ae2meln
Registered: 14/06/07
Posts: 3
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Reply with quote | #1 |
I've been renting my flat out for approaching 6 months now & have had no problems at all with the tenant.
The tenancy agreement is for 6 months, and after this monthly rolling, if the tenant chooses to stay.
In view of all the interest rate rises recently (& the prospect of more to come!) I'm thinking of increasing the rent by around £40 per month.
Does anyone have any thoughts on this, especially considering this increase will be only after 6 months, and not a year.
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corymilan1
Gold
Registered: 04/07/06
Posts: 226
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Reply with quote | #2 |
It is pretty soon. What are you increasing it from? I usually increase rents at the beginning of a tenancy if I can and keep rises during a tenancy to a minimum. What is the likelyhood of your tenant staying beyond a year? If all your costs are covered it may be wise to wait until then. Also check out the market rates for your property in the area so you have some reasoning behind the increase.
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Antoni
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ae2meln
Registered: 14/06/07
Posts: 3
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ae2meln
Registered: 14/06/07
Posts: 3
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Reply with quote | #4 |
It's currently £759 pcm so I think £799 pcm is justified & would still be a market rate I reckon. As for how long he'll stay, he's already said till the end of this year, which would be about a year.....
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LynseyinLondon
Bronze
Registered: 20/06/06
Posts: 12
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Reply with quote | #5 |
I agree with the landlord in this case if (s)he feels a rent rise is justifiable. Try to keep relations diplomatic, but if the AST was for only 6 months in the 1st instance there is no reason not to imlement a rent raise - do not be afraid. However, on the flip side you have to realise your tenant has the option to say no to a rent increase and end the tenancy.
Importantly, did you create a statutory paragraph in your original AST for a rent rise? It would sound not, in which case you must issue the correct document and the tenant does have the right to take the matter to a rent tribunal - which is a bit pointless given that you could then end the tenancy with 2 months notice should the tribunal find your property to be not worth the increase.
I am of personally of the opinion that still too much "leniency" and leeway is given to tenants who choose to run up bad debt, and the legal "powers" a Landlord does have I believe should be implemented when a landlord feels it right/in his business interests to do so. This is not greed, it is normal business practice - if he is wrong he will lose his tenant and find him hard to replace - it is simply market forces. A baker does not subsidise his customer's bread if the price of flour increases....it is called inflation.
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Lynsey in north London |
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