As a landlord, adjusting rent is an inevitable part of managing your property. Whether you're responding to rising costs or aligning with market rates, it's crucial to handle rent increases with care and consideration. Here's a guide to doing it right.

Review the Tenancy Agreement

Before making any changes, check the tenancy agreement. For fixed-term tenancies, rent increases are only possible if a rent review clause exists. Without one, you'll need to wait until the term ends unless the tenant consents in writing. For periodic tenancies, you can propose an increase once a year using a formal notice.

Assess the Local Market

Ensure your new rent is competitive by comparing similar properties. An unrealistic hike could drive away good tenants or lead to disputes, so it's essential to justify any increase with market data.

Communicate Clearly

Transparency is key. Provide tenants with ample written notice, explaining the reasons for the increase and when it will take effect. Clear communication helps prevent misunderstandings and demonstrates your fairness.

Follow Formal Procedures

In England, increasing rent in a periodic tenancy involves serving a Section 13 notice. This must give at least one month's notice and detail the new rent and start date. If tenants disagree, they can appeal to a tribunal.

Balance Business and Tenant Needs

Aim for regular, modest increases rather than sudden, steep hikes. This approach is often better received and helps maintain goodwill, ensuring you retain reliable tenants.

By following these steps, you can manage rent increases smoothly and maintain a positive relationship with your tenants. And remember, if you need assistance with managing your property or finding the right tenants, we're here to help.

 

 

 

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