Tenant refusing a rent increase

[Crazy council]

Re: Tenant refusing a rent increase

hi Mr $q

Per said he's renting directly. If his landlord found a new tenant willing to pay Ł1,200 through letting agents, a typical fee would be 10%. Not to mention redecoration, vetting tenants etc. There would be a void period in any case.

This is defiantly something you take into account as a agent/ll before you increase rent. in most areas of the country, you account for 2 months void every 2 years ( tenant changes ETC ), london and london rail connected is different.

You have lists of people activly looking in those areas, and they will tell you before hand what rent they will pay...

Talking to letting agents is often waste of time. They want your business and are likely to inflate figures

As a LL ( property investor ), you would not maintain much faith in a property agent, if there rent/income projections were wrong...... you would simply loose the business from the LL. Also, when a LL comes to yuo as an agent, telling you to increase the rent, against what your advising, its usualy best to loose that LL,

Also, as an agent, you would be stupid to turn over tenancys for any fees you can charge in the change, because its very hard for a LL to move his business away from your agency whilst the tenant is in there, but easy for them to do when the tenant leaves. So as an agent, you dont really want teants moving in the first 2 years, longer the better. And a lot of the time, the fees charged for a new tenancy are a reasonable breakdown of costs for the paperwork.

writing and completing the tenancy contract ( 1-3 hours depending on whats included )
checking refferences and prior addresses ( 1-3 hours )
Credit checks ( were needed ) ( i hour )
Signing contrats/inventory ( 1-3 hours )

Snag lists sorting ( overcoming any hurdles on the above checks ) ( 1-3 hours )

These a lot of paperwork to complete the above properly,

[Berniethebolt]

Re: Tenant refusing a rent increase

From what I know of the London market the rents vary enormously from the fashionable expensive areas to the , well lets call them up and coming. Ł1200 is an average over London .

The Ł1200 also falls relatively close to the LHA in some areas of say North London although it does depend on if you are classed as inner or outer London.

I also think that other parts of the country have huge opportunities depending on what appeals , the lakes for example . I have little time for people who think that everyone north of Watford wear clogs and take their whippets out along the cobbled streets on bits of string. We even have some nice shops in the north

[Mr $quandaŁot]

Re: Tenant refusing a rent increase

I had my flat valued in 2001 for both sales and letting purposes.

Both figures were inflated but I'd say the sales valuation more so.

[Mr $quandaŁot]

Re: Tenant refusing a rent increase

Furthermore, this shows how broken the UK housing market is at the moment. Many believe shortage of properties is the reason. I don't.

Well, it's a contributing factor but I strongly believe the biggest reason is all time low interest rates.

Pathetically low interest rates have pushed sales prices through the roof. Those already on the ladder have benefited. Older generations who had paid their mortgages ages ago have suddenly become millionnaires, at least on paper.

House prices are simply too high in relation to salaries. People can't buy so they are forced to rent and, hey ho, landlords are over the moon.

No-one seems to have a clue how to fix this.

I have some ideas:

1. Tax empty properties @ 10 x the usual council tax rate. This should encourage owners to let it out if they don't wish to live there, increasing rental stock.

I live in a block of 11 flats, two are currently empty and, yes, that's in London. One of the empty flats is unoccupied for natural reasons, the other one used by the owners when they feel like it, being unoccupied most of the time.

2. Start increasing interest rates. This is crucial to stop the current bubble getting even bigger.

3. Rent control? Sounds good but unfortunately there is plenty of evidence to suggest that it doesn't work. In fact, it can be counter-productive.

4. Build more. This is what most experts see as the main solution. It won't hurt. Part of the problem in the UK is that there are relatively few high rise blocks compared to the Continent. If you have little land, this an obvious solution.

[Kati]

Re: Tenant refusing a rent increase

There's a really ugly looking highrise building that was purpose-built for the then DHSS. Over half of it (22,117sq ft over 5 floors) is available to rent as office space ... and they're only asking Ł5.50 per sq ft a year in rent. Close to the bus station, on site parking, train station under 10mins walk away.

Guess what?

No-one wants it :sad:

[Mr $quandaŁot]

Re: Tenant refusing a rent increase

Got an update.

Per hasn't heard back from his landlord. He's been expecting to get a section 21 notice but it hasn't arrived, neither has the landlord texted him since he said nine days ago that he was going to think what to do.

Looks like Per won't have to move out until January now unless he chooses to. The landlord has now failed to serve the section 21 notice by his rent due date.

[Berniethebolt]

Re: Tenant refusing a rent increase

Has the LL served the notice of rent increase? or was he just thinking about it

If he has served notice of a rent increase and you do not pay it, you will become in arrears which will build up

There is no need to wait for the S21 to move, just give notice

[Mr $quandaŁot]

Re: Tenant refusing a rent increase

Has the LL served the notice of rent increase? or was he just thinking about it

If he has served notice of a rent increase and you do not pay it, you will become in arrears which will build up

There is no need to wait for the S21 to move, just give notice

Per said his landlord hasn't served any official notices. They were communicating by email and text.

[Mr $quandaŁot]

Re: Tenant refusing a rent increase

I think Per wants to stay until January/February as moving into a new property just before Christmas would be harder in Norway than here. I've advised him to consider other parts of the UK too.

[FlamingParrot]

Re: Tenant refusing a rent increase

I think Per wants to stay until January/February as moving into a new property just before Christmas would be harder in Norway than here. I've advised him to consider other parts of the UK too.

...not to mention mid-winter conditions up there!
Hardly the time or the place to be between homes.