Raising the rent is often necessary to keep up with market rates and increasing costs, but a sudden hike can drive good tenants away. The key is balancing affordability with fair market value while maintaining positive tenant relationships.
Here’s how to do it the right way.
1. Research the Market First
Before increasing rent, check what similar properties in your area are charging. If your rent is already on the higher end, an increase may push tenants to look elsewhere.
✔ Use property portals like Rightmove, Zoopla, and OpenRent to compare rental prices.
✔ Speak to local letting agents for insights on demand and trends.
2. Justify the Increase
Tenants are more likely to accept an increase if they understand why. Be transparent and provide a valid reason, such as:
- Rising maintenance costs or service charges
- Increased council tax or utility rates (if included in rent)
- A below-market rent that needs adjusting
- Recent property improvements
3. Offer Value Alongside the Rent Increase
If tenants feel they’re getting something extra, they’re more likely to stay. Consider small improvements such as:
✔ Fresh paint or minor refurbishments
✔ Upgraded appliances
✔ Faster Wi-Fi (if included in the rent)
A small investment can justify the increase and keep tenants happy.
4. Give Plenty of Notice
Legally, landlords must give at least one month’s notice for periodic tenancies and adhere to the terms in a fixed-term contract. However, it’s best to notify tenants at least 2-3 months in advance to allow for discussion and avoid surprises.
5. Offer Flexible Options
If tenants are concerned about the increase, consider offering:
✔ A gradual increase (e.g., £25 now, £25 in six months)
✔ A longer fixed-term contract to lock in the current rate
✔ The option to pay in advance for a discounted rate
6. Communicate Clearly and Respectfully
The way you frame the conversation is key. Instead of saying:
🚫 “Your rent is increasing by £100 next month.”
Try:
✅ “We’ve reviewed the market, and to continue maintaining the property and covering rising costs, we’ll be increasing the rent slightly. We value you as tenants, so we’d like to discuss the best way to move forward together.”
Tenants appreciate fairness, and a well-communicated increase is less likely to result in a vacancy.