Landlords often don’t realise how important timing is when making rent increases.
At this time of year many tenants are beginning to think of change – going overseas, new jobs, new horizons – but most won’t do anything about it in the short term as end of year is a busy time. Unless an added trigger forces the decision on them.
Putting the rent up is one such trigger and is better put on the table at a more settled time of year. Of course, tenants can decide to move at any time of year, but summer, Xmas and New Year, end of academic year, extended holidays (more time for house-hunting, packing and moving) all make it more likely that rent rises will nudge tenants into change – especially if it has already been on their mind.
Furthermore, when tenants move during this time, vacancy periods can be longer as those who don’t have to move hunker down to make the most of the silly season.
It is worth hanging onto good tenants who look after the property and pay the rent on time at any time of year, but even if it is high time for a rent increase, it is worth letting the holiday season pass before putting it on the table.