UK Landlord Forum / Life

I usually make singular decisions but dont know any other landlords and hoping for some advice and sanity check. I have two properties, both with tennants who pay like clockwork and have never been arrears:

1st house let to current tennant for 4 and half years at £700/month - now on rolling monthly (initial contract now renewed), always reliable payment although I havent inspected the property since then (I know not ideal, covid and busy with main work).

2nd house let to current tennant for just over 2 years at £800/month - now on rolling monthly (again initial contract not renewed), always reliable payment. Again I havent inspected since start of tennancy, however a worksman has just advised me the property isnt in great shape - drawing on most walls, carpets not really been looked after etc.

Estate agent advises they are both worth around £900~950/month now and as they arent on current contract I ought to be upping the rent. Theyre trying to sell me on their combined rent collection/legal service at 9%/month. My costs have gone up and I've put this off for ages but in fairness they need to be paying more.

Given that both are reliable payers and another tennant is an unknown, my fair view on this is to:
- Discuss with both tennants that rent will need to go up. Negotiate something reasonable but negating hassle/unknown of reletting e.g. £800 and £900 respectively. I could try to relet but once you factor in the cost of doing so, the unknown etc etc. I'll take reliable payers at slightly less all day long over the potential downsides of a nightmare tennant
- Arrange annual property inspection and issue notice to deal with any current property issues - i.e. give the 2nd tennant the opportunity to rectify issues and fingers crossed there are no issues with the 1st. Curious how others do this - always via the estate agent who let or do you do inspection yourself and simply write an encouraging letter/email to start (presume Section 146 is last resort)
- Either take up estate agents offer of rent collection/legal and draw up new 12 month contract or leave it on a rolling monthly with separate landlord rent/legal insurance

I'm just wondering if others agree/disagree with above and how others would handle this?

Those look like good thoughts.

I agree that the rent needs to go up. I'd have the conversation and agree that the rent needs to be "here" and then agree to move to that over a reasonable period. So if you want to get to a £100 increase, go to (say) £50 now, with the understanding that there will be another increase, maybe in 12 months that will be closer to the market rate.

If the tenants are decent and there for the long term, unless they're doing structural damage, I'm not that fussed about inspections. If someone's in a property for 5 plus years, the chances are I'm going to have to replace the carpets and paint all the walls when they move out. So I'm not bothered about cosmetic damage, I don't have to live there and my standards aren't their standards.

I don't see what the agents will do for you that's worth the loss of income. How would your life be better if the agents were involved? I use agents myself, so that's not coming from a biased place, I don't see what they would add for you, given your situation.

Annual modest rent increases do not need to be baked-in to a contract, but they are good practice. I've never talked about Sections for anything at all, really (I have sent a warning Section 21 in my time, never used one). In my experience they can be both informal and expected. If you keep them annual and modest it is the perfect way of boiling the frog and keeping things harmonious - everyone expects it, and in the odd year when you don't feel the need to do it - well, the Tenant is actually gushing with gratitude.

Like, for example, things are tough for most people this year - you might not do it this year. But it only becomes a real option if you've already established the habit of doing regular rent increases (which you have failed to do). The key words are simple to remember - regular and modest. This negates the scenario that you now find yourself in - of looking at a perceived shortfall of £150 to £250 per month... £1,800 to £3,000 per year... all on the word of an Agent (an Agent who I can categorically tell you does not have your best interests at heart).

Effectively - without judgement - your own mismanagement and cavalier approach to being a Landlord has partially created the problem you describe. You should shoulder some of the burden and not take the opinion of an Agent to bilk your good, long-term, Tenants with a huge hike in rent because you have £ signs in your eyes. Go small, but reset expectations that rent rises will be regular and modest from now on. An Agent is not required for any of this... or beneficial.

A long-term paying Tenant is the utopia... the wet-dream of the Landlord class. You have it. Revel in it.