If you aren’t seeing a sufficient return on investment, landlords often turn to increasing the rent to help them earn more. This, however, does come with some questions, which we are hoping to answer in this quick blog post.
The tenancy agreement that you have given to your tenant usually explains the procedures that you or your letting agent will need to undertake to increase the rent. This is, however, subject to certain rules regarding time periods and other variables.
For example, if your tenants are on a fixed-term tenancy, you can’t increase the rent during the term unless you have permission from them. However, after the 6 months, year etc ends, you can increase rent upon renewal.
If your tenants are on a rolling tenancy, that repeats weekly or monthly, you can increase the rent upon renewal, but only yearly. The tenancy agreement could have the correct procedure for this type of change, but in the case of there not being one, the rent can still be changed. You could come up with a new rent price with your tenants, then all parties would then sign an agreement to this effect, or you can use the “Landlord’s notice proposing a new rent” form written by the government, which you can download here.
One important thing to note is that this must be justified. If you do raise the rent, it must be fair and within reason. If your tenant/tenants feel that the new rent is excessive, they may go to a rent assessment committee to review the case.
We can help. We will make sure your property is legally compliant, offer long term 3-5 years of guaranteed rent under a fully managed lease contract, and add the property to our rental or serviced accommodation range. We will also take care of all the ongoing associated costs with renting property such as day to day repairs, so you can rest assured knowing your investment is being looked after. Contact us for more information.