Good Tenants - what's it worth to keep them???

Indicating the rent rise in twelve months will almost certainly lose you your tenants.
It comes accross as giving with one hand while taking away with the other.
you are giving them more than the usual 28 days notice, and by letting them know a year in advance makes it look like you are doing them this enormous favour , when in fact it is they who are doing you the honour in respecting your property to the extent that you don't want to lose them.

Be gracious, it may be rewarded, and leave the rent at what they have suggested for now.

What price profit?
 
I would deffo drop that rent by 100e deffo deffo, I rent 2 houses, and if you have good tennants, hang on to them at all costs at the moment...just my view!!!!!
 
Have to agree with loughshinny.........
We have a few rental props also.........we make our money from capital appreciation and low vacancy.
Hence go for undermarket rents and 12 month leases.
I make it clear to all prospective tenants that I charge less than market rent but I expect them to treat it like their own.
I take a large deposit which I find weeds out the messers in this regard.
 
I'm a tenant who is hoping to try to get his rent reduced. I rent a 2 bedroom apt. on the outskirts of galway city for 750e per month. It's a rental agency I'm dealing with. I've been renting for 3 months with a 6 month lease. I know I could have got it originally for 700e as the lease agreement had this figure written on it when drafted, didn't haggle as I needed somewhere to live immediately at the time. What I plan to do is take a chunk of my savings and pay the next 6 months ahead. My query is how much would be reasonable to knock off for paying upfront like this. I was hoping to pay 4000e upfront for 6 months saving me 500e over the period. Should I go even lower as I know I'm already paying over what was originally expected?
 
sonandheir said:
I'm a tenant who is hoping to try to get his rent reduced. I rent a 2 bedroom apt. on the outskirts of galway city for 750e per month. It's a rental agency I'm dealing with. I've been renting for 3 months with a 6 month lease. I know I could have got it originally for 700e as the lease agreement had this figure written on it when drafted, didn't haggle as I needed somewhere to live immediately at the time. What I plan to do is take a chunk of my savings and pay the next 6 months ahead. My query is how much would be reasonable to knock off for paying upfront like this. I was hoping to pay 4000e upfront for 6 months saving me 500e over the period. Should I go even lower as I know I'm already paying over what was originally expected?
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How about - quote your landlord the lowest rent locally for the same status property. Calculate how much your money would earn in a RABO deposit account over the period - and you have your 'fair rent' sum to suggest to your landlord. In effect you are saying "This is what I can get the same service for elsewhere. Match it or I'm off to do so, exerting my self-respect and saving myself money in the process". I was a tenant (in Dublin) in the early 1970's and had to move on several times - at great expense and inconvenience to myself - before finding a situation which was not an alienating (in a couple of instances degrading!) experience and feel tenants should - whilst keeping all the terms of their contract - treat their purchase of a service in a businesslike manner.
 
I agree with the majority of posters - good tenants are worth their weight in gold. But whats going to happen upon renewal next year? Will they try to get the rent lowered again?

How come rent is coming down and the lending rate going up?? If this trend (as is expected) continues for the next 18-24 months, where do you stand then Geri?
 
ACA said:
How come rent is coming down and the lending rate going up??
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Because rent is based on supply and demand, and is not based on the cost of money. Whatever the landlord is paying for the property is completely irrelevent to the tenant, as that landlord will find out if they use "interest rates go up" as a justification for trying to raise rents.
 
Carpenter, next year the rent will be dictated by the market, not a landlord's costs, as is the case this year.
 
ACA said:
I agree with the majority of posters - good tenants are worth their weight in gold. But whats going to happen upon renewal next year? Will they try to get the rent lowered again?

How come rent is coming down and the lending rate going up?? If this trend (as is expected) continues for the next 18-24 months, where do you stand then Geri?
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Funny this post should be ressurected just now as next month the lease is up for renewal again! I have done a search on Daft for similar properties to mine (3 bed semi) in the Clondalkin area. This year there are only 9 other similar properties available for rent. Average monthly rate is 1200, (only three of them are 1100 and these are a bit outside the village, rest are up to 1300 in the village, ours is right in the heart of the village). All of them have been posted within the last 5 days. Compare this to the same time I checked last year, there were 14 3 bed semi's for rent, some of them on the site for over a week with average asking price of 1100. Looks like the market in Clondalkin Village is a little better this year for landlords. I will look for an increase in line with what the market is dictating and see what happens. Will keep you posted.
 
Think about what the alternative may cost you. You could get landed with new tenants that seem fine but in a year you end up with carpets that look like a herd of buffalo ran over them, a couch that looks like a car sat in it and more damaged electrical appliances than a scrapyard. That all costs money. The value of good tenants is very hard to quantify but well worth €100 a month.
 
Numbs said:
Think about what the alternative may cost you. You could get landed with new tenants that seem fine but in a year you end up with carpets that look like a herd of buffalo ran over them, a couch that looks like a car sat in it and more damaged electrical appliances than a scrapyard. That all costs money. The value of good tenants is very hard to quantify but well worth €100 a month.
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Numbs, totally agree, I don't want to loose these tenants. On the other hand, I'm not going to just keep charging the same rent year after year when the market is showing something else. Last year the market was dictating a lower monthly rent, so I dropped it.

I know the tenants love where they live and are now quite settled in the area. Their neighbours are very nice people, the house is in great condition with all new appliances and a nice back and front garden. So, of course I will look for an increase and then we will probably have to negotiate! As I said, will keep ye posted!
 
Hi Geri,
Glad you posted here (kept meaning to). Took me a little while to realise that this was a very old thread!! You're right that although good tenants are a great asset, a landlord needs to earn a crust too especially with rising interest rates. It's a two way street after all. We rented a place this year, nicely furnished, all mod cons etc. Adverised on Daft, inundated with phone calls and emails and let it within a week, which was the time it took us to check out references. You can't always trust the number of places left on Daft because people don't bother cancelling the ad when the place is taken. For example, we left ours up for three weeks while references were checked, bank drafts cleared and contracts signed etc. Similarly, when we wanted to buy, a lot of the people said the places were sold and that they'd forgotten to take the ad down.

It's all well and good to try to keep good tenants but rental property is a business and has to be run as such.
 
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