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  Brooks & Green Lettings Ltd



How to increase a tenants rent

Posted on May 3, 2014 at 1:10 PM

How to increase rent


Normally, rent is increased at the end of a fixed term, this is done by getting the tenant to sign a new tenancy agreement. However arranging a new tenancy agreement is not actually necessary (as the tenancy will roll on anyway as a periodic tenancy under the same terms and conditions – section 5 of the Housing Act 1988). However, if you want to increase the rent, doing this by giving the tenant a new tenancy agreement is the best way to do it.


If you do not want to give a new tenancy agreement, you can also get the tenant to agree the rent by signing and returning to you a copy of a letter sent regarding the increase. The fact that the tenant has signed and dated the letter will be proof that they have agreed to it.


The rent can’t normally be increased half way through a tenancy agreement unless the Tenancy Agreement has a review clause. But be careful, the clause must be fair and comply with the Unfair Terms in Consumer Contracts Regulations 1999.


One way to make a rent review clause fair is to specify what the new figure will actually be (ie say that it will increase to £X month after 4 months). This will be deemed fair as the tenant will have approved the actual amount by signing the agreement. What will not be deemed fair is a clause saying that the landlord can increase the rent to whatever he likes


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