So, everyone is in the frame when it comes to rent increases – but when it comes to how much I’ll raise it by, that’s when things get personal. I value good tenants and will always price below market rent to ensure they remain with me – I’ll encourage them to check the market so they can see this for themselves.
No decent landlord wants their good tenants skipping off to somebody else!
As for how I approach this, I believe it’s where I do things a bit differently. I will always “suggest” the new rent – I don’t demand it. I see rent increases as a two-way negotiation and I prefer open dialogue.
I know sometimes my suggested rent increase will be at a challenging time and I prefer a tenant to be able to feel they can push back and say so. This doesn’t make me soft, it makes me mindful of their life and circumstances.
For me, I weigh up the cost of keeping a good tenant versus the risk of taking on a new tenant and the potential issues that may arise.
If a tenant has pushed back on a rental increase (and has a valid reason for doing so – maybe they’re about to go on maternity leave, or lost their job), I’ll decide on a case-by-case basis how much time to allow before the situation gets reviewed again. I’ll be open about this with them.
Only yesterday, I suggested a rent increase of 6pc (£55 per month) for a good tenant, and they emailed me saying, “Thank you so much”. It may sound like a big increase, but given the market and the service I offer, my tenant knows they’re continuing to get a good deal and I could be charging them far more.
The truth is, I have a good deal too – by offering such competitive rent, I get to keep my good tenants for longer.
This all goes to prove that a free market really doesn’t need rent controls or government interference. Good landlords and tenants are perfectly capable of creating their own pricing – that both are happy with.
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