Have you been served a rent review notice?
When you initially take on a rental property the chances are that you will look to sign onto a term lease, this ensures that you will stay locked to the property for a certain amount of time and that your rent will remain the same throughout this period of time. Once this period has finished, then the landlord may choose to increase your rent, depending on the financial climate and the current property situation – and if this incurs then you may be served a rent review notice.
In general, your landlord must give you plenty of notice before they look to increase your rent and this is generally a minimum of two months before the rental increase takes place. In addition, the rental increase must be kept within a reasonable amount and there are often limits put in place which restrict how much your landlord can increase the rent by on an annual basis.
What is a reasonable rent increase?
In general many landlords will look to increase their rent significantly when they choose to issue a rent increase and this could be annually or once every couple of years depending on the market. If the rental market is good then a landlord could look to capitalise on this by increasing the rent regularly. If the rental market is bad then a landlord may be concerned that a tenant will leave their property vacant and they may choose to hold their rental price until the market starts to pick up momentum again.
What can do about a rent increase?
If you feel that you have been served an unfair rent increase then it’s important that you respond to the letter immediately as in many situations there is a deadline for any opposition to a rent increase of this type. Once your letter has been received the landlord may choose to reconsider their rent increase, or they may come to agreement with you over a different figure. If at this time you are still unhappy with the figure then you may choose to take proceedings further.
At Roger Hannah & Co our lease advisory team can support you through a rent review with specialist knowledge of the legislation and also the current market conditions and comparable leases.
Contact Mark Keirl on 0161 817 3300 or see our Lease Advisory Page.