Should I increase the rent?

[Everywheretwice]

I own a property that I rent to a lovely family, a couple and their primary age son. They both work full time. The wife's father also lives with them, he works full time too.

They've been in the property for 6 years, they have always paid £800pcm, on time, no issues, and I've never raised the rent. Market value now would be at least £1100.

I'm torn between raising the rent slightly to help cover increasing costs associated with the property, or leaving it as it is because I like them.

Increase it to market rate. If HMRC audit you for any reason you'll have a job to do to prove this isn't some sort of money laundering / tax evasion scheme. This happened to someone I know.

Some very valid points made too about "trapping" tenants if they ever want to move and find other rents are much higher

We see that scenario on here all the time, and rarely with any appreciation for how the current LLs have protected folk from increases - just complaints about what they'll have to pay in future

Happily nobody's suggesting OP makes huge increases, just a small yearly one to bring the rent more in line with others in the area

100% this. ^

Yes increase the rent just not straight to current market value

You say they all work full time so for context let's assume it's basic minimum wage

11.44ph for 37.5hr per week x 52= 22,308 if min wage I'm assuming no student loan (obviously just an assumption)

So that's approx 1,600 pcm take home per adult take off 100 for pension that's 4.5k monthly income for household

4.5k! Whilst yes I assume their will be some childcare fees you said they were primary age so not like nursery costs.

Even if you took the GP wage out (even though surely he would be contributing something) that's 3k per month

So yes I would put it up. If you want to keep them I would go with under 1k

As you know we have not increased the rent for 6 years and we value you as tenants we have been informed the current market rate is 1.1k pcm however we understand this would be a large increase to your family and as such we have decided to make a rental increase to 900-950 pcm

Obviously assuming you are a landlord that is keeping property up to date and safe.

The real joke is that if someone posted that they had a household net income of £4.5k+ and posted to say they were struggling, they’d get lots of ‘oh my heart bleeds’ and ‘tiny violin’ type comments.

It just shows the hatred for landlords is strong in any circumstances. 🙄

I've just plugged minimum wage into a benefits calculator and the couple with kids would qualify for £394 per month of Universal Credit.

That would bring the household NET income up to £5,023.

Raise the rent to one that covers costs and gives a buffer to you to build a pot for major repairs like the boiler.

Child benefit on top as well?

My landlady is a fair and reasonable person, and I've been living here for several years. The rent is always paid on time and I look after the house as though it is my own. Her mortgage went up last year and my rent had to help her cover it, so my rent increased by 12%. It made me gasp a bit, but what choice do I have? This is my home. Small increases over time are better than a big hit all in one go OP. Better for your tenants and for you.

Yes.

Child benefit is another £184 per month based upon two kids.

You are not their friends, you are their landlord.

It seems like they might be able to afford a holiday after all, despite certain posters protesting on their behalf. 😉

The contempt for landlords could be felt through my screen.

No its not, its £4968 and that's before tax

I dont think the discussion is whether the tenants can afford it, its whether its the right thing to do.

Its SO dangerous and fucking stupid to now start guessing what their income is so you can decide how much of it you reckon you are entitled to.

YANBU.

I think you need to work on your maths.

Minimum wage is £11.44 per hour.

35 hours per week = £400.40

52 weeks per year = £20,820.80

Divide by 12 to get £1,735 per month.

Multiply by 3 adults to get £5,205.20 gross household income per month.

It’s certainly not wrong for OP to increase rent after 6 years of no increases. It’s also not wrong for them to pay market rate.

You said on your last post you can afford to keep the rent as is so I don’t understand why you’re asking the question here? Is anyone else confused?

Why is anyone presuming they’re on minimum wage?

Maybe because it helps with the narrative of poor, crushed, underprivileged tenants and foul, greedy bastard landlords?

Never mind that each of them may be neither; as so often on SM the storyline has to be maintained, even if it means inventing things to suit

If you were a decent human being OP you would let them off paying rent entirely for a few months so they could afford a REALLY nice holiday.
Maybe help them pack and offer to water their plants/look after pets while they are away too?

Sounds a bit selfish to me, Hoppinggreen; surely the least OP could do would be to pay for the actual holiday - and maybe give them the house as well?

I think an increase is really reasonable bit not necessarily to market rates.

I think the whole implied agreement with long-term renters is they pay a little below market rents because it benefits both parties.

The renter has reliable tenants and avoids any void/advertising costs/refurbishment costs. And avoids the risk of new tenants who may be undesirable, dirty, destructive, complainers, not paying rent etc.

And the tenant gets slightly below market rates as a reflection of them being good, reliable tenants who care for the property.

To be honest anything less and OP just isn’t ‘decent’ and is an ‘asshole’. 🤣🤣🤣