A part of my job is dealing with rental increases for properties. The rental amount can be increased on a yearly basis, but cannot be increased if the tenant is in a fixed term contract. After looking at the current market for one of the properties, I sent out a rental increase letter to the tenant stating that the rent will be increasing by 5% in the next six weeks. The letter also informs them to contact their bank to change their standing order in time for the increase date.
Unfortunately, the tenants responded informing me that they were not happy to pay the 5% increase, and that they would be more comfortable with a 2.5% increase in rent. They informed me that this was because they consider themselves to have been good tenants throughout their tenancy, however there had been a few issues with maintenance within the building. They asked me if I could put this forward to their Landlord, to see if a 2.5% increase would be something which they would consider.
After much discussion with the Landlord, the final decision was that the rent would be increased by 3%, but that the tenants would be reassured that the rent would not be increased again for another two years. I then put this forward to the tenants who were very happy with this compromise and agreed to the 3% increase in rent. By the Landlord compromising on the increase, they have kept the tenants happy, but also have an increase in rent for themselves.
If you have any further questions please don’t hesitate to call the team on +44 (0)1522 503 717.