So when is the best time to increase your rent? There is no doubt that this should be done when re-letting the property and not at the point of a renewal.
The relationship you have with your existing tenant may be great, but requesting a rental increase when the tenant has requested a renewal, in most cases, will not go in your favour. If it does and the tenant agrees to the increase, then fair play you must be special.
We believe that Landlords would benefit more by keeping tenants in the property longer, which would minimize your void periods. For example, let’s assume that you have tenants paying 500pcm who have been living in your property for the last 12 months at this level.
If the market average for your property has risen to 550pcm then we could say that you are potentially losing 50 per month. If you tell your tenants that you will be bringing the rent in line with what the current market suggests, that’s an increase of 10%, which ultimately could encourage the tenant to find a cheaper alternative.
So, if the tenant leaves the property and it is left vacant for one month, whilst you find and move in your new tenant, then you will have lost 500. It would take 12 months of letting the property at the new price of 550 to make up the lost rent in the void month.
A landlord would also be liable for the council tax during a void month, unless the property is unfurnished. In this case there would be no council tax liability for the first six months of the void.
Whilst making the most of an investment is a landlord’s top priority, sometimes it’s better to play the long game and wait for the re-let.
Typical investments that BTC sell are:- commercial investments, from small shop and upper parts to larger blue chip investments, residential investments (flats and houses with tenants), and commercial and residential developments (with or without planning). Also, within the investments department we have a corporate division, selling larger, corporate businesses, i.e. residential care homes, day nurseries, petrol stations, hotels etc. The investment database of buyers include:- first time investors, high net worth individuals, property companies and pension funds
Within the Lettings department BTC manage over 600 residential properties around North London and over 150 commercial properties Nationwide. Once BTC Lettings find suitable tenants for a property, then the management process will begin, to include:- inspecting the property every 3 months and sending the landlord a report, coordinating contractors to attend to maintenance issues tenants may have, collection of rent on time