this is a tricky situation. I am not saying you are being greedy but that you should be a bit patient wrt timing as this may just come to you anyway. I am not sticking up for your tenant in saying this.
If you have not suggested a rent rise compromise I would not offer the rent insufficiency as an explanation. Indeed you can say what you like including nothing.
If you have told her your thinking about the under-renting I see no harm in telling her that she is getting a bargain and that it would be reasonable in the circumstances for her to be less demanding. (She may not have a bearing on this matter). I also would not evict if there is agreement on the rent rise.
I’ve had a tenant in one of my properties for 8 years now. I’ve put the rent up once (after the first year when I was with an agent). It’s now £150+ (about 22% to put it into context) below the market rent.
But, in those 8 years, she paid her rent on time without fail. She has looked after the house. She has called me for repairs twice (and one of those was when the original 1970s boiler finally died, so pretty justified - I should have replaced that when I bought the house really, but didn’t have a good gas man then because I did everything through the agent).
So, I’m not planning on increasing her rent.
I have other tenants who pay their rent late, constantly contact me with niggles, fail to be there when the repairer turns up and/or are generally a bit rude. They are likely to get a rent increase!!
I’ve been a landlord for 30+ years but what I hate is greedy agents and greedy landlords. I do not use agents anymore because of their greedy nature. I do everything myself. If you want to continue to use your agent then by all means listen to what he says but use your own instincts and trust your own feelings and don’t be greedy.
If you have good tenants you need to keep them, they will want to remain in your property and give them a reasonable rent slightly below market rents. This way you can be certain you are not likely to have a problem with them and they will pay their rent when it is due.
As I understand from briefly looking through the messages, you are getting £935 per month and your agent suggests £1200 per month?
Firstly I would look at the market prices for similar properties on Zoopla and RightMove etc to see what other people/agents are advertising.
But don’t forget that these prices will be negotiable at the time of the new tenancy. So if your agent suggests £1200 per month (your agent is after as much as they can get), I would suggest you accept about £1000 to £1100 per month but if the adverts are about £1100 per month then I would suggest £1000 per month. So in other words about 8% to 10% less.
Where is you property (postcode)? What sort of property is it?
It’s in north Bristol and 2 beds are going for 1200 and that’s the average, I agree 10% below is fair
The agent is fair and could push for more but he’s not like that ,
I will be talking to the tenant tomorrow to come to some conclusion.
Colin
I keep my rent average and maintain my flats to very good standard. I get good comments from most of my tenants as I provide good service. Good tenants do appreciate that. But recently the service charges for the flats are going up and on top of that the major work levies, etc so I have started thinking of selling too. Also when get once in a while very bad tenants that ruins everything but then I always said to myself that there is challenge in every job.
What I have started in property rental that I created a job for myself and it has been difficult sometimes but it has been OK for me so far but I can see so much difficulties rental market in London in future. the main reason is the managing companies are increasing so much service charges and also not doing their jobs right.
service charges in a block of flats can be a killer. I have flats in bigger houses but I own the freehold, so do my own maintaining of the place. Being a joiner is helpful. Everyone will have a bad tenant in their years of owning property
Yes. I would have done same but I realised a few years later. But when I started it was the option I thought I could manage at that time.
Sometimes tenants/ buyers don’t realise the service charge cost for the service they get its just like everything on the door steps just only for residents and security and compare with others flats around in that are. Also the managing agents fees. The government should look into and for how much the managing agents should charge too as its going to be very important for owners and tenants indirectly. In London and other cities its just like a second mortgage
a group of flat owners can manage their own block for maintenance and cleaning and kick out the managing company if the majority agree. but I am not sure of all the details and requirements
Yes it’s depend on the size of block of flats if it’s only
a small block. But this is big gated development with
8 different blocks and 19 townhouses. There are two
different freeholders and on side of 3 blocks are managed
by rtm but they are using same managing company
even.
I have heard so many complaints from about the same managing company as they from other developments.
Recently I found out about the campaign against
that company on the change.org
I could say that until there are not proper regulations for leasehold properties for block of flats it will get harder
for people living in flats in cities.
I don’t think you are greedy, everyone has costs to cover.
We did not raise rent for three years and when we tried for a small increase the tenants became very unpleasant as they had come to expect it to stay the same and to be calling all the shots.
Maybe better to increase a small amount yearly. Can’t do right for doing wrong!
Mrs T
Gees give the guy a break none of us know his story.
I am in a similar situation and have proposed an increase to my only tenant of £50 pcm despite knowing local market rentals dictate a figure £100 pmc is achievable.
This property is my only pension pot.
Yes I’m aware we’re in a perfect storm regarding cost of living rises, I have bills to pay too however I am not running a charity.
My tenant has been given a choice no one is holding a gun to his head. He’s welcome to vacate and find cheaper accommodation which there are in my area.
I was under the impression, according to my agent, that rent increases are restricted to 5%/an. by legislation, and cannot be compounded to take account of previous years absence of increases.
Rebecca3, leslie1 and Colin…You are the sort of landlords we decent tenants dream of!
I had a similar landlord who I rented from a few years 8yrs back. He worked the rent to cover his mortgage and a bit more, decent bloke. I paid on time, looked after his property well, kept it in great repair and only ever bothered him if it was something urgent like a boiler breakdown. You are a rare breed!
I keep my rents below market rate so my tenants stay a while… It helps that I worked as a builder for 50 years, ran a shop for 10 years and currently have an insulation selling business. So no need to screw the tenants for the highest rents. I have made enough money . My childrens wellbeing is far more important than money
I was reading your post and I would like to correct you , the tenant was in a 32hr week job and now a 20hr and at the time rents were more stable and she was well within affordability for the rent at the time.
When is a perfect time ?
And she paying well below market rate and I run a business but where is the line drawn?
And finally she is a pain in the ass .
I said all along I don’t want full market value but a reasonable rent !
Well today I had her dad on the phone threatened to do me in,how he will I don’t know as ex RM