MAKE YOUR FREE Rent Increase Notice
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What is a Rent Increase Notice?
A Rent Increase Notice is a formal letter used to increase how much rent a tenant must pay. Landlords can use Rent Increase Notices to let tenants know when their rent will be raised and how much by, whilst identifying why the landlord is legally allowed to raise the rent.
For use in England only.
When should I use a Rent Increase Notice?
Use this Rent Increase Notice:
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if you’re a landlord or a landlord’s agent
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to raise the rent paid under a residential tenancy in England only
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for an assured shorthold tenancy (AST)
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only to increase rent using a rent review clause contained within the Tenancy agreement
Sample Rent Increase Notice
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To ,
Re: Your tenancy of , , .
writing to give you notice that your rent will be increasing from .
Your current rent payments are £, payable in every . On , your rent payments will be raised so that £ is due every instead.
This represents an increase of £, i.e. %, which permitted to implement by the rent review clause contained within clause of your tenancy agreement. The text of this rent review clause is as follows:
“”
In accordance with the rent review clause, providing you with at least notice of the rent increase.
believe that the rent increase set out above is reasonable. However, if you believe that you will not be able to pay this new rent amount, please contact as soon as possible so that we can discuss your situation.
Yours sincerely,
About Rent Increase Notices
Learn more about making your Rent Increase Notice
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How to make a Rent Increase Notice
Making your Rent Increase Notice online is simple. Just answer a few questions and Rocket Lawyer will build your document for you. When you have all the information about the tenancy and the rent increase prepared in advance, creating your document is a quick and easy process.
You’ll need the following information:
The landlord, the tenant, and the property
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What is the landlord’s name?
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Is the landlord an individual, multiple individuals (ie joint landlords), a sole trader, a company, or a partnership?
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If the landlord is a company or a partnership, who is the landlord’s signatory (ie the individual signing the Notice on the landlord’s behalf)?
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Is the landlord or the landlord’s agent (eg estate agent) making and sending the Rent Increase Notice?
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If it’s an agent, what are the agent’s name, address, and contact details?
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If it’s the landlord, what are the landlord’s address and contact details?
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What is the tenant’s name? Or, if there are multiple, all of their names?
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What is the address of the property the Rent Increase Notice relates to?
Rent payments
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How much rent does the tenant currently pay?
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How regularly are rent payments made?
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Is rent paid in advance or in arrears?
The rent review clause
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What does the rent review clause say? You should set this out precisely, so ensure you have the tenancy agreement to hand.
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Which clause of the tenancy agreement is the rent review clause in?
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Does the rent review clause specify how much notice the tenant must be given of a rent increase? If so, how much notice must be given?
The rent increase
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Will the rent be increased by a specified percentage, a specified amount, in accordance with a particular index, or in another way (eg if the landlord has discretion as to how much they will raise the rent by)?
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If by a specified percentage, what percentage will the rent be increased by?
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If by a specified amount, what amount will the rent be increased by?
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If in line with a certain index:
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Which index?
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How much has this index increased within the relevant time period?
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Will the rent be increased by the same amount that the index has increased by or by less? If less, how much will the rent be increased by?
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If in another way, what amount will the rent be increased by?
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What considerations have been taken into account when deciding on the rent increase? (optional).
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When will the rent increase be effective from?
The Rent Increase Notice
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When will the Rent Increase Notice be sent?
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Common terms in a Rent Increase Notice
Rent Increase Notices set out the details of a rent increase to communicate these to a tenant. To do this, this Rent Increase Notice template includes the following terms and sections:
The letter header
The Notice is formatted as a letter, addressed from either the landlord or their agent to the tenant(s). It identifies the tenancy in question by the rental property’s address.
Identifying the agent
If the landlord’s agent is sending the Rent Increase Notice on the landlord’ s behalf, this paragraph is included to highlight this and to identify the landlord.
The purpose of the notice
Next, the Notice is identified as being sent to communicate a rent increase. The date of the increase is set out.
Rent payments
The next paragraph identifies how much rent the tenant currently pays and when, and how much they will be required to pay once the increase takes effect.
The rent increase
Next, the Notice specifies how much of a rent increase this change represents, both in pounds sterling and as a percentage of the current rent amount. If the increase is in line with an increase in an index, details about this are also set out here.
This paragraph also identifies the tenancy agreement’s rent review clause as the legal basis for the rent increase and sets out the exact text of the rent review clause.
Considerations
This paragraph sets out considerations taken into account when deciding on the rent increase, if you choose to include these. For example, you may identify a recent increase in market rent in the property’s area or an increase in consumer price inflation.
The notice period
If the rent review clause specifies a minimum amount of notice that should be given of the rent increase, this paragraph is included. It sets out how much notice is required and, therefore, is being given.
Closing statement
The Notice ends by inviting the tenant to contact the landlord or their agent if they wish to discuss the rent increase. Contact details are provided.
Signatures
Finally, space(s) are provided for the landlord(s), the agent, or the landlord’s signatory to sign the Notice.
If you want your Rent Review Notice to include further or more detailed provisions, you can edit your document. However, if you do this, you may want a lawyer to review the document for you (or to make the changes for you) to make sure that your modified Notice complies with all relevant laws and meets your specific needs. Use Rocket Lawyer’s Ask a lawyer service for assistance.
