I have two tenants that are good payers and have been in the property for two years now.
My feeling is that the rent is fair and even on the high end of the market value for what the flat is, so i haven’t put the rent up.
How does everyone feel about it, do you always increase just by a small amount or keep it as it is when you have good tenants?
I had a period of 4 years without increasing the rent. Reviewing the rent each year means comparing it to average market rent and acting accordingly. In my case the market was flat for 4 years.
Good tenants are worth more than a rent increase but then i bought years ago and have no mortgages, so can afford to have that attitude
My tenant is in receipt of benefits so I checked what her maximum allowance was and put it up to just below that.
I increased it by £100 per month but it’s still over £200 less than the same houses in the same road.
I have good tenants who’s tenancy is coming up to its third year in February. I am thinking of not increasing it in February although if they are still with me I will increase it in the following year to cover the additional obligations of the Renters Rights Act and any rental inflation.
Yes, the thing is it was spotless when they moved in as the previous tenants had left it in a state. So we thought let’s put it up quite high to get the right people in. They always pay early, are two professionals, so no family, etc. I know it’s right at the top end for similar properties in the area, I just saw one today on the same road, very similar, advertised for £50 below what we are getting, hence why I haven’t put it up.
But we just changed the boiler recently - previous one wasn’t even broken, but it was old and leaking, so they were nagging me, so was thinking of trying to keep up with inflation and recover some of those costs… also service charge is going up…
@GC111 if you charge top whack you get more demanding customers who’ll want everything perfect but equally if your own costs going up or you have improved the property (new boiler which will save them £ if more efficient) you have a legit reason to increase rent that you can justify to them
Maybe tell them you absorbed increases last year as they have been good tenants but can’t afford to never increase it and have put in the new boiler not faffed about with constant repairs to old- that gives them hope you won’t increase next year shows you care about keeping them comfortable and encourages them to continue to be good tenants.
Obviously level of increase up to you but if too high you risk them leaving esp if other similar properties available nearby. Maybe a small increase to keep pace with inflation (3% at mo)?
Good luck
Just increase it a little because they are good tenants so its an attaboy
Leaving it for years with no increase isnt the best strategy
A new boiler doesn’t justify putting the rent up. It’s part of the maintenance.
@Chris50 certainly some landlords would see it like that if replacing an old broken one; if existing works tho like this case others would see it as an upgrade (rather than constantly fixing an old one which is inconvenient for tenants).
If you put in a new kitchen furniture etc redecorate when not actually necessary it’s an upgrade and the market rent you ask for when advertising would be higher. Same for new boiler.
Best
That’s my point. I replaced it because the old one was having to be fixed more often, but it was working fine, they never had problems of not having heating or hot water. And I wasn’t saying the new boiler was the reason for a rent increase, just that I look after them. I decided to put the rent up by £20 a month, which is just over 1%, so well below the inflation rate and pretty much symbolic. They were ok with it and appreciative.
Not if the old one isn’t actually broken.
I really couldnt be bothered for £20 a month, if they are good tenants I would leave it, £20 seems penny pinching. Imagine what it would cost you if they decided to leave. Void periods, searches, documents,advertising,time, all costs a lot of money
How can ypu check what their housing allowance is?did you ask tenant directly?
You can find out by using the LHA calculator on line, it’s very simple. All areas have housing benefit levels depending on the number of occupants and number of bedrooms in the property.