What’s the best approach for raising rent for a reliable tenant?

Reply to the comment left by Judith Wordsworth at 03/08/2024 – 10:39
Thank you for your most enlightening comment…..that’s extremely helpful ?

I think this thread may have gone a bit off-topic.
First thing you need to do
Is to ensure as some of stated you are charging a reasonable market rate
If you’ve got a good tenant, you don’t want to jeopardise it by overcharging, but at the same time you need to ensure that your safeguarding against future changes.

Also, as someone said, don’t guarantee it for five years
You should get into the habit of a small rental increase every year it’s the professional thing to do!
If there is a big jump in costs you’ve not got to do a big jump in rent.
Use the governments prescribed “form 4”
Make sure you give them The correct notice.
Perhaps send a letter with it explaining why you have to put the rent up.
Make it more personal and friendly with the opportunity for them to discuss it with you

Reply to the comment left by Tim Rogers at 31/07/2024 – 10:01
Putin’s role in inflation and the debt level at a national level is tiny. Prices were already rising well before then, it was caused by the insane lockdowns, bonkers Test and Trace (a waste of £37bn – not just me saying that the National Audit Office did).
Plus, how did the tiny Indian oil field suddenly produce and export so much, Errr!? (not the only country rebadging Russian energy by the way).

Reply to the comment left by Dylan Morris at 01/08/2024 – 10:27
Well said, awake person alert. Someone who accesses other than MSM nonsense.

And finally, there was NO PANDEMIC

What a pity the good advice in this thread got tangled in bickering about the cause of inflation!

Anyway, back to the theme, it does no favours to tenants not to increase the rent every year. They get fail to adjust their expenditure expectations and it comes as an unpleasant shock when the landlord has to increase the rent eventually or they want to move but find that the market has left them behind.

My question is just – for how long have they been paying £800pm? Lets say they moved in earlier this year, then NO, I don’t think a price hike so early on is reasonable. But check the contract. A jump from £800 to £875 is 9.375% … this is a big jump. But not if they’ve not had a rent increase in ’10’ years! The problem is that rents have jumped everywhere.

I’ve just had a tenant leave after about 5 years… paying £575 and the local rents (same street) are in the £800-1000 mark! I am flabberghasted. Be wary if they’re actually let at that price. Upon closer inspection it was 2 beds and each room was e.g. £500 each, so that’s not quite the same, as a whole house. How families are supposed to keep up is beyond me. This all contributes to the cost of living crisis. In my case, I’m turning the 2 bed into 3 bed. Complete refurb (new kitchen, new bathroom) and I’ll do short lets. I don’t trust people will leave when asked when things are like this. With higher rents, before hiking it up on people, just make sure its affordable because I’m not convinced it always is.