I have a rental property with the same, excellent tenants in place for a decade. They pay me about 50% below the current market rate, which has been enough for me to cover the mortgage, and I've o my increased the rent (by a small amount) once in the entire period. There's a tracker mortgage on the property and I do everything by the book regarding tax and RTB etc.
My problem is that with the ECB increases that have already happened and will continue to happen, the mortgage is no longer covered, and I'm finding myself questioning whether it's still a good investment.
I can't increase the rent by anything significant because of the rent pressure zone rules, and I know for a fact that if I sell the property the family in there will be in real trouble. They have 3 kids under 7 and will simply not find another property in the area in the current market.
Is there anything legal I can do to come to an arrangement with the tenant to find a rent price that suits us both so that they are still housed and getting a good deal in today's climate, but I can cover my rising costs?
Seems like the rent pressure zone rules in this case are damaging to the tenant if my only other option so to evict them?
Any advice welcome. Thanks.
Edit: I appreciate the advice everyone! I think I'm not thinking big picture enough on the overall investment over time. I am thinking I'll increase by 2% and try to think long term regarding the asset. Not evicting a family because of feckin Vladimir Putin! Thank you all, this has been very helpful!
My problem is that with the ECB increases that have already happened and will continue to happen, the mortgage is no longer covered, and I'm finding myself questioning whether it's still a good investment.
I can't increase the rent by anything significant because of the rent pressure zone rules, and I know for a fact that if I sell the property the family in there will be in real trouble. They have 3 kids under 7 and will simply not find another property in the area in the current market.
Is there anything legal I can do to come to an arrangement with the tenant to find a rent price that suits us both so that they are still housed and getting a good deal in today's climate, but I can cover my rising costs?
Seems like the rent pressure zone rules in this case are damaging to the tenant if my only other option so to evict them?
Any advice welcome. Thanks.
Edit: I appreciate the advice everyone! I think I'm not thinking big picture enough on the overall investment over time. I am thinking I'll increase by 2% and try to think long term regarding the asset. Not evicting a family because of feckin Vladimir Putin! Thank you all, this has been very helpful!