How often should I put my rents up?
In a perfect world for my tenants rents would stay the same or come down every year. If I could do this and still earn a decent living then I would keep rents the same just to keep the tenants happy. Unfortunately in the world we live in the price of everything goes up. Petrol, food, cigarettes, clothes all go up with inflation thats a fact of life in the UK. In real affordabilty terms I therefore have to put my rents up to just to be making the same amount of money each year. It is only fair that I put my rents up in line with inflation each year. Most landlords/agents do this every 6 months.
How much of a rent increase is too much?
On an average monthly rent of £450 per month I will be puting the rent up by £10 per month. This is not much really, it works out to an increase of 33pence per day or £2.30 per week. Hopefully i wont be upsetting too many people by doing this.
Recent anecdotal news suggests that rents in the east midlands have been rising sharply in the last 12 months, maybe this is an effect of the interest rate rises over the last 2 years. I can’t really say the same thing about property prices though as they have been pretty stagnent for the last 12 months.
According to my letting agent in Chesterfield I must issue a section 13 notice to increase the rent. This is more commonly reffered to as a Section 13 form 4b. I love legal jargon!
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£10 per month is not too much. If you break this cost down to days, you’re tenant probably won’t mind as it is a very small increase.
yeah compared with everything else that goes up in price, this is hardly anything.
My rent has gone up 3 times in the last 2 years man! Each time it went up by about £15. Its now £665pcm for a 2 bed flat. Most other flats in the area are at the same price and I worked out it would cost me a lot more to move to a new flat anyway.
This is the way how everything works. Take gas prices for instance. Gas is really low per barrel now, but the price at the pump hasn’t changed much. Overall, People just get used to the pain, and sellers/landlords realize this.
Regards,
Shane,
Panama real estate.