Rent increases are a normal part of property letting, but they must be handled with care and precision. Whether you’re responding to rising costs or adjusting to market rates, there’s a right way—and a wrong way—to raise the rent.

First, review the tenancy agreement. For fixed-term tenancies, rent can only be increased if the agreement includes a rent review clause. Without one, you’ll need to wait until the fixed term ends unless the tenant agrees in writing. For periodic (rolling) tenancies, landlords can propose an increase once a year using a formal notice.

Before making changes, always consider the local rental market. Compare similar properties in the area to ensure your new rate is fair and justifiable. An unrealistic jump in rent could drive good tenants away or lead to disputes.

Communication is key. Give tenants plenty of notice in writing, explaining the reason behind the increase and when it will take effect. Transparency helps avoid misunderstandings and shows that you’re acting reasonably.

In England, the formal route for increasing rent in a periodic tenancy is by serving a Section 13 notice. This must provide at least one month’s notice and outline the new amount and the date it starts. If the tenant disagrees, they can refer the matter to a tribunal for review.

Above all, strike a balance between business needs and tenant satisfaction. Regular, modest increases are often better received than sudden, steep hikes. A fair and transparent approach maintains goodwill and helps retain reliable tenants.

Handled correctly, a rent increase doesn’t have to be contentious—it can simply be part of a well-managed tenancy that benefits both landlord and tenant. Partner with us at Sawyer & Co, and we can help streamline the entire property management process, ensuring a smooth and efficient experience for you and your tenants.