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Most landlords were lenient during pandemic but plan to raise rent


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According to research, 65% of landlords were 'flexible' with their tenants when it came to rent during the pandemic.

I'm pleasantly surprised by this results - if you paid any attention to social media or headlines, you could be forgiven for thinking landlords were incredibly unsympathetic to their tenants' employment and financial situations during 2020.

However, this research also found that 55% of those surveyed plan to raise rents in the next 12 months.

https://www.propertyreporter.co.uk/landlords/majority-of-landlords-flexible-during-pandemic-but-will-raise-rents-in-next-12-months.html

Do you plan on raising your rental prices in the next year? And were you lenient with your tenants during the pandemic?

Mark Rocks
Community Builder and Content Writer

www.propertyhub.net

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Considering inflation is supposed to be 4% by the end of the year, I'd be amazed if only 55% raise rents over the next year. Certainly anyone including bills in the rent is going to need to increase the rent to cover the gas and electricity prices.

I've not raised any of the rents over the last 18 months, although some were new tenants in that period, and have been flexible at times, especially early on before the support packages were announced.

Biggest concern would be reductions to LHA rates, as it was supposed to be a Covid increase, although they hadn't gone up in years. If they were to drop, it would apply deflationary pressure to many properties.

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My tenancy agreements have indexing linked to tenant circumstances. Retirees are linked to state pension index, working tenants are linked to RPI. Thankfully my working tenants are either in essential retail, able to hybrid work or one is a truck driver and in great demand. Thankfully none of the agreements have fuel cost included, that would be a nightmare at the moment. For those landlords, I guess it would be best to get onto a capped tariff and stay there until the market settles down.

 

Bob

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Looking at how the market has been and is projected to go, i'm trying to think about what I get written into some tenancies that I have going through. Is it unreasonable to review rent at the end of the first fixed period (6 months) or shall I just stipulate that rent reviews with take place every 12 months? I dont want to get into big rent increases once a year, however dont want it to seem to aggressive doing 6 months although that would make it little and often?!?!

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5 hours ago, sam_f3 said:

Hi @ayns see this thread here 

 

cheers thats appreciated. I think ill get an annual rent review written into the contract , however doesn't mean the rent needs to change, but would be good to have the option there. However some good points made around retention and the same tenant staying for 3 years at one rate is still much better then 2 sets of tenants paying an extra 5%!!

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  • 2 weeks later...

Yes i've been flexible, and found tenants are trying to get back up to zero arrears. It has been a difficult period for everyone, and i think its a better business decision to allow flexibility. if there is no chance for them to ever pay/get back to zero, then they could easily just give up and then cause even more headaches. 

I really dont think it is the time to be raising rents either. This is a people business, and thinking otherwise shows naivity. 

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