10:43 AM, 27th August 2021, About 10 months ago 4
Hi everyone, We are managing our rental property ourselves and are lucky enough to have a good couple as our tenants for nearly 5 years. In the tenancy agreement, there is a clause for rent increase which is CPI linked or 3% minimum whichever is higher. We have been increasing our rent at 3% per annum (compounded) for the past 4 years as the CPI has been lower.
The tenants are happy with the property, we have always been very prompt dealing with any issues they raise. However, in anticipation of the coming years, we are slightly concerned that if we keep increasing the rent at 3% compounded, the rent we are charging will be higher than that of the prevailing market for a similar property.
What implications will it have if we venture to offer a rent increase “holiday” until the rest rental market catch up? Or how best to handle this without jeopardising the good position we are in?
We will also be moving soon, do we need to sign a new tenancy agreement with our new address or simply send an email to inform our tenants will suffice?
All advice will be most appreciated.
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