Rent Increase

[LondonToManchester]

I plan on putting the rent up on my tenents not by much though from £550 to £570. If they decided to leave I will put the flat on the rental market for £550.

[SpiceWorld!]

I plan on putting the rent up on my tenents not by much though from £550 to £570. If they decided to leave I will put the flat on the rental market for £550.

I dont understand why you would do that? If you already have someone paying what you will ask in the market, what is the point of risking a void?

What you describe is what my last landlord did and its still empty - coming on for three months void.

Sheer idiocy.

[LondonToManchester]

I dont understand why you would do that? If you already have someone paying what you will ask in the market, what is the point of risking a void?

What you describe is what my last landlord did and its still empty - coming on for three months void.

Sheer idiocy.

No you do it to create a cycle makes sense long term.

[TopTaff]

I plan on putting the rent up on my tenents not by much though from £550 to £570. If they decided to leave I will put the flat on the rental market for £550.

I don't get this ? please explain why it looks like you are happy with a void in these uncertain times ?

[LondonToManchester]

i won't get a void at 550 i'm cheap for the area

[SpiceWorld!]

i won't get a void at 550 i'm cheap for the area

Yeah, thats what my landlady and agent thought.

[othello]

i won't get a void at 550 i'm cheap for the area

So you're renting out below market rates? Hmmmm. Why?

[LondonToManchester]

So you're renting out below market rates? Hmmmm. Why?

So the place rents out quicker

[Cat in the Hat]

So the place rents out quicker

Sorry, I don't get this either. You're only looking for an extra £240 per year. If you have a void for less than a fortnight, then you are no better off. Even if you manage a quick changeover, aren't there other start-up costs such as cleaning and checks etc? Also, you could be replacing reliable tenants with unknown ones who will cause you grief. You are actively seeking churn to "create a cycle". How exactly does this make "long term" sense?

[LondonToManchester]

Sorry let me explain a bit better what you want is a tenent that will stay for a long time but accepts regular increases in rent (Thats what I was refering to when i mentioned the cycle).

If you get tenents that kick up a fuss over £20 more a month it's better to have them leave as it's usually an indication that there on the edge.

If you get tenents that want to nogotiate downwards and you know they are already paying below market value get rid of them quick.

Hope that makes sense.

[sleepless]

Sorry let me explain a bit better what you want is a tenent that will stay for a long time but accepts regular increases in rent (Thats what I was refering to when i mentioned the cycle).

If you get tenents that kick up a fuss over £20 more a month it's better to have them leave as it's usually an indication that there on the edge.

If you get tenents that want to nogotiate downwards and you know they are already paying below market value get rid of them quick.

Hope that makes sense.

Gret idea. Do it and if they don't appreciate how good you are to them, kick them out and get someone else. Then after a year try it again. Sure that it will work eventually.

[bagsos]

Sorry let me explain a bit better what you want is a tenent that will stay for a long time but accepts regular increases in rent (Thats what I was refering to when i mentioned the cycle).

If you get tenents that kick up a fuss over £20 more a month it's better to have them leave as it's usually an indication that there on the edge.

If you get tenents that want to nogotiate downwards and you know they are already paying below market value get rid of them quick.

Hope that makes sense.

It makes no sense at all LTM.

What you as a landlord want to avoid as far as possible is voids. You are doing your level best to guarantee them. The tenant may well be another HPCer who is telling you that if the value of the asset you are renting too him is reducing (which it is), the rent will reduce too. Not accepting another £20, or asking for a reduction in the face of falling asset values, does not show he is on the edge; it shows he refuses to be gouged. And in case you feel the urge to respond by saying "my mortgage payments are still the same" (which an idiot LL said to me when we had a mini blip in London after the dot com bubble burst); how you financed the property is of no interest to the tenant; he wants to pay a market rate of rent which will depend on the value of the asset.

[renterbob]

Sorry let me explain a bit better what you want is a tenent that will stay for a long time but accepts regular increases in rent (Thats what I was refering to when i mentioned the cycle).

If you get tenents that kick up a fuss over £20 more a month it's better to have them leave as it's usually an indication that there on the edge.

If you get tenents that want to nogotiate downwards and you know they are already paying below market value get rid of them quick.

Hope that makes sense.

If a landlord is so stretched that they need an extra 20 quid a month I would move, as their next step would be reposession, which means I'd have to move anyway so I'd rather do it on my terms.

So, in effect I'd be accellerating the LL reposession.

I'd wave to my former landlord outta the window of my new, bigger, cheaper place and maybe throw him a peice of bread to sustain him for the day.

Is this you?

http://www.allbusiness.com/company-activit...11657916-1.html

Manchester landlord files for bankruptcy

[SpiceWorld!]

Sorry let me explain a bit better what you want is a tenent that will stay for a long time but accepts regular increases in rent (Thats what I was refering to when i mentioned the cycle).

If you get tenents that kick up a fuss over £20 more a month it's better to have them leave as it's usually an indication that there on the edge.

Sorry LTM but your analysis simply doesnt work. If you applied your thiking to our case, our annual rent amounted to 7.6% of our annual income and thus were not "on the edge", just didnt think the price increase was justified.

