Rental Increases for private tenants

[kurt535]

Just wondering what - if any - landlords are putting their rents up by this year? Im arriving at a 4.7% increase of which @2% is going towards hikes in insurance premiums etc.

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[troika]

Zero increase. If I have a decent tenant, I want to keep them and not annoy them.

[kurt535]

troika said:

Zero increase. If I have a decent tenant, I want to keep them and not annoy them.

thats fair enough. however my rents have always been below those around me but some prices ive been given this year are well above RPI so raising by RPI seems appropriate

[troika]

kurt535 said:

thats fair enough. however my rents have always been below those around me but some prices ive been given this year are well above RPI so raising by RPI seems appropriate

Surely rents are set by the market, not by the RPI or cost of insurance premiums etc?

[kurt535]

troika said:

kurt535 said:

thats fair enough. however my rents have always been below those around me but some prices ive been given this year are well above RPI so raising by RPI seems appropriate

Surely rents are set by the market, not by the RPI or cost of insurance premiums etc?

rents are indeed set by the market and im below them for my area, hence how my tenants stay for 5 years plus. however, some increases are now required so i was interested what figures landlords look at using

[James_B]

I’ve two properties each in a three year let. The first has a clause that it increases annually at RPI, the other is flat for the period.

I am not sure that I will put the first one up as it’s become clear that I have a very good tenant, and I prefer not to rock the boat at all.

[romeogolf]

I don't increase the rent unless a tenant leaves and the market has moved on. Unless my costs have increased hugely, it's not worth it.

[andye30m3]

romeogolf said:

I don't increase the rent unless a tenant leaves and the market has moved on. Unless my costs have increased hugely, it's not worth it.

My feeling is the same, I have 2 flats I rent out, I currently have nice tenants in both so the last thing I want to do is upset them for the sake of £25 a month.

If they leave I'll review the rent against what else if available in the area.

[croyde]

I've lived in 3 rented properties in the past 4 years, thus am always keeping an eye on prices.

Seems to be a tenant's market both here in SW London and in Surrey.

The place I left in Surrey was back on the market with a £25 hike in monthly rent and stayed empty for 8 months.

Place I rented here in SW London were only too eager to take a lower offer on what was advertised. I also see places taking ages to rent out again in the surrounding area.

I also own a house I can't shift as well as a motorbike lol. Both have had their prices slashed.

Seems as others have said, if you are happy with your tenants, keep them happy.

Despite what estate agents say, things ain't good in the property market.

[98elise]

troika said:

Zero increase. If I have a decent tenant, I want to keep them and not annoy them.

This. A bad tenant will cost you many thousands in a very short space of time. A good tenant is worth keeping sweet.

[Kiribati268]

andye30m3 said:

My feeling is the same, I have 2 flats I rent out, I currently have nice tenants in both so the last thing I want to do is upset them for the sake of £25 a month.

If they leave I'll review the rent against what else if available in the area.

I've always believed this is the best way to go about it. My previous landlord didn't increase the rent by a penny in the 4 years I was there.

My current one isn't so simple. My contract is actually up for renewal next month. I have received an offer for another 12 month contract with the rent being increased by £10 a month. I'm pissed about that. It's not the money, £10 a month is nothing, just the lack of thought or appreciation.

Rent paid on the dot every month, I look after the place and treat it well. I'm half tempted to tell them to shove it for the sake of a tenner a month but moving is stressful and a lot of effort.

Not sure whether to negotiate and offer my current rent amount or just pay it and look to move out much sooner than I thought I would have if this fkwhittery never happened.

I would just leave it and go onto an AST, but i'd like a bit of security and stability for the time being.

[dazwalsh]

As above i dont think ive ever had the notion to raise rents, particulary if they have been good tenants. Although there is one family in my old house who has been there 11 years now, paying 700 a month when a house of that size in that area should be fetching near on double that these days. Im probably “losing” 6k a year which is not pocket change. It also needs a major overhaul so will unfortunately have to evict them sometime next year anyways.

Mostly though rents are reviewed at changeover tending to go up rather than stay the same such is the demand in my area for decent housing.

[kurt535]

thanks all.

Ive raised it by the RPI. My situation was i bought two new build houses off a developer/landlord. they have been great for many years (7 infact). However, developer sold off his last remaining houses with tenants on the site this year and has now presented every freeholder with a £340 annual management fee for communal areas. Up until now this hasn't been an issue but with no real answer why there is a sudden need for the annual charge (yet) he has put quite a few noses out. Clearly our own freeholder management company is preferred but with so many landlords now owning the properties it could be difficult to sort out. However, my tenant's rents have been consistently £50-100 under the market rate so, the additional charge has made me realise I needed to increase it. Even with it, Im still below market rents.

Thanks for your responses!

[kurt535]

98elise said:

troika said:

Zero increase. If I have a decent tenant, I want to keep them and not annoy them.

This. A bad tenant will cost you many thousands in a very short space of time. A good tenant is worth keeping sweet.

Id also argue a good landlord is also equally worth keeping sweet. House maintenance issues aren't free to fix and insurance companies dont give a stuff raising annual premiums 12.5% even though people haven't claimed!!

[Venturist]

My last landlord wanted to Jack the price up 10% at my renewal, which amongst other things pissed me off enough that I told them to shove it. It stood empty for months meaning if they did find a tenant willing to pay the higher rate it will take them several years to make up for the void period.