I’m going to tell you about how you can increase your rent for an existing tenancy. Believe it or not, there’s a right way to do it and there’s a right time to do it.
There’s a process you need to follow and documents that you need to use so I wanted to share this with you in case you weren’t already aware.
I see a lot of letting agents and landlords getting it wrong so by sharing this, hopefully everyone will be able to get it right, every time.
If you’re a landlord of an existing tenancy and you haven’t increased the rest for a few years, it’s probably on your mind that you should. You’ve probably held off because you don’t want to upset anyone or rustle any feathers.
Or perhaps, you’re a new landlord with a new tenancy so you’re planning to make sure you’re optimising on the rent throughout.
To be clear, this isn’t about being greedy. Rents increase in line with market value. That’s fact. You are entitled to make profit and it’s a property investment. Never feel guilty for making a good return on your investment.
The first thing you need to know is that technically, you can only increase the rent at the end of the tenancy. With that, you need to give at least a months notice, but my advice is to give more than a month. You need to give them warning and a bit of flexibility so give them as much notice as you can.
They need to agree to this.
If the tenancy is coming to an end, then you can agree to terminate the existing contract and draw up a new one with the increased rent – this is why they need to agree to it.
You can only increase rent once a year, and if you do increase the rent, it must be fair and in line with the current market value. You can’t take advantage of the tenant by increasing the rent outside of the realms of reality.
If you do do this, your tenant is entitled to challenge the rent increase through a tribunal so it’s not really worth it – it’s just going to come back round to your eventually.
Anyway, the document you need to increase the rent is a Section 13. I can send one to you if you need it.