I dont understand why you think that a tenant has to always accept increases despite the obvious signs prices are reducing in the market.

Anyway, whatever you chose best of luck.

[Cat in the Hat]

If rental rates are currently falling - and I think even the most bearish would accept that - there's no reason for a tenant to accept a rent increase, unless they really want to avoid the hassle of moving.

However, if my landlord tried to push for an extra £5 a week in the current economic climate, I would be off like a shot regardless of the short-term inconvenience. I'd be suspicious that he was having problems servicing the mortgage by chasing a tiny annual gain at the risk of at best hassle and at worst a void. If the LL were a small BTL amateur, I'd be even more concerned given media reports about how such people are getting into trouble.

LTM, this scenario probably doesn't apply to you, but can you see why your plan would be likely to give your tenants the heebeegeebees?

[Flopsy]

Zsolt,

Does your AST state the name and address for your LL? If not, ask the agent to supply this information?

My experience was that the letting agent lied about their contact with the LL when I spoke to him direct. They lied about rent negotiations and were very abusive on the phone.

You may find that the agent refuses to give you the name of your LL as that's a common tactic. The Landregistry website should give you that info but there is a charge (used to be about £3.00). You are entitled to your LL's name and address and I hope that a registered letter to the agent returns this information. I've had to involve legal help and help from my council to get this before though.

Good luck with your negotiations.

[19 year mortgage 8itch]

Sorry let me explain a bit better what you want is a tenent that will stay for a long time but accepts regular increases in rent (Thats what I was refering to when i mentioned the cycle).

If you get tenents that kick up a fuss over £20 more a month it's better to have them leave as it's usually an indication that there on the edge.

If you get tenents that want to nogotiate downwards and you know they are already paying below market value get rid of them quick.

Hope that makes sense.

I'm not normally a member of the Grammer (sic) Stasi but FFS, it's ten-A-nts. Spend that extra 20 quid on a correspondance English course as you will win no friends on here with that attitude.

[LondonToManchester]

If rental rates are currently falling - and I think even the most bearish would accept that - there's no reason for a tenant to accept a rent increase, unless they really want to avoid the hassle of moving.

However, if my landlord tried to push for an extra £5 a week in the current economic climate, I would be off like a shot regardless of the short-term inconvenience. I'd be suspicious that he was having problems servicing the mortgage by chasing a tiny annual gain at the risk of at best hassle and at worst a void. If the LL were a small BTL amateur, I'd be even more concerned given media reports about how such people are getting into trouble.

LTM, this scenario probably doesn't apply to you, but can you see why your plan would be likely to give your tenants the heebeegeebees?

TBH never had any problems most people expect there rent to increase every year. There just greatful it's so small this year

[uncle_monty]

Just secured 15% rent reduction. Asked for 20%, but got pushed back a little. Landlord and EA were very open to doing a deal. This is prime central London.

Anyone agreeing to an increase in this environment is a moron.

Edited May 5, 2009 by uncle_monty

[treeza]

TBH never had any problems most people expect there rent to increase every year. There just greatful it's so small this year

absolute rubbish, i have rented for 12 years and absolutely do not expect my rent to increase every year! In fact if my landlord tried to put my rent up at the moment I would be off like a shot and not because I am anywhere near the edge.

[LondonToManchester]

absolute rubbish, i have rented for 12 years and absolutely do not expect my rent to increase every year! In fact if my landlord tried to put my rent up at the moment I would be off like a shot and not because I am anywhere near the edge.

Dude remember to do the maths £20 more a month = £240 a year

Cost of moving when you factor in fees and excluding hassle is probabaly somewhere around £500-1000.

Is it worth it? Especially if your well settled where you are?

[OzzMosiz]

Dude remember to do the maths £20 more a month = £240 a year

Cost of moving when you factor in fees and excluding hassle is probabaly somewhere around £500-1000.

Is it worth it? Especially if your well settled where you are?

Moving is free whenever I've moved house. I do it myself.

Anyway, move somewhere cheaper thats bigger!

[LondonToManchester]

Moving is free whenever I've moved house. I do it myself.

Anyway, move somewhere cheaper thats bigger!

So you've never had to pay agency fees / credit checks / check in fee and all that other stuff?

You are in a minority if thats true!

[Mrs Imp]

My student landlord was great (probably puts me in a minority). He came to collect rent once a month, and if we didn't have it, he'd come the following week. We stayed for 2 years as we liked the place so much. It was fairly cheap when we got it (about £20 less a month than similar properties). He put our rent up the second year......by £1! and paid for half of our resigning fee. Our house was then £30-40 per month cheaper than similar places. Our letting agent was always pretty good (mostly because our landlord owned their shop too).

LTM, please please please check your splelling and grandma. The occasional typo is acceptable, but I can't read your posts, so it's difficult to see if you're making a coherent argument or not. Ta

[indirectapproach]

Someone I know well has had their s*****y three bedroom apartment in London successfully rented out for the last five years with no problem. When the first tenancy ended, after two years, the rent was upped in accordance with the letting agent’s recommendation.

This guy doesn’t ask tenants that renew for a rent increase. If they pay the rent promptly each month, why should he, is his thinking.

His view is that cordial relations between him and his tenants not only make sound financial sense but also make life more pleasant.