How much to raise rent?

missile

ruggedtoast wrote: »

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.

Go tell that to the down and out homeless in Moscow :rotfl:

olly300

Have you done any major redecoration on the house while the tenants have been there? If not then you should only do a small rent rise otherwise you will find your tenants willing to look else where. You need to remember the rents advertised are not neccessarily the rent the tenant will pay particular if there a lot of properties to rent in the area.

real1314

You said there was no rise last year, but has it been increased from the first couple of years?
I'd suggest that if you really feel that 10% is acceptable (it would have to be below most rents in the area for the tenant to be ok with that) then I'd look at offering a 2 yr tenancy so they know it won't go up again for 24 months at least.

It might help if you gave an indication of how much the current rent is and what the rents are on other local properties that are available.

clutton_2

i would try to increase the rent each year by the RPI index - otherwise if mortgages go up several times in one year again, your tenants will be faced with a huge increase to bring their rent back in line with the local market

RecoveringAlcoholic

If my LL tried to be greedy I would stop paying my rent and move out one day before the bailiffs arrived.

GeorgieB_3

As a landlord myself, and having had a good tenant for the last six or so years, 10% sounds steep. I have increased the rent in my property on an annual basis, and the rise has generally been lower than inflation rises. It's hard keeping hold of good tenants so be wary of raising too much. Good luck.

carolt

Agree, I wouldn't accept a jump of 10% - I'd find somewhere better; unless you're massively underpriced AND a fantastic landlord to boot.

Should add: you may think you're a great landlord (and you may be) but your tenants may not agree. Personally, I can't stand my landlady - but doubt she knows this.

cannycat

10% seems extremely high to me, I moved this year because I thought 5% was too high for the quality of the flat I was renting - and I'm a non-smoking, non-pet-owning, non-child-owning, in-a-professional-permanent-job individual. If my landlord hadn't put the rent up or the rise had been more reasonable, and I hadn't had to cope with a 5% rise the previous year as well, I'd have stayed there at least another year, more probably 2. As it happens, I've ended up in a much, much nicer property, much, much closer to work, for a lot less, so the hassle and expense of moving was well worth it.

How many other properties are there in the area that your tenants could easily move into? Have your tenants had a 10% pay rise this year? Have you?!

Gingernutmeg

Last year our LL wanted to raise the rent by £150pcm on an £850pcm flat, taking it way above what a similar quality (not great) flat in the same area was going for. Had they been a decent LL, who did repairs and maintained the flat well and had there been some room for negotiation then we might have swallowed it, but as it was we moved and they lost tenants who even the LA admitted were 'the best we've got'. Their loss, not mine - seems to me that with all the complaining LLs do about bad tenants they'd be inclined to keep the good ones, but apparently not.

geoffky

10% sounds to me too high and if it was my landlord i would now be thinking are they in trouble and asking me to pay for it...