Prospective landlord. How often for a rent review (12mo, 3, 5 or 7years)?

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noremac

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Hi

We are currently in the process of renting out a property on behalf of my Dad who is unwell. I am wondering what the recommended time frame for a rent review is. My Dad says a year but the prospective tenant wants to rent long term (5 to 7 years) and wants a longer period? Could anyone tell me whats the norm?

Thanks
 
Re: How often for a rent review

I have no experience in setting up rental agreements but in this case maybe a mid-term review would be appropriate?

A tenant that wants to rent for 5 to 7 years is a very valuable thing these days. It is unlikely that there will be a general increase in rent in the next few years so I don't think there is much to gain for upsetting your prospective tenant by demanding annual reviews.

If you have a review after 3 years hopefully rents will be picking up again and you will be in a position to increase your income.

This would seem a fair agreement - you are guaranteed the same renatl income for the next three years and after that you have an opportunity to increase income in line with inflation.
 
Re: How often for a rent review

I think the norm is 1 year but it should say on the lease agreement. Can you put on the lease that rent is subject to review every year. Does not necessarily mean that it will change. Or else every 2 years. If you are happy that that the new tenants will cover costs of house then perhaps go with 2 year review.

I am in my rented property 4 years and thankfully have never had a rent review. Touch Wood (unless they want to reduce it of course)!
 
Thanks for your replies guys. I did answer you on Friday evening but don't know where it vanished too!

It is a residential property murphaph. I am inclined to agree with QED about getting a good long term tenant. We have just invested a lot of money refurbishing the property so I would obviously prefer to have a good long term tenant. He was going to read the tenancy agreement over the weekend and come back to us today, so we'll see talk to him then.

Thanks again.
 
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