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Can landlords increase rent?

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A. In the case of fixed-term tenancies, landlords cannot increase rents unless there is a mutual agreement with the tenant. Alternatively, they must wait until the rental term expires which is why it is so important to have a professionally drawn up contract that lets both parties know where they stand, what their responsibilities are and where they can seek redress.

Landlords are entitled to include a rent review clause in the agreement indicating when the proposed increase will occur and also how much notice will be given. There must also be a clear projection of how the increase will be calculated, based on factors such as inflation, average area prices and property size. All increases must be reasonable and subject to agreement between the landlord and the tenant.

The tenancy agreement may not have such a clause and in this case the landlord may activate something called a Section 13 notice. This procedure can only be used once a year and requires at least one month’s notice which increases to six if the tenancy is for over a year. As always, it pays to carefully read through your tenancy agreement before signing and, if possible, to seek expert advice.

If you are renting through ARLA Propertymark lettings agent, then you will have access to a readily available source of information and your agent will guide you what is a reasonable rent increase. They will also be able to ensure that everything is documented professionally between you and the landlord.

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Marc von Grundherr

About the Author

Marc has been a director at Benham and Reeves since 2001 and works closely with Managing Director Anita Mehra in the growth of the company in all areas from investments to sales to rentals and tax. You may have seen Marc within the UK and international media on a regular basis where he is now the property expert of choice for multiple news organisations including the BBC, Bloomberg, Reuters, The Times, Telegraph, Financial Times, News UK and more. His analysis in always well-informed and topical and delivered with a professionalism and passion that news producers seem to like. He is never short of an opinion on the property market. Marc is also an experienced panellist and webinar host especially when curating subjects such as property investing and the economics of housing domestically and overseas. He leverages his long-term investor contact-book well and is always happy to provide advice and insight to would be property speculators.

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