How to Increase Rent Mid-Tenancy

# How to Increase Rent Mid-Tenancy

Rent reviews are a normal part of running a portfolio, but raising rent on a sitting tenant is one of the most tightly regulated areas of residential lettings. Get the route wrong and the increase is unenforceable.

The four routes

1. Mutual written agreement — anytime, any amount, with consent.
2. A rent review clause in the tenancy — only on the dates and using the formula specified.
3. At renewal — when the fixed term ends and you grant a new fixed-term agreement at higher rent.
4. Section 13 notice — for statutory periodic tenancies, using prescribed Form 4.

Route 1: Mutual agreement

You and the tenant agree a new rent, both sign a short variation letter. No prescribed form, no tribunal route. Default to this route for any good tenant.

Route 2: Rent review clause

Must be clearly worded (vague clauses unenforceable), follow notice and calculation method. Survives into periodic if wording allows.

Route 3: Increase at renewal

Offer a new fixed-term AST at higher rent. The tenant accepts, declines and leaves, or holds over into statutory periodic at the existing rent.

Route 4: Section 13 notice

Strict rules:

• Use prescribed Form 4.
• At least one month''s notice.
• Effective on the first day of a rental period.
• Cannot use again within 52 weeks.
• Must be a genuine market rent.

Tenant can refer to the First-tier Tribunal (Property Chamber) before the increase takes effect. Tribunal sets rent based on comparable evidence.

Common Section 13 failures

• Old form version.
• Effective date not on first day of rental period.
• Less than one month''s notice.
• Second Section 13 within 52 weeks.
• Rent above market — invites tribunal referral.

How much to increase by

Evidence with three or more comparable lettings. A 5–8% rise is generally easier to justify than a sudden jump after years of no increase.

What the Renters'' Rights Act changes

• All tenancies become periodic.
• Section 13 only — rent review clauses unenforceable.
• One increase per 12 months.
• Two months'' notice minimum.
• Open market rent only.

Practical playbook

1. Diary the review 3 months ahead.
2. Pull comparable rents.
3. Offer in a friendly letter first.
4. If declined and tenancy is periodic, serve Section 13 by the book.
5. Keep comparable evidence on file.

Common mistakes

• Assuming you can raise rent at any time during fixed term.
• Skipping Form 4.
• Using Section 13 within 52 weeks of the last.
• Mid-month effective date.
• Demanding back-dated arrears at the new rate.

Bottom line

For a good tenant you want to keep, written agreement is the right tool. For a sitting periodic tenant who will not engage, Section 13 done by the book is the answer.