Many landlords are in the fortunate position that for the first time in several years they can contemplate increasing their rent.The procedures for raising the rent on your buy-to-let property will depend in part on the type of tenancy agreement that is in place.
In the case of a fixed term tenancy you will just need to wait for the fixed term to expire and then you can grant the existing tenant a new tenancy at the higher rent.
Periodic tenancy - where a fixed term has expired
A landlord must give at least a month’s notice of the proposed increase if the rent is paid on a weekly or monthly basis (more if the rent period is longer). If the tenant agrees with the proposed rent increase, he or she should simply pay it from the date given in the notice. It is important for landlord to note that the date on which the new rent is required must not be earlier than a year after the date when the rent was last increased using a section 13 notice. If a new tenancy is in place then the date should not be any earlier than a year after the date when the tenancy started.
The rent increase must begin on the same day of the month that the tenancy started. For example, if the rent for the tenancy is due on the 28th of every month then the new increased rent should also be due on the 28th of the month.
Where a periodic tenancy is in place then the landlord will need to go through the procedures set out in section 13 of the Housing Act.
For more details see this recent article
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Rents should be reviewed and raised annually, where applicable. Tenants should always be contacted first and the raise discussed before it is put in place.
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