As a landlord, you want to make sure you're charging your tenants a fair rent. But with living costs rising, it can be tough to know how much to charge without pricing your tenants out of their homes.
That's where we come in, we are well-versed in evaluating the conditions and circumstances of your properties and tenants to ensure that you are receiving a fair rent for your property, whilst ensuring your tenants pay a fair rent for their home, and they stick around.
Here are our key steps to ensuring a fair and effective rent increase:
Step 1: Stay Informed - Rent Review Notification. We will keep you informed about your next rent review. We'll make sure you know when it's due, so you're prepared for any potential changes and considerations to make.
Step 2: Your Choice - Rent Increase Decision. We'll discuss the possibility of a rent increase (where appropriate) with you and consider your preferences and the direction you would like to go. Whilst you don't always need to implement a rent increase, it is advised that you do, to keep up with market rental value.
Step 3: Thoughtful Planning - Incremental Adjustments. To prevent sudden and overwhelming changes, we take a considerate approach. Instead of a significant jump from your current rent of, let's say £400 to it's market rental value of £700, we propose a gradual adjustment plan. This method ensures affordability and stability for you, avoiding any potential financial strain on your tenants resulting in their leaving the property and void periods for you.
Step 4: Recommendations and Market Value. We conduct thorough research and analysis to determine the recommended rent increase. Taking into account the market rental value, we provide you with clear and justified suggestions. This way, you'll have a solid understanding of the market trends and how your rent aligns with them.
Step 5: Open Discussion - Your Response. Your voice matters in this process. Once we present our recommendations and suggested market rental value, you have the opportunity to respond. You can either agree, propose negotiations, or choose to decline the proposed increase. We value your input and aim to reach a fair and agreeable decision.
Step 6: Confirming the Decision - Section 13 Notice. Once we have agreed on the rent increase with you, we'll proceed by contacting the tenant and confirming the decision. We'll serve a Section 13 notice, as required by law, ensuring that all formalities are fulfilled with proper documentation.
Step 7: Timely Notice - One Month's Notice Period. We understand the importance of providing sufficient time for adjustments. When serving a Section 13 notice, we will give a one-month notice period. This allows for a smooth transition and ensures you have ample time to plan for the adjustment.
Meeting Market Rental Value. Regular and incremental rent increases are vital for maintaining a healthy rental business. Failing to meet the market rental value may lead to difficulties in attracting potential investors, as the potential rental income may fall significantly below market value. By staying on par with the market, you can cover the costs of running your rental business effectively.
Increasing rents is an essential aspect of being a landlord, ensuring the viability of your investment. We understand the significance of balance and fairness throughout this process, striving to make it a transparent and collaborative experience. Rest assured, our aim is to protect both your interests and the stability of your tenants' homes.
Here's how we work with you to ensure we affect a fair and reasonable rent increase:
- Research. Before raising your rent, our team conduct meticulous research to check the current market rental value of your property and assess how that stacks up against your current rental income.
- Circumstances. When you're setting your rent, it's important to consider your tenant's current situation. A rent increase can void existing notices*. If they're already in arrears, making late payments, or on a payment plan, a rent increase could hasten their exit from the property, resulting in a void period.
- Reasonable. When you're raising your rent, try to be reasonable. A 10% increase is generally considered to be fair, but you may want to consider a smaller increase if your tenant is on a low income.
- Time. If you're planning to raise your rent, your tenant will need one month's notice. Also consider that you might not be able to immediately hit the market rental value, prepare for a rent increase plan to get you there over time.
- Preparation. If your tenant disagrees with your proposed rent increase, be prepared to consider serving a Section 21 notice. You may be able to reach an agreement that works for both of you.
*Please note: If your tenant is currently on a Section 8 or Section 21 notice, or on a payment plan to cover rent arrears, serving a Section 13 rent increase notice on the tenant will invalidate any existing notices. For example, if you are in the process of evicting a tenant through a Section 21 notice, and then serve a Section 13, their existing notice will be invalidated. We will never advise a rent increase on a tenant already under a notice, or in rent arrears.
With the help of our expert Compliance Team, you can increase your rent fairly, compliantly and without pricing your tenants out of their homes.
Want to keep your tenant happy, and more likely to agree with the rent increase? Try these tips:
- Keep your property in good condition: Tenants are more likely to be willing to pay a higher rent for a well-maintained property.
- Professional Property Management: Employing professional property management services can help alleviate tenant concerns and streamline the rent increase process. A reliable management team can handle communication, address tenant queries, and ensure a fair and smooth transition during the rent adjustment process.
- Be responsive to tenant requests: If your tenants raise any concerns or requests to us, we will make you aware, and be sure to address them promptly. This will show them that you're a good landlord and that you care about their well-being.
So there you have it! By enlisting the services of a professional letting agent, you can offload the burdensome tasks and complexities of property management, allowing you to focus on other aspects of your life. From tenant screening to rent collection, maintenance coordination to legal compliance, a letting agent takes care of it all, ensuring a hassle-free experience for you.
With our expertise, industry knowledge, and extensive network, letting agents are equipped to maximise your rental income and protect your investment. Don't miss out on the opportunity to simplify your landlord journey and achieve greater peace of mind. Contact us today and let us take the reins, so you can enjoy the benefits of a hands-off approach to property management.
Give us a call at 01482 562 562 to speak to our team 📞