Rent increases are an inevitable part of being a landlord, but handling them with finesse is crucial. Whether you’re adjusting to market trends or covering rising costs, there’s a savvy way to raise the rent that keeps everyone content.

First things first, dust off that tenancy agreement. For fixed-term tenancies, you’re only in the clear to increase rent if there’s a rent review clause. If not, patience is key until the term ends, unless your tenant gives the nod in writing. For those with periodic tenancies, a yearly rent hike is possible, but it requires a formal notice.

Before you make any changes, take a peek at the local rental market. Comparing similar properties ensures your new rate is fair and justifiable. A steep hike might send your cherished tenants packing or spark disputes.

Communication is your best ally. Give tenants ample written notice, explaining the reason behind the increase and when it kicks in. Transparency not only prevents misunderstandings but also shows you’re a reasonable landlord.

In England, the official route for a rent increase in a periodic tenancy involves serving a Section 13 notice. This requires at least a month’s notice, detailing the new amount and start date. If disagreements arise, tenants can take it to a tribunal for review.

The golden rule? Balance your business needs with tenant satisfaction. Regular, modest increases are more palatable than sudden, steep ones. A fair, transparent approach fosters goodwill and keeps reliable tenants around.

Handled with care, a rent increase can be a seamless part of a well-managed tenancy, benefiting both landlord and tenant. If you need guidance on letting or managing properties, we’re here to help at Sawyer & Co.