Should Yorkshire Landlords Raise the Rent in 2025? ðĪ
Getting the rent right is a must for all landlords. Here we'll look at how to assess if the time is right to raise the rent on your investment property ðĄ
So let's deal with the question: Should you raise your rent in 2025?
We believe all landlords should review the rent they charge every year and, if appropriate, increase it. (But there is a 'but' â see later.)
Here's why ððž
Your landlord costs go up every year. You need the rent to keep pace so you can maintain your property to the standard tenants expect. Most tenants assume the rent will rise from time to time. (Everything else goes up, so why wouldn't the rent?) Most tenants prefer a moderate annual rise rather than no increase for years and then a big hike out of the blue.
Reviewing and, if need be, raising the rent every year is fair to both sides.
There is another reason why reviewing the rent you charge is essential.
That is the Renters' Rights Bill, which is likely to become law this year.
Under this legislation landlords will only be able to raise the rent once a year up to market rates. Landlords will also have to give two months' notice of any increase.
So-called rental' bidding wars' will be banned. Tenants will not be able to offer to pay more rent than you are asking for.
So, the rent you charge must be at the right level before this law comes into force.
When raising the rent could lose you money.
If the rent is already at, or above, market levels, a rent rise may be inadvisable. Such a move could prompt your tenant to move on and you could struggle to find a new tenant willing to pay above-market rent.
How do you decide what the right rent is?
You could take a guess OR you could take advice from us here at RedRoots - we know the local markets inside out. We know what other landlords are achieving and what tenants are prepared to pay. We then use this expert market knowledge to help you decide the optimum rent for your property.
We will be pleased to offer expert advice on setting the correct rent for your rental property. Feel free to give us a call or message us today.
