Can I increase the rent
As investors ourselves we understand the importance of rental returns on your investment and for this reason we are constantly monitoring the rental market. It is important for landlords to understand that they can’t just put up the rent when they “feel like it”. When negotiating a rent increase it is important to note that there are legislated notice periods that we must adhere to.
Here are a few things that we look at when carrying out a rent increase:
* The current rentals of similar properties
* The supply and demand of tenants and properties in your area
* Council tax increases and interest rate increases
* The location and features of the property such as parking etc
Of all these factors the supply and demand of tenants and properties is the biggest factor in the ability to increase rentals. If there are more rental properties available compared to tenants looking for them, then increasing rents will be difficult. However, if there is a shortage of rental properties, then rents will generally rise.
It is not always as easy as at first appears. When managing rental increases you must balance the emotions and reaction of the tenant with maximising your income. In some situations it may not be worth loosing a quality tenant for an extra £10.00 per week if there could be a possible vacancy period of a couple of weeks.