Residential rental increase

theboytheboy

Member
Arable Farmer
Location
Portsmouth
Hi all.

Just wondering what people think is a fair increase in rent for our residential tenants.

Their ast has come to an end and the rent has not changed in the two years they have been with us.

They are great tenants and we would not want to lose them.
But feel it's better to keep putting rent up a little bit rather than leave it too long and then need a huge jump to get back to market rate.

Any views appreciated
 

beefandsleep

Member
Location
Staffordshire
Look at what similar properties are advertised at locally, if they couldn't rent anywhere else for what your asking then they are unlikely to leave.
Have you made any improvements recently, kitchen bathroom etc.
If the house needs money spending on it then I would use that to justify an increase.
 

theboytheboy

Member
Arable Farmer
Location
Portsmouth
House was fully refurbished when they moved in.
Has just had a chap go in and do some "snagging" to deal with the little niggles that have developed since the refurbishment.

Its hard as not very many similar properties around us.

Was wondering to base it on one of the index from the office for national statistics.

I'm probably over thinking it but these guys are the biggest source if income we have and also very easy to deal.
 

chaffcutter

Moderator
Arable Farmer
Location
S. Staffs
^^^ this, I would look at current similar properties currently on offer locally and go for a similar rent. If that looks like a big rise, spread it over the next couple of periods if on 6 monthly agreement.

What I would like to know is if it is possible, and how, to get increases on long standing tenants where the rent is controlled under the 1979 Rent Act ! We have two houses on this stupidly low rent (just over £300/month) and the last time I got the Rent Officer to re-value, he tried to REDUCE it ! Even the tenants agreed that was ridiculous.

OOPs beat me to it,but you could link it to the RPI no problem, can't argue with the facts.
 

theboytheboy

Member
Arable Farmer
Location
Portsmouth
Index of private housing rental prices (IPHRP) in Great Britain

Just found this which has more than enough info and even goes into regional detail which shoes quite a variation depending on your location.
 

Pluto Matt

Member
All tenants will be aware that prices will go up, and they won't be surprised at a small hike - there are three scenarios where they are going to leave:

1- they think the price increase is unjustified
2- they think they could do better elsewhere
3- they are struggling to afford the current rent

The lack of available comparison figures makes me think that 2 above is unlikely. We don't know if 3 is an issue - but assuming that their personal circumstances haven't changes, hopefully not.

With regard to point 1 above, my view would be to be up front with your tenants and that you should try to demonstrate that you are being reasonable. So back it up with some figures - if you choose to use the RPI as your index, then the figures would be:

RPI May 2017 270.6
Less
RPI May 2015 258.0
= 12.6 increase

So the increase in rent would be 12/258 i.e. 4.65%

Other indexes are available!

Personally, if someone took this approach to me, I would accept it.
 

Robw54

Member
Location
derbyshire
Hi all.

Just wondering what people think is a fair increase in rent for our residential tenants.

Their ast has come to an end and the rent has not changed in the two years they have been with us.

They are great tenants and we would not want to lose them.
But feel it's better to keep putting rent up a little bit rather than leave it too long and then need a huge jump to get back to market rate.

Any views appreciated

If they're good tenant leave as is. Not worth a few percent to end up with voids. Make sure they know u held.

Rents not rising at all by us and remember mortgages are getting cheaper and cheaper.

There is a glut since the race to beat the 3% stamp, less folk coming from EU and more buying due to easier finance.

Just my 2p worth as I see the market. I'm a tenant and landlord.
 

Robw54

Member
Location
derbyshire
All tenants will be aware that prices will go up, and they won't be surprised at a small hike - there are three scenarios where they are going to leave:

1- they think the price increase is unjustified
2- they think they could do better elsewhere
3- they are struggling to afford the current rent

The lack of available comparison figures makes me think that 2 above is unlikely. We don't know if 3 is an issue - but assuming that their personal circumstances haven't changes, hopefully not.

With regard to point 1 above, my view would be to be up front with your tenants and that you should try to demonstrate that you are being reasonable. So back it up with some figures - if you choose to use the RPI as your index, then the figures would be:

RPI May 2017 270.6
Less
RPI May 2015 258.0
= 12.6 increase

So the increase in rent would be 12/258 i.e. 4.65%

Other indexes are available!

Personally, if someone took this approach to me, I would accept it.

I'd say go to market and will find another AST which are 10 a penny.
 

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