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Rent Increase - Keeping my Tenant


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Hi All,

Could you please share tips on how to manage the rent increase process with my tenant in London? 

This is a very good tenant - low maintenance, always pays on time - and I would like to keep him. The TA has a rent increase clause (increase in line with latest published annual CPI change) so I can do it contractually but I want the whole process to be as 'pleasant' as possible (e.g. giving him an informal heads up on WA and only sending the notice once we agree).

Do you have any templates of messages you've sent to your tenants to ensure they receive the news well and stay?

Any help would be really appreciated!

Kind regards,

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I have done the same as Richlist in the past in returning a part ot their deposit. It depends on how much the increase really is going to be. I have just this month increased the rent to one of my long term tenants but only by 4.5% or around £25 a month but I do this every year really, a small % increase.

    I made a mistake many years ago by not increasing the rent for nearly 5 years on a long term tenant and it was a financial mistake to just rely on the fact they were good tenants and paid their rent on time etc. They are still with me as well.

So I guess the answer is:    Little and often.   Don't put the rent up so high (many LL do ) that the tenant is verging on bankruptcy.

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If you reach agreement with the tenant there is no need for a notice.

The 1st payment of the increased rent confirms the tenants agreement.

But I serve a less formal notice of increase annually.

It has the requirements of the section 13 notice, w/o the title.

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I agree it's difficult to know how to broach the subject of a rent increase when it's been unchanged for years and you don't want to risk losing a good tenant.

However, the general increase in rental charges (and reduced availability) has received so much press publicity that a rise is generally accepted. It also helps if you put yourself in the tenant's shoes and search online for acceptable alternatives in the same area at the existing rent.

Regarding the deposit following a rent increase, I feel it is better to keep that to the same five weeks as before, but it's open to discussion if you sense that the tenant would prefer to avoid any increase. Mine is deposited with the DPS and the small increase was easily added to the account online once received.

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I would highlight that most tenants are more worried about not having a home. I advised a tenant of a £50 a month increase, less than 5% and they told me they were expecting more and were relieved to hear I was not planning on selling. I am making slightly less after the increase but feel I can afford to share the ‘pain’ with the tenant.. A fellow landlord I know is now asking the tenants what they think they expect the rate would increase after explaining their own increased costs etc and finding the tenant is often suggesting more than they were going to propose and so when they tell them the increase they are pleasantly surprised, even if not 100% happy. 

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As long as its done like clockwork every year the tenants come to expect it even if if a small amount. You shouldn't have to justify yourself to your tenant but if you wanted to you could write something like:

Dear XXX

Unfortunately its that time of year of your annual rent review which has been calculated by using the rate of inflation and also local market rents for similar properties in the area. Therefore, your revised rent  for 2023  from xx/xx/xx  will be £xxxx pcm. Please see attached the required section 13 notice for your records and can you please amend your standing order payment.

If you would like to discuss the above please contact me on xxxxxxxxxx




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