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So I have done it, I have put through my first ever rent rise for existing tenants. Guess what, they aren’t happy.I explained that this is a response to section 24 and that a 6% rise didn’t anywhere near cover it. Their response: ‘we knew about the tax but didn’t expect it to be passed on.’We will see if they choose to leave - any commercial providers offering rooms in a house share yet?I suggested they get get in contact with the housing minister to give a tenants view on the tax...Has anyone else done this? What has the response been?
Were you around when interest rates dropped to an all-time, historic low? If so did you drop your rents in line with your reduced costs?
Landlord costs are always going up or down.
Charge market rate, maybe slightly lower (to engender better relationships and longer term tenancies..) is my view.
Mr PAYE eh? My late uncle was part of a fairly small group working on PAYE prior to introduction..
I think I have been charging below market rent, as a loyalty policy. So am brining rents up to market value to offset some of the £2500 I will lose per property per year. Don’t you think I should?
Every year for the past five years I have sent my tenants the following letter. "Dear xxxx. Owing to the continued low interest rates and stagnant economy there will be no rent increase this year. Thank you for maintaining the house in good condition and I hope you continue to enjoy living there. Kind Regards ...."
I don't have houses out of "greed". I have them to try and make the best of my savings so I will not be a burden to family or state in retirement and because there is a need. I also enjoy the relationship management side of the work and strive to provide a good service. I'm not convinced that social housing provides better service or quality at all.
I don't like raising rents and I want to keep my tenants and to keep them happy. But the government is making a concerted effort to drive me out of the market. The last thing I want to do is make my tenants homeless or to burden them with extra costs but what am I supposed to do? If l can't cover the costs the houses will be repossessed and that is not in my interests or the tenants .
Thinking about it I’ve never had an interest rate drop. All my properties are on fixed rate deals
No tenant ever likes rent increases.
LL should push rents to the maximum they can.
The costs burdens on LL will only ever increase.
LL need to keep their rents up.
A business needs to consider the costs of keeping the property in good order.
Rents need to be kept at market prices.
S24 will cause market prices to increase
Even LL not subject to S24 will increase their rents to match S24 rents.
I sent the following letter to all my tenants in early 2015. I have followed it up with small incremental increases again this year and will continue to do so each year now until S24 is fully implemented. So far none have left and all have paid the increase.
"This letter is to update you on unfolding events within the rental industry that are about to burst onto your TV screens and be written about in your newspaper.
Due to the incredible stupidity of this current government and more especially the crass buffoon of a chancellor of the exchequer, George Osborne, who, incidentally, now needs 4 budgets a year to keep the country from going bust, because he can’t tax Google or Amazon properly, (or doesn’t want too).
They have had to devise such a lunatic way of assessing all landlords taxable incomes, that over 4.6 million tenants in the UK are about to receive letters such as this one or simply can assume, by default, that they will be made homeless over the next 4 years as their Landlord is bankrupted by the State.”
This new tenant tax is called ‘Clause 24’, it will affect you and many thousands of other tenants in the country.
We are currently mired in a legal battle to get it stopped along with hundreds of other UK Landlords across the UK.
It is being fought because the change is “discrimination ” of a particular occupation (Landlords), and a particular group of people within it, (Tenants), who pay for everything we do through rents.
This battle is currently being waged against the government and they are fighting us with everything they have got, including smears and bare faced lies in a vain pretense of saying its for the good of first time house buyers and they are somehow removing a favorable tax treatment of our business.
If that’s the case, they should apply ‘Clause 24′ to all businesses and watch the country go bankrupt overnight especially George Osborne’s family business as the World calls the UK a “No-go” area of stupid taxation rules.
Political cronies that will comment on this over the coming months will attempt to blame everything and everybody but themselves, but they are all aware of this disaster, including Conservative, Liberal, Scottish National and Labour MP’s who have given the green light to your rent rises by not killing off this discrimination of a taxation change stone dead before it even got to the statute book.
It is now the law of the land and it breaks my heart to raise your rent, but the choice is stark, our accountants are advising us and all other Landlords to either increase now or lose the property that you rent, as we face potential massive increases of tax to the Government.
Your rent increase is on the accompanying document, if you wish to complain to your local MP, council or newspaper please do, as the more this gets publicised the better our chance of getting it reversed.