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Legal tips for landlords
Talk to your tenant before you increase their rent
Although it’s not a legal requirement, discussing an intended rent increase with a tenant before formally imposing the increase can show your respect for the tenant and help to preserve a positive landlord-tenant relationship.
This also provides an opportunity to resolve any issues before you impose an increase. For example, if the tenant informs you that they cannot afford to pay your intended rent increase but could pay a slightly smaller one, you may wish to reconsider so you don’t have to find a new tenant if your tenant subsequently ends their tenancy.
Use the correct type of rent increase
There are different ways of imposing a rent increase that can be used in different situations. If you use the wrong method for your situation, the increase may be unenforceable.
For example, the presence of a rent review clause in a tenancy agreement precludes a landlord from being able to increase rent using a section 13 notice even if they otherwise would have been able to do so. For more information, read Private renting rent increases.
Understand when to seek advice from a lawyer
In some circumstances, it’s good practice to Ask a lawyer for advice to ensure that you’re complying with the law and that you are well protected from risks. You should consider asking for advice if:
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you’re unsure whether your rent review clause is fair
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you want to change other terms of a tenancy as well as the rent
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you need help using a rent review clause in Scotland or Wales
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this Rent Increase Notice doesn’t meet your needs
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Rent Increase Notice FAQs
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What is included in a Rent Increase Notice?
This Rent Increase Notice template covers:
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the tenant’s current rent obligations
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how much the rent is being increased by
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the legal basis for the rent increase (ie identifying what the rent review clause allows the landlord to do)
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considerations taken into account when deciding to increase the rent
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how much notice is being given of the rent increase
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the landlord’s or agent’s contact details that the tenant can use to discuss any concerns
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Why do I need a Rent Increase Notice?
Inflation, housing market, and rental market growth are common. As such, it’s often appropriate for a residential landlord to increase a tenant’s rent after their tenancy agreement has started.
When a tenant’s rent can be increased and how this can be done depends on multiple factors. Different types of notices should be used in different situations, each of which have different requirements. However, a formal letter should always be used to ensure that there’s a record of the increase and how it was introduced, and to ensure that the increase and its rationale are clearly communicated to the tenant.
If you’re increasing a tenant’s rent in reliance on a rent review clause, you should use this Rent Increase Notice to communicate the increase to your tenant. This template is designed to help you abide by the rules set out in a rent review clause and to ensure that you clearly communicate all aspects of the rent increase.
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When can a landlord raise a tenant’s rent?
When a tenant’s rent can be increased and by how much depends on factors including:
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their location within the UK (Wales, Scotland, and England all have different rules)
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the type of tenancy
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the tenancy’s length
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how much of the tenancy’s fixed term has elapsed
There are more options for raising the rent during a periodic tenancy (ie a tenancy that rolls from term-to-term, like from month-to-month) than during a fixed-term tenancy. A rent review clause is often the main option for raising rent during a fixed-term tenancy.
For more information, read Private renting rent increases.
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What is a rent review clause?
A rent review clause is a clause (ie a term) in a Tenancy agreement that gives the landlord permission to raise the tenant’s rent during the tenancy in accordance with the rules set out within the rent review clause.
Rent review clauses are most common in fixed-term tenancy agreements. However, they are sometimes also found in periodic tenancy agreements. It’s important to note that a fixed-term tenancy agreement that becomes a statutory periodic tenancy agreement once the fixed term ends (this happens automatically when a fixed term ends) will not automatically contain a rent review clause, even if the original fixed-term tenancy agreement did.
A rent review clause may set out specific rules on how rent can be raised. For example, it may specify:
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how much rent can be raised by (eg as an amount, a percentage, or by reference to an index like the Consumer Price Inflation (CPI) index)
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when rent can be raised (eg after a certain period of the tenancy has elapsed)
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how regularly rent can be raised (eg once per year), and/or
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how the landlord must inform the tenant of a rent increase (eg by using a specific form of notice or by giving a certain minimum amount of notice)
Alternatively, a rent review clause may be very simple. For example, it could state that the landlord ‘may review the tenant’s rent periodically and may increase it once per year by giving the tenant notice’. As long as the clause contains a mechanism (ie method) like this for increasing rent, and it’s not considered unfair, it will likely be valid.
If you need help identifying a rent review clause in your tenancy agreement, you can Ask a lawyer.
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Can a Rent Increase Notice be addressed to multiple tenants?
This Rent Increase Notice is designed to be used to increase the entire rent due under a single tenancy agreement.
This means that, for example, if you rent a property to multiple tenants under one tenancy agreement, you can use this Notice to set out an increase to the rent that they pay altogether, regardless of how they split rent payments between themselves.
If you rent a property to multiple tenants under separate Room rental agreements (eg to various sharers), you should use a separate Rent Increase Notice to raise each tenant’s rent. Each tenant’s specific rent review clause should be used to inform their rent increase.
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Does a rent increase have to be fair?
Certain terms of a residential tenancy agreement, including rent review clauses, are required by consumer law not to be unfair. This essentially means that these terms should not create a substantial imbalance between a landlord and a tenant to the detriment of the tenant. If a term is considered unfair, it may be unenforceable (ie a rent increase imposed under it may be unenforceable).
If you’re concerned that your rent review clause may be unfair, you can Ask a lawyer for assistance.
For more information, read Doing business with consumers.
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