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A legal question for landlords.



Binney on acid

Well-known member
NSC Licker Extraordinaire
Nov 30, 2003
2,472
Shoreham
I rent a property out and havent increased the rent since the tenants moved in four years ago. We can't afford a decent family holiday this year and are in effect subsidising our tenants. I am under pressure from my partner and our daughter to increase the rent. I'm not greedy and don't want to do anything unethical, but was thinking of increasing it from by about 7%, hardly unreasonable over a four year period. I plan to give the tenants two months warning of this in writing and wanted to ensure that everything is perfectly legal and above board. Even at the increased price the property will remain very competitively priced. Am I going the right way about this?
 

Breesy1

New member
Mar 14, 2013
105
London/Hove
It's entirely reasonable and at the landlords discretion. 7% is not unreasonable over that long a period but a 7% hike overnight will no doubt cause some alarm. To combat that you could include a rent review clause in tenancy agreement or just increase it by 2% or so annually. If you did that you wold be better off and tenants wouldn't bat an eyelid.

2 months' notice is the best play. I would ask for written agreement to that asap so if they refuse you can give them notice, slap on 10% and go let it to others.
 

Springal

Well-known member
Feb 12, 2005
23,682
GOSBTS
7% straight lift is probably a bit harsh, but as stated, if they do leave stick 10% on and find new tenants. Have you checked similar lets in the same area for price guidance ?
 

bhafc99

Well-known member
Oct 14, 2003
7,033
Dubai
Times like this I miss the UK.

Average rent increase in Dubai over the past 12 months: 21%.

Some landlords asking for 60%...
 


nwgull

Well-known member
Jul 25, 2003
13,632
Manchester
Nothing wrong with a 7% increase after 4 years; it's well below inflation. The only risk is that the tenants decide it's too much and move out, and you'll lose what I'm assuming are decent tenants. However, the chances are that they'll appreciate that the rent has not gone up in 4 years and agree to the increase as it'll be more hassle than it's worth for them to have to move out and find another place at a similar monthly rent.
 

Tricky Dicky

New member
Jul 27, 2004
13,558
Sunny Shoreham
I have a flat that is rented out through an agency. Every time the contract is up for renewal, i.e. every six months, they urge me to raise the rent. Sometimes I go with it, sometimes I don't. As a general rule, if the same tenants are staying, I don't increase, but if it's new tenants I do. I've never increased by 7%, usually by maybe by £10 pcm, though over 4 years perhaps that's reasonable. I would say in the future you're better off reviewing more regularly and increasing slowly rather than in one hit.
 

Triggaaar

Well-known member
Oct 24, 2005
49,900
Goldstone
Keep the rent at market rate. You don't want it so high that people can get a lot better elsewhere, and you don't want it so low that you're subsidising the tenants. 7% is not high IMO.
 


Westdene Seagull

aka Cap'n Carl Firecrotch
NSC Licker Extraordinaire
Oct 27, 2003
20,923
The arse end of Hangleton
I rent a property out and havent increased the rent since the tenants moved in four years ago. We can't afford a decent family holiday this year and are in effect subsidising our tenants. I am under pressure from my partner and our daughter to increase the rent. I'm not greedy and don't want to do anything unethical, but was thinking of increasing it from by about 7%, hardly unreasonable over a four year period. I plan to give the tenants two months warning of this in writing and wanted to ensure that everything is perfectly legal and above board. Even at the increased price the property will remain very competitively priced. Am I going the right way about this?

What you're doing it perfectly reasonable and legal. As others have said I'd look to getting a smaller annual increase within the agreement in future. You're unlikely to lose your tenants for 7% if they are happy there and you'll easily be able to re-rent it to other people if it's in Brighton.
 


Billy the Fish

Technocrat
Oct 18, 2005
17,471
Haywards Heath
Check out what similar properties are on the market for at the moment, assuming you are much cheaper because you haven't raised in 4 years, just make it a bit cheaper then the alternatives and they won't move out.

