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?

I’d be hanging on to good tenants. Don’t be greedy.

I call wind up on this one.

To me too. Really shouldn't be using the fact they've had a payrise to grab more money.

pure greed

I'd stay strictly hands-off. Let the EA do their job..

My landlord thankfully is one of those people who kept my rent the same for a second year in a row! A friend of mine who lives abroad and is renting her home here out was advised by their agency not to raise the rent.

Luckily there a still a few people around with sense. This isn't an economy to go hiking prices up, unless they want their flat to sit empty when the tenant finds cheaper accommodation and they have to re-advertise

I think some landlords can't see the bigger picture past the pound signs in their eyes. Glad to read some still have sense.

This thread is disgusting. Your attitude is foul.
But no doubt you'll increase his rent as long as your pockets are lined that's all that matters

You lost me at fucking property portfolio tbh.

Greedy.

You are just trying - and succeeding - in making people cross.

Are you bored sweetie?

I thought you are only allowed to increase rent by a certain percentage.

Personally as long as your mortgage and costs are covered with enough for any repairs I wouldn't be raising it any.

People are struggling enough this year so help out where and if you can. It sounds like you want to raise the rent due to their personal circumstances more than the fact you need the money.

If they are a good tenant, I'd not put the rent up more than I absolutely had to to cover legitimate costs like insurance etc.. If they decide to move because you up the rent too much, you'll have lost at least some rent and have to pay fees to find a new tenant unless you find one yourself, and may get a lousy one. And BTW, the idea that landlords have been taxed to the hilt is absolute nonsense.

You're morally bankrupt.

To be honest if you haven't put the rent up for a couple of years then yes - especially in this market - I would increase it. It's called business..just like any other business.
Landlords are not there to subsidise all the past governments who sold off all the housing stock. I didn't hear many complaining when longterm council tenants got massive discounts to buy their council houses and sold them off for a huge profit.
Yes - some landlords are greedy - the OP is not one of them.
And there are many greedy builders, plumbers, car mechanics, solicitors...

Keep the rent as is. But get the tenant to babysit on Thursday mornings. Then you’ve solved two problems - you’ve kept your rental income and you’ve got a Thursday babysitter.

Thanks all for your points.

On balance, even if the feeling on here is that I should put the rent up to market, I'd like to keep it just below market levels so that the tenant is happy and I am still making a decent return.

I'll speak to the EA this moning, asking them to put it up by £200 to £2,050 pcm from the renewal point on December 1st

We want to get the new lease agreed by Friday evening, so I will update you all once I hear from the tenant, through the EA.

Thanks again all.

I bet when you go to the pub they give you pints that are 40% head. Shameful to put the rent up by 200 per month, hope karma gets you.

Also how blind are you? The balance of comments here say don’t increase the rent. You’re just bragging and on a power trip.

£200 is half a month food budget. It's way too much.

I'm fairly certain you can't add that increase?

I hope he moves out and leaves it empty for months....

It makes you sick doesn't it? Also the fact that the OP knows the tenant won't have much choice but to pay it as no other properties in that area.

On balance, even if the feeling on here is that I should put the rent up to market*
*
Thats what you took from this thread?!!

Update: the EA has spoken with the tenant, explaining that the rent at £2,050 is still below market, and the good news is that he has agreed to recontract for another year at the new rate.

Winner all round! The tenant gets a tiny real terms rent increase, which is more than covered by his pay rise, and I get a more commercial rate for the property.

Thanks again all for your help