We’ve been advised that we should increase the rent on our house in line with local rental prices before the new Bill makes it far more difficult to do so; currently it is £400 below. We’d appreciate any advice please on what increase is allowed and how it should be done. Many thanks.
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Whoever has given this advice has a valid point. When the new bill comes into force you will have additional compliance and costs to deal with such as the landlord database,the ombudsman scheme. And possibly licensing if you don’t already have it.The dilemma you have is how much to raise it by. £400 in one hit will be difficult for anyone to swallow. Possibly you could raise it
by £250 - £300 depending on the relationship and the length of time the tenants have been there. Best to talk to them about why you need to raise it and demonstrate that it is still under market Hopefully they will understand . And going forward raise it annually in smaller increments.
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If it gets too far behind, it can be a problem for tenants to meet any reasonable new amount, so you end up losing out on your income, and do not have as much cushion for repairs. I decided to do small but annual reviews to avoid this.
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I’ve already started doing it
Tessa Sheperson advised increase it annually because of the new bill
What does your current contract stipulate ?
Thank you; I’m going to do the same:)
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