You are wonderful people and do not deserve to be treated in such a fashion, by a lying cheating politician called George Osborne, that simply doesn’t give a ‘fig’ about your or our financial situation and have created a ruinous tax change without seeing its consequences.
We shall continue to fight this deplorable tax law change through the Law courts and I will keep you updated of any developments, as they arise."
Wow that’s a well worded letter. Very good points and has lots of elements to get message across.
I like to earlier action taken also. Prewarning rises.
Coming soon Investorsk8.com
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Life Lessons : Trusting the Wealth Creation Sector
The answer lies in my signature link.
Would tenants sign a petition?
If tenants could co ordinate their voice better we would see a change
But they are a more disparate group than even we are
There is no strength in depth so any message is watered down unfortunately
I tried a similar letter but it ended up junk mail to them
My passion is not there passion . I wish it was
Think of politicians on our doorstep .at general election time
My attention span for them is 3 mins . Theirs though is for life
We need to close that gap though. I dont know how , Unite with them against the common enemy
But everyone is too busy dealing with the day to day stuff life throws at us
But bit by bit we gain momentum
Rent rises take a long time to filter through to have an effect on policy
Every few weeks it seems i am raising rents though on a rolling programme
Last week its a 625 pcm to 700 pcm
Next week its a 500 pcm to 650 pcm
I had let rents drift because interest rates went down and i was doing ok
But then this Tenant Tax came along and has forced chnages . The tenants suffer
The mark we make today will be seen and heeded in a few years time and changes will occur
This S24 is a 5day Test match game not a 20/20
Be patient in the field and just concentrate on each ball being bowled
Jonathan Clarke. http://www.buytoletmk.com
Not that I'm teaching you to suck eggs here but clearly despite your best efforts you have failed to to ensure that your message this time about rents and S24 has got across to tenants and is generally ignored no matter how well thought out and constructed.
I agree that many LL communications are regarded as so much junk mail.
So I was thinking how could you or any other LL for that matter get across their various messages even the more boring day to day ones.
Well I was thinking what do very few people ever ignore?
Mostly accessed by mobile devices.
Name me anyone that can resist the temptation to open a video message sent to them this time by their friendly LL!!
So as a way to grab attention perhaps you could prepare a video message either via YouTube or other means like whatsapp.
I'm sure if your tenants received a video message notification from their LL they would actually watch it.
I doubt they would treat it as junk mail and just delete it before even viewing.
You could obviously have videos to address just one tenant or a generic one for all your tenants.
As part of ensuring your tenants get to see the issues you have and wish to inform them of then I reckon social media does it.
I have never been able to ignore direct contact on my mobile!
I frequently ignore emails etc and only get to them when I can be bothered.
The immediacy of getting your message to your tenants' mobile should ensure that your management messages are not regarded as so much junk mail.
You could literally create your own video messages with your own smartphone
This would save a lot of administration on your part and enables to get messages across to your tenants very quickly.
Most tenants will give you their mobile numbers and very few of them will ever change..
A mobile number has become a bit like an email address in that you have the same one for life!!
With number portability the days of constantly having new numbers because of network change are over.
So being able to deliver important messages via videos from you I reckon would attract the attention of your tenants.
It does seem bizarre but I reckon stuff on paper is universally being rejected as anything of interest.
Stick exactly the same information on social media and all of a suden your tenants are interested in such video messages they may receive from their LL.
Of course what is good for the LL is also good for the tenants.
So necessarily you can advise tenants that you are always willing to receive any videos from them concerning any issues relating to their tenancy.
I do a lot of my tenant management via text.
I used to consider it a bit rude and should have really called and spoken.
But this doesn't appear to be the case and text is considered perfectly acceptable and not rude at all.
So I use text all the time now.
The days have long gone when texts were restricted and cost money .
Plus there are all the other apps to use to send messages.
So as a LL I think you need to be signed up to at least these following apps
Maybe some of the other messaging apps like Line and Viber.
It seems that tenants are no different from seemingly most of the population in that everyone is living their lives via their mobile phones and I'm as guilty as any of them as I type this on my mobile when I have a perfectly functioning lapop a few metres away.
LL need to get into the faces of their tenants effectively.
Using their mobile phones to achieve this seems to me an effective way to do this.
I doubt your messages will be ignored unlike all your written communication's.
Try doing it and see how you get on.
Report back and then tell us all how to do it effectively cos I'm not really sure myself.
I talk effective social media but I'm not that good at using it myself! !!