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Should I Increase Rent For My Tenants?

As a landlord, there will be times when you ask yourself ‘should I increase rent for my tenants?’ Determining whether to raise the rent is a critical decision that requires careful consideration. Understanding the factors involved can help you make an informed choice that benefits both you and your tenants.


This article details the various aspects to consider before deciding on a rent increase.

Can I Increase Rent?

Sometimes it’s not a question of ‘should I increase rent’, but ‘CAN I increase rent?’ In the UK, landlords in general have the right to increase rent, but you do need to meet certain conditions.


Currently, as a landlord you can technically increase rent whenever you like, as long as the tenant agrees or there is a rent review clause in the tenancy agreement. This is likely to be limited to once a year under the forthcoming Renters Reform Bill. The increase should be in line with market rates.


Understanding the legal requirements and following proper procedures is crucial to avoid any potential disputes or legal issues with your tenants.

Reasons to Increase Rent

●      Market Trends: If the rental market in your area is booming and demand is high, it may be justifiable to raise the rent to reflect the current market rates.


●      Property Upgrades: If you've invested in significant property improvements or added new amenities that enhance the tenant's living experience, a rent increase might be reasonable.


●      Inflation: When general living costs and inflation rise, it's natural to adjust the rent to account for increased expenses, including property maintenance and taxes.

Reasons Not to Increase Rent

●      Long-Term Tenants: If you have reliable, long-term tenants who take good care of your property and consistently pay rent on time, maintaining a stable rental amount can encourage tenant retention and foster a positive landlord-tenant relationship.


●      Competitive Advantage: Keeping your rental rates competitive within the local market can help attract and retain quality tenants. Overpriced properties might drive tenants to seek more affordable options, leading to increased void periods.


●      Economic Hardships: During challenging economic times, demonstrating empathy and understanding by not increasing rent can strengthen the bond with your tenants and promote goodwill.

Should I Increase Rent Every Year?

Approach a regular annual rent increase with caution. While it might seem like a consistent way to keep up with inflation, it's essential to evaluate the local rental market, economic conditions and the financial stability of your tenants before implementing annual rent increases.


Consider the overall impact on your tenants and whether them leaving and finding new occupiers is worth the increase.

Increase Rent Notice – What You Need to Know

When planning to increase rent, it's crucial to provide tenants with proper notice according to the regulations outlined in the tenancy agreement and the law. Currently, this notice period ranges from one to three months, depending on the type of tenancy. Providing clear and transparent communication can help tenants understand the reasons behind the rent increase and plan their finances accordingly.


Before deciding to increase rent, it's advisable to assess your individual circumstances, consider the local property market and evaluate the potential impact on your tenants. And make sure you learn about the Renters Reform Bill.


Striking a balance between maximising your rental income and maintaining a positive relationship with your tenants is key to successful property management. By following legal guidelines and communicating effectively, you can ensure a fair and mutually beneficial agreement for both parties.


For help with property management, speak to us today. Call 0208 5757630.


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