We have a question we are about to start with a new tenancy, wich we priced lower than market rate. However I would like it to increase every year automatically by a certain amount. Is this possible with the e singnature Contract we sign on here?
Thank you
I wouldnt recommend that. Many landords have been stuck with 3% increases when their costs and local rents have increased by double digits.
thanks so basically you have answered my question. So if we did that it would only mean the 3% every year. But would it be possible to put in the contract that after 1 year the rent will increase by 50 Pound?
Just negotiate price increases in the future as necessary & inline with market prices. No need to commit both parties to a set figure or amount at the outset.
You can put any figure in the tenancy agreement, but youre then stuck with it. As Karl2 says, either just negotiate the increase with the tenant each year, or use a s13 notice to impose an increase.
Thank your -fairly new to this, second time renting the flat. To be honest as a person I would not feel comfortable to ask for more than 50 Pound increase per month (last tenancy we raised 40 pcm after two years). But just out of curiosity, are LL really raising a rent by say 200 pcm when that is how the market has gone up in the area? How would one phrase that?
And because I wouldn’t dare to raise by more than 50 pcm every year (which frankly is also quite a lot) We might as well pop that straight in the contract…no? So we don’t have the bother and quite frank hassle every year as every Tenant hates the rent increase…but if it was set out in the contract I feel it would be easier for us?
Another recommendation to follow @Karl2 advice. I’m in Scotland and rent increases are currently capped at 3% regardless of any fixed amounts / percentages / linked rates in contracts.
The contract should Set your inspection, and rent review periods in the contract, and the penalties of breaches in conditions that constitute fair termination.
The contracts I’ve seen here from OR need a lot of additional clauses added - especially for Scotland.
Rent review clauses in the contract are just too inflexible. For half of the last 7 years rents have been static in my area so there has been no annual increase at all. For the last couple of years increases have been more dramatic, although Ive kept my increases to around 5-6%, but always dependent on circumstances.
Your desire to distance yourself from the decision to increase rent and your comment about not daring to increase more than ÂŁ50 suggest a lack of confidence. You will need a more professional and robust approach if you are going to thrive in this business. I would suggest some training, which may give you the confidence to do whats necessary and to know that this is backed up by the law and best practice.
Thank your for your replies. Will follow Karl2 advise and then come back here and ask next year about the increase. Ta!
This is quite frankly absurd! You can’t do something like this…. You wonder why the government are cracking down on landlords…. This is why! You can’t just put in a contract that you will have an indefinite rent increase for ever more…. Unless you have seen into the future and know the rates and inflation etc…
Actually @Keelie , you can do just that. You can have a rent review clause that spells out the percentage of any annual rent increase. However, I don’t recommend them for the reasons I gave above.
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