What you've said about the agents urging you to raise the rent proves what I think about them - self serving c**ts :tosser:
 

Baron Pepperpot

Active member
Jul 26, 2012
1,558
Brighton
As a tennant, I would say that 7% is fine if you haven't increased it for 4 years.

The only gripe I would have would be if you tried to force it above the market rate like my landlord did, sending a letter to the effect of 'we are doing it because rented property is scarce and we can....' :rant:
 

LamieRobertson

Not awoke
Feb 3, 2008
46,415
SHOREHAM BY SEA
It's entirely reasonable and at the landlords discretion. 7% is not unreasonable over that long a period but a 7% hike overnight will no doubt cause some alarm. To combat that you could include a rent review clause in tenancy agreement or just increase it by 2% or so annually. If you did that you wold be better off and tenants wouldn't bat an eyelid.

2 months' notice is the best play. I would ask for written agreement to that asap so if they refuse you can give them notice, slap on 10% and go let it to others.

This seems reasonable ...it's alright saying get another tenant in but if the property is left vacant for even a month bang goes the extra you gained and more ..if they are good then that has to be taken into account..likewise if they aren't
 


Sam-

New member
Feb 20, 2012
772
As a former estate agent, I believe the only restriction on rent raises is within the first 6 months of a tenancy agreement (unless you put a clause in the contract allowing it). However, I would urge you to consider the type of tenants you have. If they are always on top of rent and respect the property you may be more inclined to employ a more gradual increase. If your rent has fallen below market levels then you do need to take steps to remedy this.
If you increase it by too much then your tenants may leave to look for other properties. Then the cost of having an empty property as well as having to pay any fees an agency will charge may not be covered by the increase in rent.
I would recommend talking to the tenants and explain that you need to increase the rent. If 7% is not a large sum, then you may be able to increase it in one go. Or introduce it in two stages over 5 or 6 months at 3.5% each time. This will enable the tenants to make adjustments.
 

Baron Pepperpot

Active member
Jul 26, 2012
1,558
Brighton
As a former estate agent, I believe the only restriction on rent raises is within the first 6 months of a tenancy agreement (unless you put a clause in the contract allowing it). However, I would urge you to consider the type of tenants you have. If they are always on top of rent and respect the property you may be more inclined to employ a more gradual increase. If your rent has fallen below market levels then you do need to take steps to remedy this.
If you increase it by too much then your tenants may leave to look for other properties. Then the cost of having an empty property as well as having to pay any fees an agency will charge may not be covered by the increase in rent.
I would recommend talking to the tenants and explain that you need to increase the rent. If 7% is not a large sum, then you may be able to increase it in one go. Or introduce it in two stages over 5 or 6 months at 3.5% each time. This will enable the tenants to make adjustments.

'If your rent has fallen below market levels then you do need to take steps to remedy this' Why ? He's just not greedy. If 7% brings him in below market rate then good on him. Not everyone is 'market' driven.
 

nwgull

Well-known member
Jul 25, 2003
13,632
Manchester
I have a flat that is rented out through an agency. Every time the contract is up for renewal, i.e. every six months, they urge me to raise the rent. Sometimes I go with it, sometimes I don't. As a general rule, if the same tenants are staying, I don't increase, but if it's new tenants I do. I've never increased by 7%, usually by maybe by £10 pcm, though over 4 years perhaps that's reasonable. I would say in the future you're better off reviewing more regularly and increasing slowly rather than in one hit.

Rental agents are the biggest shysters I've ever had to deal with. I used to do mine through an agent and they charged me 10% of my monthly rent to do nothing more than take the tenant's rent and pay it on into my account; they even charge me £30 plus VAT to report my rental income to HMRC (something I did myself in my tax return anyway). I also found out that they had sent a charge to my tenant requesting payment for the AST converting into a periodic tenancy, despite the fact that this is something that happens automatically - in her naivety she paid it! I eventually binned them and managed it myself - even then they tried to tell me I could no longer rent to the same tenant. Absolute scum.

