UK Landlord Forum / Life

How long do you think it is reasonable to let a property without a rent review?  I have had a tenant for 18 months on a 6 month contract. I don't think she will move anytime soon - I would have waited for a change of tenant to reevaluate.  If I wait until the 2 year anniversary would this be reasonable? Its let through an agent so the review would be with the agent in the first instance.  :-

Annual modest increases in rent are a good idea...

It's almost like boiling a frog.

However, in the long-run it's best for everyone... no-one likes a Tenant to be hit with a market rates increase after a decade... it scares them.

Thank you - good advice I think so I've spoken to my agent and have penciled in the discussion in advance of the 2 year anniversary. 👍

The first thing to establish is what is the current market rent for your property. Then factor in whether covid has led to landlords lowering their rents for new tenancies in your area. If your current rent is still below this then its worth talking to the agent.

None of that is really relevant with my "boiling the frog" approach... those modest regular increases can be explained away (if ever needed) by the facts that your own costs are increasing... GSCs cost more (sometimes), the introduction of EICR, Insurance goes up nearly every year regardless... what you intend to avoid is doing nothing for years and then finding out you 'have' to increase the rent in a big jump - that is what gets Tenants searching the market themselves, even happy ones. With a modest increase each year (few %age points or maybe £10 or £15 per month as an absolute) no-one questions it... and over the years you don't lose-out - money and Tenant.

One good example is how I took a starting rent of £570 per month to currently £640 per month... next year it will be £650. That is not in-line with any market rates. My Tenants have never questioned it. At the same time my mortgage payment has gone down over the years. I would not go to the hassle of establishing the market rate... there are two more likely outcomes of that, the most dangerous is that you get greedy and see your property is somehow 'underperforming' in your eyes... and you feel you can jack it up, but you can't... because it scares your Tenants away (possibly even out of the area). Softly-softly-catchee-monkey...

Rents are actually going down in my area.

As I think I've tried to say... that's not relevant in a "boiling the frog" approach.

If you're rent is already at or higher than the average for the area and rents are dropping, I'm not sure that suggesting an increase is going to have the desired effect if the tenants are savvy and know what their mates are paying.

You're missing the point... I can't tell whether it's deliberate because you don't like being corrected, or not... the boiling-the-frog approach doesn't rely on comparisons, it relies on stagnation and apathy... you make too many assumptions in your statement... we don't know if the rent is above market rate, or if rents are dropping... but we do know the Tenants have been in this property for almost two years... and the boiling-the-frog approach relies on regular and modest increases that no-one can find the impetus to balk at. That means annual. If a Landlord says - the rent will increase by £10 a month to at least partially offset my own rising costs - then who could argue?

People don't get on Rightmove for £120 a year... unless they're already struggling to the point where they need to downsize anyway.

Plus, the introduction of EICRs are a good timely reason... Tenants should, obviously, absorb those costs for us (just as Government intended all along). Trickle-down expenses economics.

I am making no assumptions about the level of rent because I'm making a general comment, and I am questioning your apparent assumption that your boiling frog approach is a universal approach. I'm saying that regardless of whether a landlord has increased their rent in the last few years, if rents have dropped locally and the landlords rent is at or above the going rate for the area, the landlord can't rely on a tenants apathy. As I and a few landlords that I know have discovered, in such circumstances a request for an increase can be met with a detailed response from tenants listing all the similar properties in the area that are cheaper and requesting a reduction in rent.

Why answer generally when the OP had a specific question? I offered sound advice which the OP indicates they have now taken. No need to go into irrelevant generalities... especially when you're giving people specific work.