What is a fair rent increase in the UK?

As stated on the UK Government website, a rent increase should be fair and realistic. This means in line with the average local rents, but often results in landlords trawling the internet for hours in search of similar properties and to calculate new pricing.

This time consuming process is often undertaken when you need it to be quick, to provide a proposed rent increase or to secure new tenants for your units.

So before you spend the time, is rental price the issue?

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If you’re looking to increase the rental price in hopes of reaching a different target market or audience, a rental increase might not achieve your goals. It’s all about marketing your units, something we specialise in at Staykeepers.

Unlike a traditional referral agent, we don’t just rely on our own distribution channels. We utilise more than 400 channels, bringing you previously untapped potential tenants from sources you would otherwise be missing out on.

Staykeepers combines market-leading smart technology with our property marketing experience to find the right tenants for your buildings. Our search can be tailored for long term occupancy, helping you optimise revenue, and find tenants for the long term.

Or are you looking to scale your net operating income?

If you are looking to scale your net operating income, a rent increase isn’t the most effective method. Whilst ensuring your units are aligned with the market is crucial, a strategy that is more focused on growth is short term letting.

This can also be combined with your long term lets to create a cohesive revenue plan.

A great showcase for this are Staykeepers’ clients Mount Capital and Sav Group. They launched a 100-unit build to rent (BTR) facility and were experiencing periods with empty units. They wanted a solution to generate revenue, without subtracting from their own work to secure long-term tenants.

Our team increased revenue to £1.5k per month for each unit, higher than the long term rent for a studio in Harrow. Find more on their story here.

And this isn’t just a one-time result, with clients such as The Mansion Group experiencing 20%-30% higher monthly revenue per unit.

So, is a rent increase the right strategy?

If you currently have empty units, the first priority should be finding tenants. Once you have tenants in, you can start building a data picture of where the rent should be, the length of tenure, the demographic etc. Once you have a stabilised building then you start looking at rent increases.

It also depends on your goals, but hopefully this article covers what a fair rent increase is and the other options available to you.

Want to know how much you could be earning from short term lets? Click here to use our free online calculator.

You can also discover our services here, or contact the team today here.

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