Contract and rental increase

I wonder if anyone could kindly offer some advice.

My tenants moved in 10 months ago and we signed the standard Open Rent contract for a 6 month period. As the 6 month period has elapsed, a new periodic tenancy agreement has taken over. I am keen to looking to increase the rent, especially as the current rent is about 20% below the average for rental in the area. My questions are ;-

  1. am I able to increase the rent by say 10% in line with current inflation which will still be below the average rent for the area
  2. I do currently have a guarantor so do I need to advise the guarantor …assuming the tenants agree to the increase
  3. if the tenants do not agree to the increase do I serve a section 13?
  4. as the open rent contract has moved from fixed term to periodic …how much notice do I need to give them?. I cannot see these details on the standard Open Rent contract

I do really appreciate any help

Many thanks


  1. As a general rule a LL should not raise rents more than once a year so you are well within your rights to give a months notice of the rent increase for it to take effect on the 13 month. In today’s climate of double digit inflation, it is reasonable to expect some LLs will raise rents by the same amount, especially as in your case the increase would still be below the market rate for the area.

  2. Yes

  3. If the reason for the guarantor was affordability the tenant may genuinely not be able to afford the rent increase unless their circumstances have changed for the better in the last year. The tenant should be able to manage their rent under normal circumstances and the guarantor should only be called on in unforseen circumstances like job loss or illness. You can also negotiate with the tenant the rent increase. Sometimes it pays to take a little less and have a good tenant in your property. If you intend to go down the eviction route, I would have thought it would be a S21 no fault eviction although I suggest you get professional advice.

  4. Standard terms of a tenancy agreement in the periodic phase is one month’s notice for both landlord and tenant.

:point_up:I totally misread point 3 above. S13 is a rent increase notice and not an eviction notice. My advice would be to discuss level of increase to hopefully get an agreement and then formally serve the S13 notice.

You can, of course propose a rent increase to the tenant, but if they disagree, then you would have to wait until a year has elapsed before you could impose an increase via a s13 notice. That is unless the contract includes a rent review clause, in which case you follow that.

Really appreciate the replies so far……thank you

i advise a rent increase annually., i quote inflation or RPI as the primary justifying factor
the second factor is the surrounding market rate which can be significant as more LL’s exit the market and prices get hiked as last year. just review say rightmove prices and pin at 90% of the average
the third factor is if you have significantly improved/extended the facility making it more desirable. i dont mean just rep[lacing a bathroom
i have never had an issue if just say you appreciate them as a tenant and keep their rent below market rates so you dont get turnover. give them the price increase in good time and be prepared to discuss or compromise
we rarely get void times of even one day.
When you look at rightmove the agents often put on places at high rents and they sit empty for a month or two so better to have the places occupied and sit below market rates. changeovers just burn a hole in your time

You should just email them first and say that by the end of the 12 month period you intend to increase the rent to £x. The more notice you give people the better but it doesn’t need to be too long. Send the email and ask them to think about it and get back to you by the end of the month. The initial anger will often subside within 2-3 weeks, although does depend on the tenant of course. Then after this 2-3 week period ask them for their formal response, and it may be that they give you notice that they will leave. Or that they will pay the increase. Only if you exhaust this conversation do you need to be thinking about serving notices on anyone. You don’t need to involve guarantor at this stage.

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