How to raise the rent
Rents are continuing to rise across most of the UK as high demand combined with a fall in rental stock put the ball in the landlords’ court at a time when they are feeling the pressure of rising costs themselves.
If you are thinking of raising the rent, there are guidelines you need to adhere to.
When and how you can increase rents should be included in the terms of the tenancy agreement and the type of tenancy. Periodic agreements which roll weekly or monthly usually allow one annual rise in rent that you don’t need the tenants to agree to – but you must give them warning and the increase must be fair.
With a fixed term contract you can not increase the rent without the tenant’s permission before the end of the fixed (usually annual) term unless there is a rent review clause in the agreement that says it can be increased. A rent review clause usually sets out when the increase will happen and how much notice a tenant will get and the amount the rent can be increased by.
All rent rises must be fair and in line with average rents in the area, so do some research rather than plucking a figure from the air.
You can use a section 13 notice to increase rent if the tenancy agreement doesn’t contain a rent review clause, or it is no longer valid. A section 13 can only be used once a year and tenants have the right to challenge the notice through a tribunal.
In all cases, you must give at least one month’s notice of any rent increase if your tenants are on a weekly or monthly tenancy and six months if the tenancy period is yearly.
Protected, or regulated, tenants come under different rules and usually only allow rent to be raised once every two years.
Call 0800 294 4522 for a 60-second quote today!