If your tenant is unhappy with your proposed increase then we recommend that you try to compromise, if possible. Here are some tips on how to negotiate your rent increase:
- Give as much notice as possible
- Try to review the rent regularly - tenants are likely to respond better to small regular rent increases than they are to a sudden substantial increase
- Make sure any proposed rental amount is in line with the rental market in your area - tenants are unlikely to agree to a proposed increase which makes their tenancy more expensive than comparable properties. You can look at the rental market in your area here
- See if there are incentives which will help your tenant(s) agree to the proposed increase e.g. will they agree if the fridge is replaced or if the living room is repainted etc.
- Make sure you listen to the tenants’ arguments about why they are unhappy with the proposed rent increase - are there outstanding repairs in the property or are they facing other financial challenges. Listening to the other side makes it more likely that you can find a way forward.
- Be clear about why you are asking for the rent increase - if you’ve incurred costs additional costs then explain that to the tenant(s) so they don’t feel the increase is pure profit
Remember that if you are unable to reach an agreement with your tenant(s) they can choose to make an appeal to the Residential property tribunal.
If the dispute goes to a tribunal then the tribunal will ask for submissions from both the landlord(s) and tenant(s). They will also take into account a number of other factors such as the state of the property as well as the rental value of equivalent properties. A tribunal ruling is normally final (unless successfully challenged on a point of law).
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.