How and when to set and increase the rent
Becoming a landlord and offering your space to prospective tenants can be a hugely rewarding and lucrative endeavour, even if it’s not always simple. Be sure the rent you’re charging is appropriate and fair in order to attract and retain the right tenants and keep your empire running smoothly.
Once you’ve brought your property and have it ready to go on the market, with your home inspection report software in place, an essential consideration is how much you should initially set your rent at. Too high and you’ll struggle to find tenants, too low and you’re likely to get tenants who don’t respect your property or don’t trust you.
Generally, we recommend setting your rent just below rent for similar properties in your area. Remember when you’re looking at market values those still available have not yet been taken, whereas more reasonable properties have already been snapped up!
Try setting your rent at around 2% lower than other properties in your area and you should be able to find plenty of prospective tenants so you can choose who’s right for you. Setting your rates at a little below market value will also improve and nurture relationships, and you might find minor repairs are more willingly done by the tenant – saving you time, effort, and money in putting these things right.
Using home inspection report software will help you keep track of any issues within the home, and coupled with low(ish) rent, you’ll be sure to find the right tenants.
By law, you can only increase rent in accordance with your tenancy agreement and must give sufficient notice of any planned increases, although we usually recommend giving more notice where possible to retain good tenants.
Again, it’s often best to go a little below market value or inflation in order to keep the best tenants and be sure to stick to any clauses included in your tenancy agreement. We also recommend giving thought to the timing of any rental increase. For example, the day after a bereavement or just before Christmas are not appropriate times to ask for more money. Giving adequate and appropriate notice of fair rental increases are vital to maintaining that excellent landlord-tenant relationship you’ve worked hard to nurture.