UK Landlord Forum / Life

Average rental incomes were £10,626 in August reports Paragon in its September Buy-to-Let Index. Rents have increased by an average of 2.4 percent over the past 12 months.

http://www.residentiallandlord.co.uk/news1133.htm

I've had a tenant for 2 years, and I haven't increased rent once. She's an excellent tenant- always makes payments, and completely decorated the house out of her own pocket. So I made a conscious decision not to increase rent.

Is anyone considering to increase rent? Or have you in the past? Can be a tough issue to handle with the tenant...

It is a toughy this one.
We should put our rent up in accordance with everything else, this is why people get pay rises etc to pay for the extra cost of everything going up each year.  I think we should put the rent up.  it becomes hard as you state when you ahve a good tenant, thing is if the tenant is a good one then they will understand the reasons for the increase and thus enabling you to feel less unhappy about doing so.  if the tenant gets funny about it give them notice and when you get your new one in make sure it is at the higher rate,

Badger

You dont have to be that harsh mind you.

I think when you have a good tenant and the mortgage is being covered by the rent, leave things as they are. If you raise the rent and the tenant decides to leave, its going to take a few weeks before you get a new tenant in. consider the loss of say, one monthly rent, divide that into 12 (months) are you any better off with the new higher rent? also consider any agent charges for finding another tenant (we charge 2.5 weeks which is cheap).
if it aint broke dont fix it.

Quote from: Badger on October 03, 2007, 02:59:53 PM
It is a toughy this one.
We should put our rent up in accordance with everything else, this is why people get pay rises etc to pay for the extra cost of everything going up each year.  I think we should put the rent up.  it becomes hard as you state when you ahve a good tenant, thing is if the tenant is a good one then they will understand the reasons for the increase and thus enabling you to feel less unhappy about doing so.  if the tenant gets funny about it give them notice and when you get your new one in make sure it is at the higher rate,

Badger

You dont have to be that harsh mind you.

The thing is, it would cost more to find a tenant, as opposed to just keeping the same tenant at the same rate. You get me? I'd be taking a gamble if I try to increase rates.

Quote from: Raven on October 03, 2007, 09:30:15 PM
I think when you have a good tenant and the mortgage is being covered by the rent, leave things as they are. If you raise the rent and the tenant decides to leave, its going to take a few weeks before you get a new tenant in. consider the loss of say, one monthly rent, divide that into 12 (months) are you any better off with the new higher rent? also consider any agent charges for finding another tenant (we charge 2.5 weeks which is cheap).
if it aint broke dont fix it.

I completely agree!

You've inspired me again, Raven. I think i'm going to write an article about this.

You're like Gandoff, from The Lord Of The Rings- wise and inspirational!

And Badgey, you're like Frodo!

Smegal I think
Its all relative isn't it depending on what contract you have with your tenant! And what the relationship is with them.
As for tenant leaving ect, i would have thought you would have a 2 mth clause etc in your contract, what ever you do in business you must always have a contingency, that is one of the things what makes a good business successful.  There is never a need to lose money and with renting property a flap or transitional overlap would ensure you never miss a rent payment whether it comes from tenant 1 or tenant 2 when an old contract ends and a new one starts.
Careful planning.


Badger

Just because you have a contingency, that doesn't mean you should go out of your way to use it.

Relatively speaking, most of the times it's cheaper to keep your existing tenant than replacing your tenant!

Very true, but who is to say you can only have one !!!!!!



Badger