Hi All
I am an Irish landlord living overseas renting a property in Wicklow (3 bedroom house / very good condition).
I have been renting the property for 4 years. Same tenants.
Lease renewal is due and the letting agent who is managing the property on my behalf has informed me of my option to increase rent (4% max increase) for Wicklow area.
Current rental is 1,300 PM. 4% increase would bring it to 1,404 PM (RTB calc).
The increase seems like a steep jump. I am happy with my tenants and I want to be fair with any increase. I have done a search on similar properties around the same area and some of them are well above this amount (I appreciate that this doesn't mean these prices are fair). Not sure to keep increase to a minimum given good tenancy or go with the 4% max. The letting agent believes its a fair increase.
I don't make any 'cashflow profit' from this rental. Rent comes in and goes straight back out into mortgage repayments, letting agent costs, insurance and all the usual expenses. Then I'm hit with a hefty tax bill each year.
Just wanted to get people's thoughts before I renew - appreciated.
Eistigi
I am an Irish landlord living overseas renting a property in Wicklow (3 bedroom house / very good condition).
I have been renting the property for 4 years. Same tenants.
Lease renewal is due and the letting agent who is managing the property on my behalf has informed me of my option to increase rent (4% max increase) for Wicklow area.
Current rental is 1,300 PM. 4% increase would bring it to 1,404 PM (RTB calc).
The increase seems like a steep jump. I am happy with my tenants and I want to be fair with any increase. I have done a search on similar properties around the same area and some of them are well above this amount (I appreciate that this doesn't mean these prices are fair). Not sure to keep increase to a minimum given good tenancy or go with the 4% max. The letting agent believes its a fair increase.
I don't make any 'cashflow profit' from this rental. Rent comes in and goes straight back out into mortgage repayments, letting agent costs, insurance and all the usual expenses. Then I'm hit with a hefty tax bill each year.
Just wanted to get people's thoughts before I renew - appreciated.
Eistigi