Discussion
Surely it's a simple case of keeping it in line with the local rental market?
As a tenant, it's amazed me how greedy some landlords will get come contract renewal time. If you were charging x, now want to charge x+y despite there being loads of other nice properties to rent locally for x, a lot of tenants will just walk. Landlord loses (otherwise happy) tenant, who's already vetted and has been paying their rent on time, loses a month's rent as agency fee, plus any void period in between.
There is a certain tolerable premium in being able to stay in a place and not deal with having to move - but then a lot of people who rent are fairly mobile and it's not that big a hassle.
From personal experience, the only time I've accepted a rent increase was when a load of refurbishment work had been done and the place was looking a lot better for it. London at least remains a renter's market and despite lots of things going up in price, rents aren't.
As a tenant, it's amazed me how greedy some landlords will get come contract renewal time. If you were charging x, now want to charge x+y despite there being loads of other nice properties to rent locally for x, a lot of tenants will just walk. Landlord loses (otherwise happy) tenant, who's already vetted and has been paying their rent on time, loses a month's rent as agency fee, plus any void period in between.
There is a certain tolerable premium in being able to stay in a place and not deal with having to move - but then a lot of people who rent are fairly mobile and it's not that big a hassle.
From personal experience, the only time I've accepted a rent increase was when a load of refurbishment work had been done and the place was looking a lot better for it. London at least remains a renter's market and despite lots of things going up in price, rents aren't.
I used to rent for a while (mobility was key), and never, ever had a rent increase during a tenancy. And was usually in places for 2-2.5yrs.
There would have to be an extremely good reason for me even considering taking an increase, and if asked by a landlord my first thought would typically have been "what's available elsewhere".
Granted I wasn't at the lower end of the market, which may be different.
My other half now rents her place out. Same tenant for 3yrs. No increase in rent. He keeps the place spotless, and has paid his rent on the nose 34 times out of 36 (with the other 2 being bank errors).
As mentioned by sjg, the key thing you have to do is look at the local market for genuinely similar properties. Then you have to look at how good your tenant is, and then how good your money situation is. Hoiking rent a few %age points could very, very easily be offset by getting a s
t tenant next time, having the property empty for a while etc.
There would have to be an extremely good reason for me even considering taking an increase, and if asked by a landlord my first thought would typically have been "what's available elsewhere".
Granted I wasn't at the lower end of the market, which may be different.
My other half now rents her place out. Same tenant for 3yrs. No increase in rent. He keeps the place spotless, and has paid his rent on the nose 34 times out of 36 (with the other 2 being bank errors).
As mentioned by sjg, the key thing you have to do is look at the local market for genuinely similar properties. Then you have to look at how good your tenant is, and then how good your money situation is. Hoiking rent a few %age points could very, very easily be offset by getting a s
t tenant next time, having the property empty for a while etc.Check the local market, and then consider if a rise in rent might upset the tenancy. I belive in below the market rent, with a full 12 months tenancy, better than a 10, 9, or even 8 month let, with redecorating and loss rent. If do increase the rent, remember you have to give 1 months Notice of the same, with the Notice being dated//from the day in the month the rent is paid. If you need a copy of the Notice, then PM me.
Thanks for the replies - all very helpful.
I rented at a level below the market value initially to get a tenant over Winter.
It's fully managed as I've left the area so I've asked the agency if they usually increase the rent at renewal.
I expect they will probably say yes as it increases their cut and, when I rented in the past it was via an agency who always put up the rent at renewal.
I'm not too bothered about the money as the mortgage is covered but I reckon, as it's unfurnished, they'd need a good push to bother to move elsewhere.
Difficult to judge the best move really.
I rented at a level below the market value initially to get a tenant over Winter.
It's fully managed as I've left the area so I've asked the agency if they usually increase the rent at renewal.
I expect they will probably say yes as it increases their cut and, when I rented in the past it was via an agency who always put up the rent at renewal.
I'm not too bothered about the money as the mortgage is covered but I reckon, as it's unfurnished, they'd need a good push to bother to move elsewhere.
Difficult to judge the best move really.
sjg said:
Huge glut of BTL properties, plus the "reluctant landlords" who'd rather rent out a property than sell for less than peak prices = lots of choice for tenants. The credit-worthy ones, at least.
If you can point me in the direction of this glut of properties, i'll have them filled within hours, i'll even cut you in 
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