Rent hasn’t increased at all in five years

[Tryingtogetbacktomysize10s]

Probably a silly question but should it?

Two properties five years let with no increase we have just had blown windows replaced, so have put it up£50 per month, if we had to relet would be asking far more, but we have nice tenants

Most letting agents are just about the profit margins - and so they won't be actively 'managing' but just hoping things tick along with no work on their part, and when they are forced to do some work they may look and see if there's an opportunity to extract a bit more money for themselves. So I am not surprised they aren't proactively looking at the properties they manage.
As with most business decisions there are risks - risk that your tenant has already been thinking about a move, and this will just tip her into the move, or she is stuck and starts to resent so starts bringing up all the niggly issues that so far she has lived with but could start to cause you hassle because the agent will pass them onto you, versus she can see its still a good deal and she just quietly continues living there and pays the extra. Even just one month of it being empty - it could take a year of a new tenant at the higher rate to pay back the missing months rent. If you don't care but will sell - do you have enough cash flow to cover the significant time its taking for properties to sell and actual cash to be in your pocket. (I've been looking locally and properties are bouncing on and off the market and the reasons being given is issues with mortgages - so even with agreement in principle in place people are finding survey valuations, bonuses not being allowed in annual salary calculations etc. all causing delays or denials for actual mortgages)
Its an uncertain time - if this is your only source of income I would be taking quite a risk averse approach. We relet our flat in November - in a supposedly buoyant part of Bristol - we did not get many enquiries and only had 2 possible renters to choose from. In previous years we've had to hold open days that many people were interested. If you think the market in your area is buoyant on the basis of what the agent/local news is telling you then take it with a pinch of salt - there are vested interests and a lot of pr going on to make sure people feel that everything is ok and just the same as it always was. At the sharp end of self employment I don't quite see it that way...

We only tend to increase rents between tenants so wouldn't increase for an existing tenant. We don't use an agent and I like to think we're good landlords. That said, it is a business and you should feel able to charge a fair rent for a well maintained property, should you need to.

I would speak to the tenant and warn that you are going to have to raise the rent and will do so gradually.

When my Mum was in a care home I had to manage the rental of her property. You have to balance up good tenants and try to keep them but not to the extent that you are charging a rate completely out of line with others in the area. Unless you really don't need the money.

And if you are having an agent manage it they should generally suggest this.

Are your tenants on a rolling contract or a fixed term tenancy?

I've been a landlord since 2007 and have increased rents slightly over the years, never more than 5% at a time, never 2 years in a row, always with at least 3 months notice and always still under market value.

Most of my tenants are long term and had no issue with this.

I always make sure gas checks are done, boilers/bathrooms/kitchens updated when necessary etc.

Costs for maintenance, repairs and replacements are much higher than they used to be, same with landlord insurance plus the extra EPC and Electrical safety requirements now in place.

I think I am fair, but also it is a business/our pension, not a charity.

OP, I would suggest the agent approaches the tenant with a £30 month increase. They have done well for it to be the first one in 5 years!

Fully depends if you want to increase it. I’m assuming you have had the same tenants if the rent has not increased? An old landlord wanted to increase the rent on a property I lived in once. The house was a shared house but had been within the same group of girl friends for about 5-6 years, different people moving in and out, some coming back. I’d been there 2 years at the time. We all said no we would have to move even though we knew we could never get such a prime location for the same price. The landlord cared about keeping us in the house as we looked after it. He was also our next door neighbour so knew exactly what we were all like and obviously never had any trouble. I don’t think he ever did one flat inspection. The rent slightly increased the year after I moved out but literally by £10/p/m and remained with in the wider circle of friends for another 5 years.

Letting agents do bigger all how much are they charging you cut them out for starters

Also agree with other posters - manage it yourself, that will get you probably extra £50 a month

I live in a ha house and we get a yearly rent increase , granted its not much but £4 a week some years
I think its great if you can keep rent unchanged if landlord and have good tenants
But putting say £25 a month on after 5 years wouldn't be harsh
Increasing from £500 to £600 would be and why you might find another tenant you could have an empty place for a month so no rent or get a bad tenant
Good tenants are also worth their weight in gold , s

@sipsmith1 yes people will take issues with a 13% increase as you then leave people in poverty as not many get 13% wage increases and especially this year
I do hope rents get capped in areas soon as too many make a profit from others misery , there are some great landlords on here who are making some money and covering costs , but too many out to make a quick buck and pricing the rest of us out the market and its really not fair , when rent is more than a mortgage for the same property

Also if you sell as long as you give notice then the tenant can find elsewhere but obviously again you could have a void period, I don't think £30 a month after 5 years is too much

Some letting agents advise an increase others will wait for you to say so totally depends , they will prob charge you for new contract though , so best to ring them.
When my previous landlord sold we had to wait for a ha property so had to stay beyond out notice ( we had no choice) so not always do people move out straight away.
But end of day its your property so up to you

i think I am fair, but also it is a business/our pension, not a charity

Yes, this. It is a bit irritating when people act as if I am purely motivated by greed when it’s for my future and my child’s. Thank you.

I'd guess that a reliable long term tenant who is paying on time & taking care of the property is worth FAR FAR more than the small increase in rent you might get. I wouldn't risk annoying them & leave things a they are, & if the tenant leaves, increase the rent price at that point when remarketing.

How much are you paying the agent? Because once you have a stable tenant, they are reaping in money for bugger all.

You should have a copy of the tenancy which should tell you how much and how often you can raise the rent, eg max 10% once a year.

Since interest rates plummeted I've not increased rent during a tenancy. Keeping reliable tenants is worth a month's rent!

I haven't increased the rent on one house in eight years. But one if the tenants is unwell and they do maintain it beautifully.
Another still isn't paying full rent from the first lockdown, she's been there three years so pointless telling her I'm increasing.
My other flat is in London no outside space and I'm happy that the tenants have just renewed- I think if anything the value has gone down. My last place, if I wasn't selling it, I'd definitely increase rent by max allowed as there is nothing around and it's a unique and gorgeous property. I'm selling to an investor and I know they will be upping the rent by at least 10% (new tenant).
So it all depends on demand, the tenant, and circumstances.

I’m a landlord

Have you had the same tenants for the whole period the rent has remained unchanged? If so I can kind of understand it if you’ve got good tenants. But if they have repeatedly marketed to different tenants over that period with no analysis of prevailing market rents (assuming they have risen, they may not have) then I’d be questioning what you are paying them for.

However at least a couple of months before each renewal date the letting agent should be contacting you to ask what you want to do on renewal and advise on current market rates for that type of property. It’s then up to you to say either yes please charge the new rate or no I don’t want to scare these great tenants away, let’s keep it the same.

Our local housing association 3% increase annually is the norm

Interesting, thanks. I do feel a small increase is reasonable.

@worriedatthemoment that increase is literally just the rate of inflation. Minimum wage has increased 23.75% during this time same time period.

Lots of people are suggesting their housing associations increase 3% each year, the RPI method works out at cheaper than a 3% increase each year. People think landlords make loads of money but in most cases it simply isn’t true.

@jackstini

Also agree with other posters - manage it yourself, that will get you probably extra £50 a month

I used to manage mine and quite honestly, it’s a ballache. Unless you know what you’re doing and have access to various trades which you can get at short notice. You are far far better to have a good agent managing it for you.

The first two agents I used were crap and didn’t offer either me or my tenant a good service. In the end, I found a good one by asking for recommendations on local social media. They managed it for me and did a genuinely good job.

We only increase when tenants move out we want tenants to stay as long as possible so we don't put up the rent.