Raising rent

[kanrent]

Hi can anyone advise me

I would like to know if there is any legal restrictions on how much i can raise my tenants rent ?

he is on a periodic tenancy and i havent raised the rent in 5 years i was proposing a rent rise of 8.50% if i do this he will still be paying under the market value, i have been a bit lapse lately and know i should have put up the rent in smaller amounts more often

also how much notice do i have to give him 

Thanks for any help

[Grampa]

Google section 13 notice

[Melboy]

As stated by Grampa you must use and submit to Tenant a section 13 notice of rent increases.

As far as I know there is no real upper limit that stops you from increasing the rent however the problem does arise as to whether the tenant would want to stay in your property.

Any large increase may tip them over the edge and of course you have to be sure that they can actually afford to pay the rent you are asking.

[Richlist]

Personally I never apply rent increases higher than 5% per year. I find a 5% rise is not considered unreasonable and if it's not quite enough I can always apply another increase in 12 months time.

For longer term tenants I always ensure that any rent increase ensures they are still below the average market rents for the same property in the same area.

It's sometimes worth explaining to your tenant that they have enjoyed a discounted rent for the past 5 years and therefore saved considerably on that which you could have charged them. Go on to explain that even with the increase the rent is still below the market level.

[Mortitia]

If you up the rent too much then tenant might give notice and leave - that might not bother you Kanrent?  You could then re-let at correct value.

I find yearly increases best by just a small amount but you might be best going at this over 2 years to bring the rent up to current values in your area and keep the current tenant.

[Melboy]

I am about to raise the rent on a long term 1st class tenant for the 3rd time in 3 years having not done so for the first 5 years of their occupation.

Looking back it was probably a mistake not to have raised the rent during that period but I am aware that a good tenant is like gold dust and void periods are the landlord's curse along with many other things.

The property is still rented well below market value but small increases every April will bring the rental income up. I would hate to lose them as a tenant because it is more than just the fact if they leave you have this void periods but a good tenant who looks after your property as their home is to be valued.