I have been renting my property out in the uk for about 2 years now and I feel its time to raise the rent. I have looked at the rental matrket and feel I can raise it by 50 pounds per month.
What is the best way to do this. Should I just get to the point and sent a letter with the new contract or should I discuss it with the Tennant?
Many thanks
MikeTry to avoid discussing it with the tenant, they will give you reasons why they can’t afford it, and you may give in!
Just let your agent send them a letter saying the rent is going up to $XX per week.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Mike,
Terry got it in one. Never discuss it with the tenant as naturally no one ever wants to pay more money out of their pocket than what they have to.
If this is the first time you’re putting the rent up in two years then they should realise when they get the letter that they’ve had it pretty easy anyway.
easymoney
Hi Mike,
the only thing I can see is that it’s quite a hike in the rent, and you run the risk of losing your tenants. What you’re proposing is an increase of around $32.00 a week, so even if it’s comparable with other rental properties, it’s a lot in one hit for your tenants. Maybe you could split the increase into one increase now and another in 6 months, to soften the blow. Just a thought.
Landt.Mike,
“Looked at” – “feel”….
If this is solid rental market research and you know the position well, obviously the correct action is to ;
just get to the point and send a letter
If you don’t know the market well, and haven’t conducted the proper DD, and you take the above action you will reap what you have sown.
From my experience with the UK rental market – it is totally different to the Ozzy res. market. Landlords in the UK (as a generality) have it far better than Ozzy res. landlords with demand…not sure Ozzy experience is too relevant.
Cheers,
Dazzling
“Go hard or go home”
Hi Kingmike,
I am curious. Do you have any further details about the property eg location size and return. The reason I ask is there has been a bit of negative sentiment about the UK market (hate to generalize like that ). Your post is indicating that you believe the rental market is firming. Do you live in the UK.
.
I agree with the others. Don’t make it personal and try to keep the tenant at arms length.
.
Good Luck.
.i think 50 pounds equates to about AU$121.427… now that seems a bit hefty
AS I said I am quite new to the game so all these replies have helped tremendouly. I a resident of the UK but am still actually travelling right now. I will be home within the next couple of months.
Thank you all
MikeHave you thought about coupling the rent rise with a “value add” that will in turn increase the value of the property.
For example, putting in a new heater/air-con or re landscaping the garden. That way the tenants will atleast feel you care about them and not simply taking more money for the same service. That is something a lot of landlords forget – providing someone a home is providing a service. If your favorite restaurant increases prices without incresing meal sizes or throwing in a free glass of house wine you would not be too impressed. Its exactly the same with tenants and rent increases.Plus the item you put in the property would become depreciable.
Pete
P.S. Keep in mind 50 pound is equal to 50 aussie dollars in local economy buying power. So rasing the UK proeprty rent 50 pound per month is the same as raising rent on an aussie property $12 per week (50/4.3)
…Beware of the dreamtakers…
BTW – I was part of the MAP Program and am more than happy to answer and questions/comments you may have – Happy Investing…
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