Rent Increases on Periodic Tenancies: A Guide for Landlords

As a landlord, keeping your rental income in line with market conditions is essential.

For periodic tenancies, it's important to understand how and why to increase rent, and to follow the correct procedures to manage your investment effectively.

A periodic tenancy continues on a rolling basis after the fixed-term ends, usually month-to-month. This arrangement offers flexibility but requires regular review to ensure the rent reflects current market rates and covers rising costs. Increasing rent on periodic tenancies helps you stay competitive, offset rising expenses like maintenance, insurance, and taxes, and fund property improvements, which will inevitably keep your property in good shape and keep your tenants happy. It can also encourage turnover, which is beneficial if current tenants are paying below market rate, allowing you to attract higher-paying tenants.

Another benefit to keeping the rent in line with market conditions is that if or when you decide to sell your property, the current rental yield is accurate and attractive to prospective investors.

To legally increase rent on a periodic tenancy, you must use a Section 13 notice under the Housing Act 1988. This involves completing the prescribed form with details of the current and proposed rent, providing at least one month’s notice for monthly tenancies, and serving the notice by hand, post, or as agreed in the tenancy agreement.

Increasing rent on periodic tenancies helps you stay competitive and cover costs. Using a Section 13 notice ensures a legal, clear, and fair process. Keep your property well-maintained and your rental business thriving with regular rent reviews and adjustments. Stay compliant, stay competitive, and protect your investment!

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