Rent increase for licensee.

James Bond Junior

I have a licensee renting a room in my house. All good bar a few minor hiccups here and there. They have been here a year in January.

I'm a 5 minute walk from a 3rd level which is expanding rapidly, 15 minute walk from the city centre and seconds walk from shops, bus stops so in a pretty enviable location especially for someone who may not drive.

Looking at daft prices have increased by about 25% since last year. Increase or leave the same? I was thinking a marginal increase of 5% or 10% is fair. Thoughts?

Tenigate

It's up to you.

James Bond Junior

Tenigate wrote: »

It's up to you.

Thanks for that but I'm looking for opinions.

Cheshire Cat

If the location is as desirable as you say and comparable prices are 25% higher, your lodger will be quite happy to still have a cheapish place, even if you increase the rent. I wouldn't go above 10% and would wait until the year is up.

whatnext

James Bond Junior wrote: »

Thanks for that but I'm looking for opinions.

As a landlord I've never put the rent up on a sitting tenant that I wanted to keep (until this year due to new rpz rules that is)

It's all about risk v reward for me. Is the potential extra money worth the risk of the tenant leaving and you ending up with a psycho in their place?

Tenant or Licensee makes no odds to me.

Sleeper12

I'd wait till the new year. If Tennant moves out you might find little interest till into the new year

James Bond Junior

Plan was to wait. Licensee is by no means perfect but keeps to themselves mostly and pays everything on the button. I don't want to go into the figures on here as people know the name behind the username and thus I don't want to advertise my business. I'll wait until the new year.

Jim 77

Between 5% and 10% seems fair; personally I'd go for 5% as it seems closer to the to the increase in the cost of living and wages. Also, lodgers tend to be more short term than tenants, so you can always make up the shortfall when he/she moves on.

the_syco

James Bond Junior wrote: »

Looking at daft prices have increased by about 25% since last year. Increase or leave the same? I was thinking a marginal increase of 5% or 10% is fair. Thoughts?

Generally, the main draw to be a licensee is the lower rent. So if it's the same as tenants in other houses, the licensee may move elsewhere.

I'd go 5%, maybe 10% if you want more money, but prefer if the current licensee goes.

cronos

Am I correct that the RPZ don't apply to licencees. So you can increase above the 4 percent at your discretion?

Samuel T. Cogley

cronos wrote: »

Am I correct that the RPZ don't apply to licencees. So you can increase above the 4 percent at your discretion?

Yep.

I'd go 10% explaining the situation but do 5% Jan/Feb and 5% Jun/Jul.

The_Conductor

Personally- if its your PPR, and you have no issue with the licensee- I'd suggest not increasing the rent at all.
Honestly- for the sake of keeping someone who isn't any trouble- its not worth the potential hassle you may have with someone new.
Its a licensee- so you have none of the risk a tenant would pose- the cards are in your hand- its not worth the risk that you'd scare off someone who isn't any trouble.

Its not just the money- its a quiet life- and having someone who is troublefree, even if they're not paying top dollar, is worth a hell of a lot in my eyes.

Leave them be- and don't increase the rent at all?

James Bond Junior

The_Conductor wrote: »

Personally- if its your PPR, and you have no issue with the licensee- I'd suggest not increasing the rent at all.
Honestly- for the sake of keeping someone who isn't any trouble- its not worth the potential hassle you may have with someone new.
Its a licensee- so you have none of the risk a tenant would pose- the cards are in your hand- its not worth the risk that you'd scare off someone who isn't any trouble.

Its not just the money- its a quiet life- and having someone who is troublefree, even if they're not paying top dollar, is worth a hell of a lot in my eyes.

Leave them be- and don't increase the rent at all?

I reflected on it a bit since starting the thread and I've decided to leave them alone. The rent paid is enough at the moment to leave me quite well compensated so I don't think I will be greedy. Thanks for all the replies, MOD lock up if you will.

The_Conductor

Done. I think you made a good call.