MGH Property Services
16th March 2022
RE :- Proposed Rent Review – April 2020.
We are writing to request your thoughts regarding our proposed rent review next month.
Unfortunately, since our last rent increase 2 years ago ,due to the astronomical increase in the price of the utility services the combined Gas & Electricity Bills have nearly doubled. In reality, this increase is in all likihood a combination of both the hike in prices & a increased use of Gas & Electricity due the fact that it appears more of you have been spending more time at home, which of course, you are perfectly entitled to do so. In addition council tax is also increasing by 5.4% this year alone, I cannot recall the exact level of last years increase but I vaguely recall it being between 2-3%. Also there are the other costs relating to materials, maintenance etc which have all increased.
I cannot predict what level of utility increases there will be in the future & what we can absorb and so I cannot guarantee that there will not be any further increases, however I try our best to limit these by trying to absorb costs and making economies where possible.
In an attempt to reduce costs I did switch the utilities to another supplier, but any benefits from this have been negated by recent increases.
In light of the above, I am proposing a rent increase of less than £10 per week to an additional £40 per month for all tenants. Whist I fully accept this will not be welcomed, I do feel it is both realistic & resonable. Some might feel this proposed increase might seem excessive but we have to look at the broarder picture. Also the fact that our rental rates are most reasonable compared to other properties on the market. To confirm this, please feel free to look at comparable rooms to rent on websites like SpareRoom. https://www.spareroom.co.uk Simply enter your postcode to view similar properties.
One point I would also say is that the properties offered on this site with broadband do not in general include access to Sky & BT sports television. I accept that maybe not everyone uses these facilities but I have to look at matters from a overall prospective.
I am also looking at ways to offset future increases one of which will be to combine the SKY & BT Sports packages, but this needs to be investigated without a significant downgrade in other services provided.
I will issue new tenancy agreements to all tenants once this increase is implemented, however in order to be fair & reasonable, I will not hold any tenant to the initial term of the contract if they feel that this increase is unfair or anyone who has previously informed me that they might possibly be moving on during the course of the year.
I hope you agree that whilst this increase is unpleasant it is necessary as we cannot continue to absorb such an increase in costs.
I now await your feedback.