WHY RESIDENTIAL RENTALS LEASE’S DON’T AUTOMATICALLY INCREASE YEAR TO YEAR?.
Here we are focusing on Residential, not Commercial Rentals. A Commercial Rental will typically follow CPI or, attract an automatic rental increase year-to-year. The Landlord-Tenant relationship relies on a different set of regulations and guidelines.
Though a Landlord is an investor, for a Residential Property v a Commercial Property, a Landlord is providing necessary housing to another member of the public. Any legislation or qualified agency advice is based on that understanding.
In-order to apply a realistic rental value to a residential property, a Landlord and or their Agent require a good understanding of what is already being achieved, the qualities of the property and demand in the marketplace. They usually rely on their recent experience in letting of other comparable properties in that area. If they don’t have that experience or any recent letting of similar properties to refer to, they will look at other comparable advertising. This is readily obtained by going online.