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Rent increase

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Author Topic: Rent increase  (Read 146 times)
Newbie
Posts: 3

I like property

« on: May 28, 2022, 04:17:48 AM »

Hello,
        over a period of around 5 years,I have only ever put the tenants rent up once,by 50 a number of years ago,I have noticed while on Rightmove that rents have greatly increased,the average rental for my type of property is 1,300,the tenant is paying 800,would it be deemed reasonable to increase the rent to somewhere around this figure,thank you!
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Posts: 4466

Abuse Officer

« Reply #1 on: May 28, 2022, 08:17:31 AM »

No.

You've been an incompetent Landlord.

But what is "reasonable"? It's subjective, right?

I would recommend an approach of "boiling the frog". It has always worked for me, but it requires the Landlord (you) to give a crap about your business and not just ignore it for years and years.

It is always worth remembering a few things...

  - the price properties are listed at is not always the rent they will achieve
  - the value of a long-term paying Tenant is incalculable
  - a few days ago you were clearly happy with the 800 (evidenced by the fact you'd done nothing)... suddenly you view a webpage (just happened to notice) and now you want closer to 1,300
« Last Edit: May 28, 2022, 08:42:45 AM by Hippogriff »
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« Reply #2 on: May 28, 2022, 10:26:34 AM »

If you want to increase the rent to match market rates locally you will need to evict the current tenants.No way can you expect them to suddenly stump up an extra 500 a month.Would you like your expenses to soar like that? As said already,they have been reliable for 5 years.Tenants like that are to be treasured. I would increase the rent  by around 75 a month,then if they are still there 12 months later go up again to 900 or so. You may also find some of the higher-priced places have been improved to a very high standard.You are not necessarily comparing like for like.
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Posts: 9

I like property

« Reply #3 on: June 20, 2022, 03:50:10 PM »

Hi, I have been in a similar boat and it doesn't help when friends/family tell you how much you are missing out on now that house rentals are soaring. I have had tenant for over 20 years and am getting nothing like current market value as she is capped by local housing allowance rates. To be fair now her daughter has left home she pays difference between LHA rates between 3 and 2 bed property. That said she looks after the property as if it were her own home, decorates, has replaced carpets, and only contacts me if it is absolutely necessary. My husband also rents a house with a similar problem in that she is an ideal tenant but we are getting nothing like what we could the way the market is. It is a balancing game, good reliable tenant or prospective nightmare. We  have only had a couple of those but the stress was horrendous. You have to factor in the potential making good costs. lost revenue while property stands empty and legal bills if they don't go easily. I would agree the softly softly increase is the best answer
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