To summarise: I'd recommend that you manage the letting and marketing of any rental property yourself; there really is nothing to it if you've got half a brain cell to rub together. All legal information and pdf downloads etc. that you need is freely available on the interweb, and rentals can be marketed on Rightmove for less than £50 - the average for this service in Manchester (I'm guessing it varies from city to city) is £500+VAT. I'll be happy to answer anybody's questions via PM, and that includes Palace fan landlords.
 
Last edited:

Westdene Seagull

aka Cap'n Carl Firecrotch
NSC Licker Extraordinaire
Oct 27, 2003
20,923
The arse end of Hangleton
Rental agents are the biggest shysters I've ever had to deal with. I used to do mine through an agent and they charged me 10% of my monthly rent to do nothing more than take the tenant's rent and pay it on into my account; they even charge me £30 plus VAT to report my rental income to HMRC (something I did myself in my tax return anyway). I also found out that they had sent a charge to my tenant requesting payment for the AST converting into a periodic tenancy, despite the fact that this is something that happens automatically - in her naivety she paid it! I eventually binned them and managed it myself - even then they tried to tell me I could no longer rent to the same tenant. Absolute scum.

To summarise: I'd recommend that you manage the letting and marketing of any rental property yourself; there really is nothing to it if you've got half a brain cell to rub together. All legal information and pdf downloads etc. that you need is freely available on the interweb, and rentals can be marketed on Rightmove for less than £50 - the average for this service in Manchester (I'm guessing it varies from city to city) is £500+VAT. I'll be happy to answer anybody's questions via PM, and that includes Palace fan lanlords.

As a landlord I couldn't agree more completely with this !
 


Tricky Dicky

New member
Jul 27, 2004
13,558
Sunny Shoreham
Rental agents are the biggest shysters I've ever had to deal with. I used to do mine through an agent and they charged me 10% of my monthly rent to do nothing more than take the tenant's rent and pay it on into my account; they even charge me £30 plus VAT to report my rental income to HMRC (something I did myself in my tax return anyway). I also found out that they had sent a charge to my tenant requesting payment for the AST converting into a periodic tenancy, despite the fact that this is something that happens automatically - in her naivety she paid it! I eventually binned them and managed it myself - even then they tried to tell me I could no longer rent to the same tenant. Absolute scum.

To summarise: I'd recommend that you manage the letting and marketing of any rental property yourself; there really is nothing to it if you've got half a brain cell to rub together. All legal information and pdf downloads etc. that you need is freely available on the interweb, and rentals can be marketed on Rightmove for less than £50 - the average for this service in Manchester (I'm guessing it varies from city to city) is £500+VAT. I'll be happy to answer anybody's questions via PM, and that includes Palace fan landlords.

I've never had an issue with this agent, they do all the work for me, finding tenants etc. I don't have to do a thing. They only charge me 7% , and for me it's worth it - i have no time to sort anything out and would probably sell otherwise. I still pocket £400 odd a month after paying the mortgage.
 

glasfryn

cleaning up cat sick
Nov 29, 2005
20,261
somewhere in Eastbourne
the bungalow we live in is the first place we have rented ever and when we went to sign the next years agreement the agent pointedly said the landlady is not going to put up the rent this year........this after we had put cavity wall and roof insulation in as well as a new boiler admittedly all done on grant work (due to our age and my disability) driven and overseen by ourselves so she has had all this put in for free.
she is now going to put a new roof on one of the conservatories which leaks like a sieve, but only after we threatened to find somewhere else(and there are better places out there if you look) we are not sure if it is her or the rather mercenary agents who rather cheekily asked me to chase up the builder who is putting the new roof in(fqqk me they do have a very hard job picking the phone up lazy gits) more or less saying if you want the job doing then you have to do the chasing (the landlady has already paid for the job to be done).
we are in the fortunate position that our grand-daughter has been a manager of an agency and puts us right on most things.
we stay here because we have good neighbours and it is a very convenient position and she allows us to keep our cats although I do think she thought that the inspection would throw up problems ...................but it came back as immaculate.
so we DO have to be thankful for small mercies
 

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