Want to increase the rent?
If you want to increase your tenant's rent, you must follow the correct procedure. It depends on what sort of tenancy agreement your tenant has.
If the tenancy is for a specific time
If the tenancy is for a specific time like six months - this is called a 'fixed term' - (most new tenancies will be like this): you can't increase the rent during that period, unless the tenancy agreement specifically says it can be reviewed at regular intervals.
If you want the tenant to stay after the end of the fixed term, you will usually either:
- create another new tenancy that runs for a fixed term (six months for example); or
- allow the tenancy to become a 'statutory periodic' tenancy that runs indefinitely
If you start a new fixed term tenancy you must give the tenant a new tenancy agreement. It could differ from the original agreement - you could set a higher rent for example.
But if you allow the tenancy to continue as a 'statutory periodic' tenancy there won't be a new agreement - the conditions will be the same as in the original. The rent would automatically stay the same - unless you go through a formal procedure, using a special form to propose a new rent. The proposed increase must happen within a year of the original 'fixed term' agreement ending.
If the tenancy runs indefinitely
If the tenancy runs indefinitely the tenancy agreement should say how often the rent can be reviewed and how it will be increased ('by inflation' for example). If the tenancy agreement doesn't say when the rent can go up, you can propose a rent rise to the tenant. Any agreement must be in writing. Or you can use a formal procedure, using a special form to propose a new rent and a date it will start. You must not do this until the tenancy is at least a year old, and you must give your tenant at least a month's notice in writing.
If the tenant disagrees with the rent
If your tenant doesn't agree with the rent (because it's much higher than for similar properties nearby for example) they can ask an independent organisation called the 'rent assessment committee' to make a ruling.
The committee decides what you could reasonably charge if you were to advertise the property to a new tenant. It can agree with your rent, or decide that the rent should be lower or higher. There is no appeal against the decision.
The Manchester Committee is at:
1st floor, 26 York Street, Manchester, M1 4JB
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