If you are renting a property, you may be contacted by the Letting agent or landlord regarding a rental increase. Rental increases are generally every 12 months depending on the type of rental agreement you have. Something to be aware of is that all rental increases are negotiable, and an agreement must be made between the landlord and agent.
Rent increases are extremely common and most tenants should be made aware of a rent increase and shown where it is stated in their tenancy agreements. The question surrounding a rent increase is; by how much?
At Hammond Properties we include a clause in our tenancy agreements advising tenants the terms of a rental increase. We calculate a rent increase by using RPI (Retail Price Index). We feel this method allows for a reasonable increase against market price for the landlord and protects tenants from unfair extortionate rental increases. We always advise our landlords that a rent increase may be easier to accept if their properties are kept updated and improvements are actioned.
On occasion when a property hasn’t been updated or had any improvements, sometimes a rental increase isn’t the best option and could potentially put the tenant off renewing their contract.
If you have a property and would like to negotiate a rental increase and require some advice or assistance, please contact our office.