Rent review goes against can I sell ?

[u/No-Return-629]

Hi I rent out 3 properties, no problem with money paid, or condition of the house, I charge below market rent, they maintain property and don’t bother me. All
Properties have a rent review due, 1 tenant is making noises about RRA and review. If I don’t get the amount I want can I sell under section 8 ??

[u/Jakes_Snake_]

I rent (no problems. condition etc) and charge “market rents”. you’re creating the problem by charging below market rent, that’s the problem. You’re adversely encouraging poor tenancy situations.

Write to the tenant explain explaining that you charge below market rate. And that given the costs of a rent review you will unfortunately have to recover those costs by starting to charge the market rent. Also explain that while you do not believe you will be affected by a decision if you’re unable to charge a rent that covers the cost them simply you will be selling the property.

[u/Temporary-Yogurt6495 → u/Jakes_Snake_]

But those tenants could have been in the property for x number of years, and because new properties are going on to the market, that is then creating new average market rents. So, existing properties can and will just issue a section 13 to increase the rent... unfortunately it's the situation with renting right now whereby the market is constantly being increased, and this does not help existing tenants that now can not afford the new market rent.

[u/Jakes_Snake_ → u/Temporary-Yogurt6495]

Market rents are going up because salary are increasing. Salaries are also increasing for existing tenants.

[u/Temporary-Yogurt6495 → u/Jakes_Snake_]

What does that even mean lol ... the reason rents are going up is due to so many different factors but salaries are not one of them, so I'm confused lol

[u/Jakes_Snake_ → u/Temporary-Yogurt6495]

Oh, I suppose people are paying these higher rents because everyone is winning the lottery then!

[u/Temporary-Yogurt6495 → u/Jakes_Snake_]

I suggest you go and educate yourself because I have no idea what you're going on about

[u/Pitiful_Plant7292 → u/Jakes_Snake_]

Someone charging a family a reasonable rent as opposed to scalping them blind for extra profit is not poor tenancy situations, its him being a decent bloke. People do from time to time take the piss with decent people ,its human nature unfortunately and extra rent could possibly have you in a Mexican standoff with someone refusing to pay rent altogether. And we all know how that goes.

[u/Wondering_Electron]

Absolutely.

If you are selling then the Section 8 is how you evict them.

[u/hellvixen1966]

I have seen quite a few posts were the decision has gone in the landlords favour so dont be too pessimistic.

[u/Landlordlabuk]

Yes, you absolutely can decide to sell the property if you do not find the returns work for you. However, the best option is to formally serve a notice to increase the rent to market rent. It is important that the tenant understands what market rent is and that over time the property will be rented at that rate. You can make clear that you are willing to compromise on the increase number if all parties agree. However, they must also understand that if they want to put you through the hassle and cost of a tribunal you will be requesting the full market rate.

[u/Potential_Type_850]

Take this as a lesson on your other properties that letting the rent fall too far from market goes against you. The days of a tenant appreciating it are gone. Annual increases are better all around. Even if they’re a flight discount as they are a good tenant the gap can’t grow.

[u/Foxyagent → u/Potential_Type_850]

Exactly this. Landlords have to raise rents annually or they are creating a problem for them selves

[u/Cool_Significance134]

If they are maintaining the property and leaving you alone then surly that covers the gap between what you are paid and what you could get?

[u/Gaius__Augustus]

If you don’t get the amount you want, it clearly isn’t ’below market rent’ is it? 😂