Rent Increases

[Richlist]

I'm in the process of having new bathrooms (X5) fitted in some of my properties and when they are finished in November we have new kitchens (X3) being installed.

Does the forum believe its reasonable to increase rents following these installations and after giving tenants suitable notice ? The rents haven't been raised for around 5 years so are probably overdue. Increases won't exceed market levels and in some cases rents will still be at the lower end...... I'm planning on increases of between 5% and 9%.

[Carryon Regardless]

Some believe you get what you can, but I'm not of that thought.

Like you have, come January I will look at the market rents and pitch a bit below. Where I have similar properties at different standards, the 5 flats for example, I used to vary the rents some to reflect the standard but don't any longer.

Properties need be at an 'acceptable standard' to rent or they just go elsewhere. If it's rentable than it compares to the others on the market. so to my mind should be at market value. If we charge more for the improved palace now then next year (or so) when the T's have applied their fair wear and tear, and it's no longer the palace, should we then reduce rents ?

With good T's I am always cautious not to give them cause to find cheaper so unless your rents are very low now a hike of 9% seems a lot.

[Grampa]

I try to increase the rent not too much that the tenant may give notice over it and with the view that you may have to meet in the middle if they plead poverty.

I don't know what figures you have in mind but I have never had a tenant leave over 20-30 quid. If they ever did, they are likely to tell you it is because of the increase and they were probably thinking of moving anyway.

[Melboy]

I believe it is reasonable to increase the rent by 5% RL

If your rental charge is still within a reasonable price to other rental properties in the area then why not.

I rarely put my rents up whilst the tenant is in occupation but I do review the rental charge when the property comes up for re-let.

Most landlords carry out a 2 year rent review to see if the rents being charged are correct and I normally do just a 2% rise on the slow-drip rent rise principle as I like to keep my long term tenants in place to avoid any "void" periods.

[Richlist]

Thanks for the responses.

My 'problem' is that I have quite a few long term tenants of between 5 & 8 years and in one case 12 years.

In the past I've offered all sorts of incentives to keep these tenants:

* Free use of my Spanish holiday home.

* Returning part of their deposit.

* Freezing rents/ keeping rents below market rates

* etc etc

But after 5 years and some significant investment of £20K+ on kitchens & bathrooms .....its time for a rent rise.

[Melboy]

I have all of the above conditions for my tenant's as well .....except for the use of any Spanish Villa

I don't use an LA at all (except for a flat with our very own Trenner's letting agency on the forum) so my rental charges pan out very well not having to concern myself with commission charges etc..

I think with long term tenants if you look after them well they will look after you and that is not all bad especially for an 'Ol cynic like me.

[Mortitia]

I always struggle with guilt over rent increases - don't know why as I am always hot on repairs and any problems. My average tenancy at present is 3 years.

All my kitchens and bathrooms are high end - makes letting easy. I keep my tenants a reasonable amount of time so I find it easier to increase by £10-20 per month each year - then it is expected annually. Rents are flying high in my area at present but I prefer slow and steady.

Never bought the holiday home - must have slipped up somewhere............

Mortitia

[Carryon Regardless]

My average rent increase last January was a little over 2%. My longer term T's must be ready for the review each year Although if the market doesn't seem to be supporting a rise there isn't one.

I send a letter of notice to each and invite them to demonstrate from comparisons where they consider the rise isn't justified. If any have researched for that purpose I expect they will find the competition to be a little more expensive so that would remove the 'greedy LL' opinions I would hope. None have ever raised the point.

I respond to breakdowns faster than repairs in the main. More often repairs are due to lifestyle and if they create such they can live like that, I don't see it as my responsibility to continually recreate a palace. Fair wear and tear is different of course. I provide floor coverings, window covering (blinds) and a cooker. And a habitable property of course or they would get a bit cold. Where replacements look due, such as a carpet, my preference is to invite T involvement and offer a realistic contribution of so many ££'s. The more interest they have in the property, monitored, the more pride they should have and the longer the tenancy hopefully.

I've one who is too lazy to apply effort toward improvement, although He being skint I offer all the ££'s, so He's saved me money.

Oh, I offer the incentive for all my T's to use my property freely, the one they rent of course.

[Richlist]

Oh, I offer the incentive for all my T's to use my property freely, the one they rent of course.

Its getting even better for my tenants who use my place in Spain.....not only do they get the free use of the property (which includes gardener, cleaner, laundry, utility costs etc) but it now comes with the free use of my car which is delivered to the airport for them and collected from them at the airport on departure. All they have to pay for is their flights........sounds quite generous doesn't it........and kinda makes a small rent increase justifiable.