Landlord Tips: Raising Rent The Right Way

Rent increases are a normal part of property letting, but they must be approached with care to maintain a positive relationship with your tenants. At Burnett's, we understand the intricacies of property management and offer guidance to help you navigate this process smoothly.

Start with the Tenancy Agreement:
For fixed-term tenancies, rent can only be increased if there's a rent review clause in the agreement. Without one, you'll need to wait until the fixed term ends unless the tenant agrees in writing. For periodic (rolling) tenancies, landlords can propose an increase once a year using a formal notice.

Understand the Local Market:
Before making any changes, compare similar properties in your area to ensure your new rate is fair and justifiable. An unrealistic jump in rent could drive good tenants away or lead to disputes.

Communicate Clearly:
Communication is key. Give tenants plenty of notice in writing, explaining the reason behind the increase and when it will take effect. Transparency helps avoid misunderstandings and shows that you're acting reasonably.

Follow Formal Procedures:
In England, the formal route for increasing rent in a periodic tenancy is by serving a Section 13 notice. This must provide at least one month's notice and outline the new amount and the date it starts. If the tenant disagrees, they can refer the matter to a tribunal for review.

Balance Business and Tenant Needs:
Striking a balance between your business needs and tenant satisfaction is crucial. Regular, modest increases are often better received than sudden, steep hikes. A fair and transparent approach maintains goodwill and helps retain reliable tenants.

Handled correctly, a rent increase doesn’t have to be contentious—it can simply be part of a well-managed tenancy that benefits both landlord and tenant. At Burnett's, we're here to support you in making these decisions with confidence.