I am an accidental landlord.....stuck with a negative equity property.....and big mortgage.....I have been generous to the tenant and charged a very low rent......It emerged a few months ago that I was getting 400 a month less than I could have. This was brought to my attention by the letting agency who look after the place
.....the tenant had been 2 years with the same low rent.....I was being very fair.....Then today all went wrong.....I feel I have been royally shafted and punished for treating people fairly
I'm an accidental landlord too and like Redcat charge well below the market rate for my property.
What a bizarre attitude.
Firstly, you seem to be totally ignoring the two year embargo on carrying out rent reviews. Market rents have risen by around 20% nationally over the last 24 months.
For the last few years I have been generous to the tenant and charged a very low rent.
It emerged a few months ago that I was getting 400 a month less than I could have. This was brought to my attention by the letting agency who look after the place
Secondly, it is not at all uncommon for landlords to charge good tenants a rent that is below the market rate for perfectly sound economic reasons. Call it a "loyalty bonus" if you like - there is a cost associated with replacing tenants.
Of course it's relevant in these circumstances! The OP specifically told us that the rent hadn't been reviewed in two years.Thats is a fair point in general, but it does not appear to be relevant to the OPs particular situation.
It is a rare businessman that does not provide some level of discount for long-term, reliable customers.This is I understand not uncommon, though what advantage there is to a landlord in having a "loyal" tenant I do not understand. Exactly what type of "loyalty" does €400 a month buy.
I did not increase the rent because the tenants were excellent, because it costs money to switch tenants, because they were a young couple with a young child living paycheck to paycheck, and I'd only get 48% of any increase in any event, money which wasn't going to change my life.
I reflected on the risk/reward/decency aspects and decided not to charge them as much as possible.
Have you an issue with that?
I am an accidental landlord.....stuck with a negative equity property.....and big mortgage.....I have been generous to the tenant and charged a very low rent
.....the tenant had been 2 years with the same low rent.....I was being very fair.....Then today all went wrong.....I feel I have been royally shafted and punished for treating people fairly
It emerged a few months ago that I was getting 400 a month less than I could have. This was brought to my attention by the letting agency who look after the place
You called the OP "clueless" and suggested that charging a tenant anything less than the full market rate was "antisocial"!..not exactly calling anybody names.
An issue with it? Well its your property and your income, so you can do as you wish with it. I am just pointing out that it distorts the market. €400 a month as in the OPs case might not change your life, but it would pay my kids college fees and feed him for the college year.
Maybe I am just jealous, I certainly wish that I could afford to give money away like that.
And at least you are not coming here looking for sympathy.
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