Please note that the information below is only applicable in England and provides general guidance based on OpenRent's contract, which is available through our Rent Now service. You can find answers to the most popular questions regarding rent increases here.
There are three main ways in which landlords can increase the rent during a tenancy:
Mutual Agreement
To increase the rent by mutual agreement you will need to contact the tenant(s) and discuss the proposed increase. Once you reach an agreement with all parties, you should ask everyone to sign a written record of:
- The new rental amount
- The date from which the new rent is payable
If you are using OpenRent's rent collection service, this can be done seamlessly online. You can see our guide here.
Alternatively, you could propose to renew the tenancy with the tenants. This would mean entering into a new fixed term contract which can be done through our renewals service.
Rent Review Clause
A Rent Review Clause is a clause which is included in the contract at the start of the fixed term. The clause should clearly state:
- When the rent will be reviewed
- How the increase will be calculated
- Whether or not the new rent will be open to negotiation
Note: As standard, OpenRent’s Rent Now contract doesn’t include a rent review clause (because different landlords have different approaches). But Rent Now landlords always have the option of adding a rent review clause to the contract, if they wish.
Serving a Section 13 Notice
Section 13 notices can be used to increase the rent in a periodic tenancy. However, it can only be used once every 12 months. If the tenancy is a contractual periodic tenancy and has a rent review clause, then the rent review clause must be used.
You will need to make sure that you give at least one month’s notice and that the increase comes into effect at the start of a rental period (the date at which rent is due each month).
A Section 13 Notice is completed using Form 4, which can be downloaded from the government’s website. Once you have filled out the form you’ll need to serve it on the tenant(s).
We have a full guide on how to propose rent increases in our Landlord Hub and you can get real-life advice from other landlords, as well as join the conversation, through our Community.
Information on this site is by way of general guidance only and may not apply in your particular circumstances. You should not act or refrain from acting upon information on this site without seeking independent legal advice.