Is Increasing The Rent A Good Move?

There’s no doubt about it, rents in the UK are booming. From flats to rent in London to south west properties, landlords and estate agents are finding that the demand for rentals allows an almost unprecedented price increase. It may seem like good news, but for landlords with current tenants, the situation represents a difficult decision. As all landlords should know, a rent increase is more difficult during a current tenancy. It must be done either by agreement with the tenants, use of the rent increase clause in the lease or serving a notice of increase. While the small amount of inconvenience may seem worth it in the long term, a rental increase in the middle of a lease can prompt major disagreements.

These disagreements aren’t small ones, and they don’t involve just the rent increase itself. Tenants who feel that their rent has been unfairly increased may start looking at their property with a new eye, spotting the flaws they’ve previously overlooked. Owners who increase rents often find themselves reinvesting the money into their properties as tenants demand better service.

An owner has the right to increase the rent of their property to reflect the market. It’s only fair to be paid as much as the landlord next door. There are, however, non-financial benefits to leaving the rent as is, even in a rental boom. If the present tenants are troublesome, the decision to increase the rent should be easy. If, however, the current tenants are good tenants, upping the rent can be a risk.