If you are a landlord; it probably feels like an especially sensitive time to be asking about rent increases. You might have tenants who you have formed a good relationship with and have been in your property (or properties) for a long time. Naturally (especially in the current climate), it can feel uncomfortable asking them to pay more. You certainly don’t want to risk losing them (and potentially experience a rental void): but equally you are running a business. Therefore, a business approach is still needed to achieve a good ROI. Don’t forget; you are facing turbulent times and increased costs too.
Taking a business approach to rent increases
Discussing money can feel unpleasant. Many landlords therefore choose to avoid rent increases so as not to upset their tenants. Whilst this is understandable; keeping up with market rates is clearly something that plays a big part in maximising your ROI.
This is easier said than done though. It’s a bit of a balancing act. You obviously don’t want to price yourself out of the market. But you can’t be under-pricing yourself either.
It can be very difficult to get right if you are self-managing. Not only does it put you at risk of damaging the relationship with your tenants (or even worse, losing them); it also takes a lot of research.
There are multiple considerations to be factored in before deciding on your rates. You should be taking into consideration inflation, building insurance, interest increases, repairs, the average RPI rate for the year – and contrasting your property to similar properties in similar condition in your area. This means trawling through property portals (on top of everything else).
Getting the best ROI: Leave it to the professionals
Having a letting agent take care of rent increases on your behalf not only eliminates the need for you to have to do the research: it also means that you won’t have to worry about upsetting your tenants. Regular market-led reviews carried out by professionals will help to ensure you the best ROI. Rental voids can also be covered.
The benefits of using a letting agent
Landlords who are serious about property investment very rarely manage their own properties. Why? Because a) they understand that it is impossible to keep up with the abundance of ever-changing legislation b) they don’t have the time or the inclination c) they understand that their time is valuable and prefer to use it to achieve their goals – and d) they don’t want to be bothered by their tenants.
This type of landlord also understands the importance of using a quality agent – and that the benefits outweigh the costs.
Why choose Choices Estate Agency?
As one of the most trusted and well-established agencies in the UK, we provide first-class property management. You will benefit from:
- Extensive Advertising and marketing on all the major portals
- A wide network of our own high street branches
- Careful tenant selection
- Full professional references
- A dedicated team of property managers
- Cutting edge technology that keeps you and the tenants informed
- Constant focus on compliance
- Regular market led rent reviews
ARO: The Advanced Rent Option
There’s one big difference with us though. Unlike our competitors, we give you the option of taking your guaranteed full market rent, paid a year upfront, at no cost.
You can find out more here.
Interested? Calculate what you could get here.
Here to help you make the right choices
If you would like to benefit from regular market-led rent reviews (and save yourself the hassle of dealing with tenant drama), then let us do the hard work for you. Having been in the business since 1989, Choices have over thirty years of experience and have long since held our reputation as being one of the most trusted agencies in the UK. You can, therefore, be absolutely certain that your assets will be in the most capable hands.