- Landlords are legally permitted to raise rent once per year, under the new Renters’ Rights Act
- While there is no legal limit to how much they can raise rent, setting a fair price could be a better strategy
- Setting a realistic rent increase means tenants are more likely to accept, which can reduce the risk of turnover or lost rental income
It’s possible to raise rent without losing tenants by providing at least two months’ notice, setting a reasonable rate and justifying the price hike with data.
Renters have the right to reject rent increases or report unfair landlord practices, so it’s in the best interests of the landlords to set a price that’s fair and likely to be accepted.
It’s not always easy to know the right way to strategise price increases, but good tenant communication, ongoing tenant support and fair landlord practices make all the difference.
At J Property Management London, we help landlords keep their tenants happy and their property protected, supporting with everything from setting rent increases to managing 24/7 tenant support.
Contact us today to find out about our personalised property management services.
How Can Landlords Raise Rent Without Losing Tenants?
Good Communication With Tenants
It’s important to communicate clearly with tenants if you’re planning a rent increase. This communication should adhere to the minimum legal 2 months’ notice period and should also be as explanatory as possible, including explaining why you’re proposing the increase.
Generally speaking, if you have a good ongoing relationship with tenants and they feel well looked after, they’re more likely to want to continue their tenancy with you, even if there is a slight rent increase.
It can be a full-time job trying to be on call 24/7 for tenants, but it can help reduce turnover and increase long-term financial stability for landlords. For a more hands-off approach, work with a professional property management company like J Property Management so that your tenants are in good hands. Get in touch with our team to find out how we can help keep your tenants happy.
Fair Increases
When raising rent, keep to fair price increases. With new rules stating that landlords can only raise the rent once a year, it could be tempting to try to increase as much as possible; however, smaller increases may be a more successful strategy, as tenants are more likely to accept, avoiding sourcing new tenants or having to go through a tribunal.
Remember, having the same tenants stay in your property is often more cost-effective and way less time-consuming than having to source new tenants and suffer void periods.
To do this, also consider the market rate so that you know you’re setting a price which is fair and realistic. If you’re unsure how much rent to charge, use our free rent valuation tool to help.
Justification For Rent Increase
Increasing the rent should always come with some kind of justification so that your tenants know you’re not just increasing the price for the sake of it. You could present market data to show that prices in the area have gone up or provide evidence of increased operating costs, mortgage rates or inflation.
Offer More
Raising the rent while continuing to offer the same level of service may not be a very appealing offer for tenants. Instead, you could present any property improvements you’re planning to make or have made in the past year, such as any repairs, upgrades to appliances, new boilers or any redecoration.
If you’re working with a property management company, you can offer your tenants a better level of service and promise them 24/7 support as well as regular property inspections so that they have total peace of mind. All of this can help them feel well looked after and more likely to accept a rent increase.
Contact us today to explore property management solutions!
Be Open To Negotiation
Tenants have the right to negotiate rent increases, so be open to a discussion about what’s a fair price to pay. Being willing to listen to your tenants and explore different prices with them can help maintain a good relationship and protect long-term financial stability.
How Can Landlords Raise Rent Legally?
In the UK, landlords can legally raise rent once a year. While there are no limits to how much they can raise, there are certain rules to follow.
From May 1, 2026, and the addition of the Renters’ Rights Act, landlords are only able to increase rent through a Section 13 notice and only once per year. Landlords also cannot increase the rent until 12 months after tenants have been living there.
To legally raise the rent, landlords must provide at least 2 months’ notice. During this time, the tenant could request to negotiate the rent increase through the tribunal. Tenants cannot be evicted for challenging a rent increase, and if their negotiation case is successful, the tenant and landlord will need to agree on a rate.
The terms for raising rent should be outlined in the landlord agreement so that both tenants and landlords have a clear understanding of the protocol regarding rent increases.
How Much Can Landlords Raise Rent Without Losing Tenants?
There is no legal limit to how much landlords can raise rent; however, it’s a fine balancing act. If they raise it too high, they could risk losing tenants or having to face a tribunal to challenge the rent increase.
It’s wise for a landlord to set a fair price which is likely to be accepted by tenants. Not only does it save them the time and hassle of having to find new tenants, it also helps provide long-term financial stability.
Raise Rent & Secure Tenants With J Property Management
Increasing rent is a good strategy for making a higher rental yield and getting the most out of your investment property, but it’s only a good strategy if your tenants agree.
That’s where we come in. We can help you look after your tenants all year round so that they’re less likely to want to look elsewhere. From helping you set a fair and profitable rent price to managing communication with tenants, we’ve got your back when it comes to raising rent and preserving your financial stability.
Whether you just need a bit of extra support, full property management services or support with an entire property portfolio, we can help.
Contact us today to get started.
