Landlords - would you increase the rent?

MikeJXE

RHemmings said:

I see that you're somewhere vaguely near Ashby. The rises you've been experiencing seem mild compared to what is going on here. 

I left a 3 bed house in Leicester at £620pcm two years ago. I moved into another 3 bed but bigger for £900. However, most of that change was going from under market rent to a market rent. The rent increased last year to £925. Now that I'm leaving, the asking rent is £1100. Given the number of people viewing, I think they'll get asking rent, at least. 

If I had stayed in my rented house, I have no idea what the rent would have been increased to, or whether it would have been £1100pcm or near to that. But, the upwards direction is clear. 

If the OP in this thread only increases the rent a modest and reasonable amount, as seems to be likely given the discussion, I hope that their tenant appreciates that they are being reasonable. 

Spot on I'm just on the outer edge of the Town centre, 3 minutes walk. 

You might or might not know Ashby and close neighbour Packington are the highest property prices in the area.

If my rent went up more than I could afford my next step would have to be Coalville however I could walk to the kids then so a minus and a plus.

[Deleted User]

Are you losing money? Or do you just want more of her's because you feel entitled due to owning a an asset in limited supply?

Can't believe this is even a question. In a cost of living crisis too.

Myci85

I am speaking as a long term tenant of a very reasonable landlady who I have rented from for nearly 15 years. I used to work in lettings so I can appreciate both the value in good tenants and in good landlords. We had many who were purely in it for the profits, every years renewal they would ask us what we thought was the max they could increase the rent to, whilst doing the bare minimum in maintenance. I am grateful that my landlady always sorts any maintenance issues immediately, and in turn we sort what issues we can ourselves, and only contact her for genuine issues. 
You clearly don't sound like one of those greedy landlords or you wouldn't be questioning to increase or not. I can say, the house I'm in now I'm paying far before market rates, which have increased massively the last few years. My landlady has some years increased the rent by £10-20, others has suggested no increase, and I am very grateful that when the cost of living crisis hit, she knew that it was hitting us harder than her and she didn't increase for several years. 
I work in public sector, and whilst I get a payrise each year for length of service, it is nowhere near matched with cost of living. I think that is true for most professions, in fact I've been in several jobs in the past where there is no annual payrise. So whilst your costs are increasing, I expect your tenants are too, and I highly doubt their pay is increasing in line with the costs. 
I can also say that I am well aware of the recent changes that make it very difficult for landlords to evict tenants. My landlady now wants to sell up, as she is getting older and wants to simplify her affairs whilst she can. We are gutted to have to move, but knowing how fantastic she has been for us, we will absolutely be making the end of tenancy as easy for her as possible, rather than refusing to leave. You may not be in any rush to need your property back, but it's worth thinking about that the better you treat your tenant now, the easier they are likely to make your life. 

BobT36

horsewithnoname said:

Mr.Generous said:

Some really interesting comments. I'd like to pose another question - but there's an obvious connection.

Those who work for someone, when you want/get/expect a pay rise is the value of the pay rise limited to only your costs in relation to work? Your travel costs, your work clothing for example. Or do you take into account the cost of living?

As a landlord, believe it or not, I still buy food, clothing, pay energy bills, council tax, car & house insurance and everything else. When the cost of living rises it's not just the tenants who feel the pinch.

Whether I have mortgages or not it's really interesting how judgemental people are. I should only put up the rent in terms of landlord cost increases and take a real terms cut in living standards every year. To do anything else would be unfair on my tenants because I am lucky enough to own property.

On this basis I presume builders only increase their prices in line with material costs and draw the same wage as they did years ago? Mechanics, electricians, decorators all the same. Somehow landlords are different.

I work in the public sector, my pay has fallen in real terms since the first round of austerity in the late 2000s. Fortunately I own my home or else I’d be in trouble like so many of my younger colleagues are. Those who rent have found their rents have gone from around a quarter to around a half of their pay. 

Everyone should be able to make a decent living and afford their lifestyle. 

It’s nice to hear of a decent tenant meeting a decent landlord by the way, hopefully you both value each other. 

In the circumstances you describe I wouldn’t consider a small rise to be outrageous. 

Plus all those rises in bills, council tax, insurance etc. hit tenants in exactly the same way too lol. 
What's worse with that is for ("professional") landlords, tenants are paying the landlord's rises, AND their own. 
And then house prices continue to go up well out of proportion with salaries too so home ownership is an ever moving target. 

Mr.Generous

BobT36 said:

Plus all those rises in bills, council tax, insurance etc. hit tenants in exactly the same way too lol. 
What's worse with that is for ("professional") landlords, tenants are paying the landlord's rises, AND their own. 
And then house prices continue to go up well out of proportion with salaries too so home ownership is an ever moving target. 

Yet the professional Landlord has no other way of getting extra money than increase the rent to keep up with the cost of living/inflation. Pensions rise, wages rise, benefits rise because the cost of living is rising.

I had a chat with her (tenant) and suggested a £15 rent increase - she bit my hand off and started paying from the next due payment. She had a £1500 pay rise this year from a promotion at work.

BobT36

Mr.Generous said:

BobT36 said:

Plus all those rises in bills, council tax, insurance etc. hit tenants in exactly the same way too lol. 
What's worse with that is for ("professional") landlords, tenants are paying the landlord's rises, AND their own. 
And then house prices continue to go up well out of proportion with salaries too so home ownership is an ever moving target. 

Yet the professional Landlord has no other way of getting extra money than increase the rent to keep up with the cost of living/inflation. Pensions rise, wages rise, benefits rise because the cost of living is rising.

I had a chat with her (tenant) and suggested a £15 rent increase - she bit my hand off and started paying from the next due payment. She had a £1500 pay rise this year from a promotion at work.

I know. But it's not like the tenants can just magically get more money either. I'm just saying that bills rising etc. hits tenants DOUBLE, since they're paying their landlord's rises, and their own. Less of course if the landlord subsidises their own rises from their own alternate income, or that of multiple tenants (if they have). 
At some point it reaches a place where the tenants just can't afford it anymore due to that double-rise. 

Glad you worked out an agreement! Shows it was the correct thing to do.