How much to raise rent?

Innys

Hi all

I just wanted your views, if I may.

I am a landlord and am considering how much to raise the rent on my house at renewal in August. If the present tenants choose to stay on, it will be their third year. There was no rent rise last year.

The tenants have always paid their rent on time and I have always fixed appliances promptly when they failed.

As ever, the cost of renting in the immediate area has a big influence on what I should expect to receive. However, with such variability in condition of houses, number of bedrooms, size of bedrooms, number of bathrooms, appliances supplied etc, this is always a bit hit and miss

I have done some research and feel a rent rise of just over 10% will take it to a little under that of similar properties in the area.

Do you feel I'm being reasonable?

Thanks

I

neverdespairgirl

I'm not a LL, I'm a tenant.

10% sounds like quite a lot to me - what if your tenants decide they can't pay or don't want to pay? Good tenants might well be worth hanging on to?

hgllgh

i'm a tenant and 10% rise .... i would be out of here like a shot!!! but .. i've only been here a year so 10% over two years isn't quite so bad. Even so 5% sounds like a more manageable rise to a tenant ... can you imagine your mortgage going up 10%!!

Ladybird20

I am a LL and i agree with neverdespairgirl.....i would leave it and keep good quality tenants...as long as your BTL is self funding...You could up ur monies and your tenants cud move out an go elsewhere,,if u do opt for a rent increase i wouldnt do it quite as much as that..I think to get 3yrs out of a tenant is good going,,i would be doing my best to keep them....The longest i have had out of a tenant is 12mths.My property lets easily its a good let, but i would like the continuity that you have with the tenant in question,,good luck in what you decide

lil_me

I'm another tenant who would leave if faced with a 10% rise. Currently every other cost of living is and has been rising for a while, I would definately not accept such a high rent increase. Also as a point, just because a property is advertised at a specific price, doesn't mean it rents for that. I am paying £75 less PCM than the property I am in was advertised for.

ruggedtoast

One day the Workers will overthrow the landlord classes.

bobby-boy_2

Hi Innys if you have to put up the rent I would look at about 3%. You can charge what you like but good tenants are worth holding onto. If you up the rent by 10% and they leave you are looking at probably at least 1 month void (1/12 =8.3%) so a 3% increase from your current good tenants is more cash than 11 months at the new +10% rate and one void.

Hope this helps

obsessed_saver

5% is just about acceptable. I wouldn't try pushing for anything above that. (I'm a tenant).

missile

ruggedtoast wrote: »

One day the Workers will overthrow the landlord classes.

Then who would put a roof over your head?

ruggedtoast

missile wrote: »

Then who would put a roof over your head?

The masses do not need idle aristocrats living off the fruit of their labours. The houses built by the workers will be returned to the workers.

missile

Innys wrote: »

it will be their third year. There was no rent rise last year.

The tenants have always paid their rent on time and I have always fixed appliances promptly when they failed.

I would think myself very fortunate to have tennants like these and would not raise the rent. If you do want to be greedy, I suggest you discuss it with tennant first and reach a mutually agreeable rate.