AIBU to put tenants rent up?

[HarpoBoy]

As part of my Buy to Let portfolio, I have a flat in Clapham that I rent out for £1,850 pcm. Fixed term interest only mortgage of approx £600 until the end of 2026.

Long standing and good tenants, but I know the main tenant works for a major accounting firm who has just given their staff a 9% pay rise. He is quite senior, so can afford the rent.

The rent is up for renewal at the year end. I usually put it up £50 or so.

EA reckons the local market has gone bananas and I should put it up at least £250 this year.

AIBU to put it up by £150 to take it to £2k a month? Should I put it up more or less?

You should put it up to whatever the market rate is for the property, or perhaps just under if the tenants are good tenants.

Sounds greedy to me

How many bedrooms?

What you know or think the tenant earns should not be a factor.

The local market may be "bananas" now - if it crashes tomorrow will you be putting the rent back down or reducing it even further? If your longstanding good tenant decides you are taking the mickey, how long until they leave and you can't replace them with someone as reliable? Be careful what you wish for...

I’d just get this thread deleted right now OP.

So if they worked for a small company and got a 1% raise you wouldn't increase their rent? 🤔

You sound awfully greedy OP. None of your business what your tenant earns and certainly not your business to decide if he can afford the raise in rent

Why not put it up to £3k or £4k or £5k. Sky's the limit

Two beds / two baths with allocated parking and use of resident's gym.

You interested??

😁

You’re being greedy.
You should be trying to keep your good tenants! I have had tenants that were complete nightmares and ended up selling the property as a result. Your tenants may look elsewhere if they think you’re being greeedy.

It’s a good price for Clapham. I would up it

If he leaves you could get a rubbish tenant that doesn't pay and damages your property.

Certainly - that's my own view. I've not put the rent up much over the past couple of years.

This could be a good chance to bring it to market levels.

So £24k rent per year. Pretty disgusting, no?

He's very unlikely to leave. There is nothing in that price range locally that isnt ex-council.

@DaisyDando no one is making them live in Clapham. There are 100’s of other areas. They could even leave London. It’s an active choice they are making

Greedy

I think you shouldn’t raise it at all.
that 9% increase factors in raised energy and food prices now you want to up his rent that you are essentially making over £1000 profit each month.
he may well leave and with a rent price like that are you guaranteed to find new tenants very quickly?

Why does them getting a raise have anything to do with it? You don't know what they spend their money on or may need that raise for. People can take properties that are lesser than they afford for all sorts of reasons

If you don't need the money and they are good tenants then leave it. It's just pure greed

You know that the cost of living has gone up by at least 9% right? So his 9% pay rise (how do you even know that?!) is only going to keep him level, he's not rolling in cash. You don't NEED to increase the rent by 9%, you're being greedy. Try viewing tenants as a long term investment themselves and stop gouging them for every penny. Letting agents don't care if you change tenant every 6 months and that's what could happen if you set rent at 'market rates' - keeping a good tenant long term is worth more than a few extra £100s a year that can easily be offset by void months and bad tenants who cost you a lot more.

You need to put the rent up. Because your mortgage is interest only and you need to think about the cost of 'putting away' funds to pay the capital at the end of the mortgage period. Your mortgage is only that low because you are not repaying the capital. Hence your 'profit' is not accurate. You absolutely need to come up to market rate AT LEAST.

Then why are you posting on here?
What are you hoping for, genuinely?

That's really mean... they might need the money, stick to £50.... £250 is a joke... with inflation ouch

We live in a free market. We have taxed Landlords to the hilt since 2015 - little wonder so many responsible landlords are now increasing the rent.