the tenancy agreement is nearing expiry, so I do not set a fixed increase at the same time every year----so the increases I impose are normally based on economic circumstances and inflation(and forecasts) at the time.

Since late last summer, (via my property agent, who knows most tenants whilst I am distanced from them and does all the things resulting from my decisions),  I have been asking for an across-the-board increase of 6% ( maximum) rather than 10%-14%, but with exceptions referred to below, though the 10%-14% would be totally defensible if facing a rent assessment panel in view of the inflation levels in double figures which are impacting on me considerably in view of all the costs I must bear in relation to the properties : price increases by all companies who carry out works  due to rise in price of materials and wage increases ; more to pay property management companies, security devices/gated communities installation/maintenance; entry phone system repairs/maintenance, contracts for gardeners and window cleaners and a host of other services for tenants; pay rises for on site managers who are on call for anything from changing light bulbs to preventing iced pathways; contractors for fixing faults reported by tenants from plumbing to electrics to broken window latches / door handles and everything in between; and many many more examples which I will not list here.

I am not a social housing company. I am a private individual who has part of his income and savings in property for the benefit of my family both now and in my grandchildren's time . I think a rise of half the inflation rate is fair. I also take into account prices in different postcode areas by using the Local Housing Allowance figures. In addition, because of the extreme economic mess we are all facing, I have tried very hard to make things easier for tenants until we get through this period, and letters have been sent to all tenants informing them that certain categories of people will have special measures in the form of 3% increases during 2023 : anyone who can provide proof that their income is below a certain amount + all NHS/carers/charity workers + certain other groups which I will not go into here.

My properties' income took a significant fall in 2022 ( just as my shares portfolio faced plummeting market prices) since I made the 6%( and other)  decisions in Summer; and I will lose a much larger amount of property income in 2023. But I am so very lucky and am thankful for my ability to get through economic traumas, when others cannot do so or, at least, find things more difficult than usual. With the policy I have adopted during this crisis, I am hoping that all my tenants will accept the spirit of good will that I have offered and avoid refusal to pay the rents on offer this year-----because this is not a time when I even want to contemplate serving S13 Notices.

So far, all seem to have positive feelings, ranging from begrudging acceptance to great joy.I expect , on this friendly forum, to be blamed for daring to own properties at all and for being a capitalist instead of living rough on the streets. But, hey ho, I live the life I have been given in the best way I know how and I care deeply about social inequality issues that I cannot do anything about in the great scheme of things but which I can do something about in my own small way in my own life.

MattMattMattUK

Sarah1Mitty2 said:

sevenhills said:

caprikid1 said:

"The issue with this argument is that the rent shouldn't be based on a landlord's mortgage costs. If these have increased it's between the landlord and their lender, not the problem of the tenant. Rents should be based on the market rate for a property of that condition, in that area."

Rents should not be set by Government either, although in the real world that is what is happening.

Yes, but if the predicted recession turns up rents will go down, the government won`t be able to stop it.

The government artificially inflate the housing market by paying housing benefit and especially by varying it regionally. There should be one combined benefits amount paid with a housing component fixed nationally. It makes no sense for the taxpayer to subsidise people to live in Chiswick or Cheadle when the majority of taxpayers could never afford to live in those locations. With a national level of housing benefit people on benefits would have to live where they can afford to do, just as the those of us who pay for our own homes have to do.

MobileSaver

lookstraightahead said:

When I rented I was never asked to increase my rent (whichever property). I was an excellent tenant and I guess that was worth the few hundred extra £ a year. It's a bit short sighted of them if you are a good tenant.

You could be the best tenant in the world but, as with any business, if your landlord's costs keep increasing then rents have to increase at some point - it's not rocket science.

We've had many years of low inflation and low interest rates when landlords may well have absorbed small gradual increases but with that now changing I think renters are going to have a shock when their 12 months fixed term is due for renewal. The HPC sell-to-rent brigade in particular may well rue the day they didn't fix their mortgage for five years at historically low rates...