The tenancy agreement will usually specify the procedures that landlords and letting agents must follow in order to increase the rent. However, there are likely to be limits on these increases.
The first step is to check the tenancy agreement for details of any procedure that needs to be followed before you can increase your rent. In most cases, this will include giving notice of at least six months before you intend to increase your rent and serving a notice on your tenant at least 28 days before you intend to do so. The notice should specify how much the new rent will be.
Periodic Tenancy
If your agreement does not specify a procedure for increasing rents, then there are rules that govern how much you can increase them by without following any formal process. In England and Wales, landlords can only increase rent once every 12 months. They can also only increase the rent by a reasonable amount which is determined by their costs and what other similar properties are charging.
The landlord must give at least 28 days' notice to you before they can increase your rent. The notice must state the exact date that your new rent will come into effect and how much it will be increased by.
Fixed Term Tenancy
When you rent a property for a fixed term, your landlord cannot raise the rent during that time period unless you agree to the increase. If you do not agree, your landlord can only raise the rent when the fixed term ends.
As a tenant, it is important to keep in mind that there are certain laws and regulations regarding raising rent. For example, if your landlord wants to increase your rent during a fixed term lease, he or she must give you at least three months’ notice before doing so. This can be done either verbally or in writing; however, written notice is recommended for protection purposes. If your landlord does not give you adequate time to adjust to the increase in rent before it takes effect, then he or she may be liable for damages caused by late payment of rent due to lack of notice.
Remember
As a landlord, you must get your tenant’s permission if you want to increase the rent by more than previously agreed.
The rent increase must be fair and realistic, which means in line with average local rents.
Bluestone Properties is a property management company in South West London, specialising in lettings and property management. Our team of experts are all fully qualified in the area of letting and property management to ensure that we can give you the best possible service.
