Can you put the rent up every year? Our advice

Can you put up the rent up every year?

It is normally stated in a letting contract that the rent will go up with the Retail Price Inflation (RPI) if you are doing a lease extension.

However, some years it can go up a great deal more than that. Other years it might not increase at all.

The biggest influence on rent increase is supply of available property for rent.

If lots of new properties to rent have just appeared next to yours, then increasing rates will be difficult.

Conversely, when the cost of buying property increases too sharply, more people stay renting and so the extra demand often feeds through into higher rents being achieved.

Bear in mind that the increase will be uneven. It is also easier to make larger increases when you change tenant.

 

With thanks to BuyAssociation.