Increasing the Rent

If you have a 6 month or 12 month tenancy and your tenant wishes to renew, you can issue a new tenancy on a higher rent. Your tenant then has a choice: accept the new tenancy on the higher rent or leave and find somewhere else.

Increasing the rent can sometimes trigger a move, so if you have good tenants and you don’t want them to leave, think carefully before you ask for more rent. It’s often wise to take a little less in rent than have a long void period with no rent coming in at all.

If the Landlord allows the tenancy to run-on after the fixed-term into a periodic tenancy – month to month if the rent is paid monthly. This can go on indefinitely if the tenant stays.

In this situation the rent can fall well behind the market rent, so at some point you will want to increase it.

Where the tenancy agreement is silent on rent reviews Section 13(2) of the Housing Act 1988 makes provision for rent increases in perodic ASTs. There is a prescribed form for this purpose (see link to the Section 13 notice below) and specific rules which must be followed.

Section 13 notice

In the case of weekly, fortnightly or monthly tenancies the notice period must not be less than one month’s notice from the date of service of the Section 13 and commence from the next rent due date.

The rent can only be increased once in a 12 month period.