How often can a landlord increase rent?

Usually, landlords are able to increase rent on an annual basis. Rental increases are necessary when leasing out a property as a landlord because you’ll need to ensure that you’re keeping up with inflation or the cost of living. 

But, it’s important that you also take into account the needs of your tenants and be fair when considering rental increases and how much to increase rent by. Here, we’ll look at how often a landlord can increase rent.   

H2: Why you would want to increase your rental income

There are a few reasons why you  would need to increase your rent, for example: 

• Keeping up with the market and the prices of properties similar to yours
• To cover costs associated with maintaining your property, like maintenance and repairs, tax, insurance premiums, mortgage payments and inflation
• To reflect any improvements or renovations you may have made to your property
• To generate a higher return on your investment

H2: When can a landlord increase rent?

Now, you may be wondering how often you can increase rent, and the answer is different for either type of tenancy agreement you may have with your tenants. 

H3: Periodic tenancy

A periodic tenancy means that there is a rolling tenancy agreement in place and can either be a week-by-week or month-to-month tenancy. With this kind of agreement, you’re unable to increase rent more than once a year. 

H3: Fixed-term tenancy

A fixed tenancy agreement runs for a specific period of time and means that you can only increase the rent amount if your tenant agrees to it. If your tenant does not agree to this, then you’ll only be able to increase the rent amount once the fixed tenancy period runs out. 

If you’re looking to increase the rental amount by more than previously agreed to, you’ll need to get permission first.  Also, as previously mentioned, you need to ensure that your rental increase amount is fair. 

H2: How to propose a rental increase

Be sure to implement any rental increases in alignment with any procedures stated in the tenancy agreement. If the tenancy agreement does not set out a specific procedure for this, you could propose a rental increase in the following ways: 

• Renew the tenancy agreement at the end of the fixed term with the new rental price included in the agreement 
• Agree on a rental increase with your tenant along with a signed written record of the conversation discussing the increase
• You can use a ‘Landlord’s notice proposing a new rent’ form, which increases the rent after the fixed term has ended

You may also be wondering how much you can increase your rent by, and there is no hard and fast rule regarding this, but you do have a responsibility as a landlord to ensure that you’re fair when proposing rent increases, taking into account your tenant’s budget.  

H3: Section 13 rent increase notice

You can also use a Section 13 rent increase notice to inform your tenants that you’re considering increasing the rental price. 

This can be used in both a periodic tenancy and a fixed-term tenancy. You could first write to your tenant and ask them if they agree to the rental increase, and once you have their agreement, you can send the  Section 13 rent increase notice to them. 

It’s important to note that you cannot serve a Section 13 rent increase notice within the first year of the tenancy agreement with a new tenant. 

Here’s what to include in the Section 13 notice: 

• The new amount of rent you want your tenant to pay
• The start date of  the new rental amount
• The procedure your tenant cant take if they don’t agree to the new rent increase

H4: Notice period 

You need to give your tenants sufficient notice to your tenants of the rent increase. 

• If rent is due weekly or monthly you should give one month’s notice
• If rent is due quarterly you should give three months’ notice
• If rent is due annually, you should give six months’ notice

H2: Factors to consider for rent increases

To make sure that you’re getting a reasonable amount for your rent increase, you should take into consideration a few external factors, too.

H3: Local rent market

Any changes in the local rental market will most likely affect your property portfolio. You need to make sure that you’re always keeping up with the rental market by setting competitive and fair prices. Take a look at the average rent prices for properties that are similar to yours to see what other landlords are charging. 

Also, keep in mind the neighbourhood demand along with the overall economic conditions when considering rent increases as these play a massive role in determining how much you should be charging for rent. 

H3: Inflation rates

Inflation rates are another important factor to take into consideration when deciding on increasing rent because they affect the cost of living, including the operational costs involved with maintaining your property. So, by taking inflation into consideration, you’ll ensure that you can keep up with these costs. 

Also, you’ll ensure that you maintain the value of your property while ensuring that your rent price is fair to your tenants. This way, you’ll also provide your tenants with sound reasoning for the increase in rent.  

H3: Condition of property

You’ll have no sound reasoning for rent increases if your property is not well maintained or in great condition. You need to carefully evaluate the condition of your property before implementing any rental increases. 

So,  if your property has undergone any recent upgrades you’ll be well within your rights to suggest an increase in rent because the living experience of your tenants will be improved. 

If you’re looking for the best landlord insurance deals, be sure to get in touch with our team of experts at CIA Landlords on 01788 818 670.