Pricing has two different moments: choosing an asking rent for a new letting and proposing a change during an existing tenancy. This guide shows how to gather comparables and then use the appropriate increase process.
Build an evidence-based rent
Location, size and condition
Several current comparisons
Form 4A and two months notice
Research the open market rent
Compare homes with a similar location, size, condition, energy rating, parking and furnishings. Use several current examples and record the date because advertised rents can change quickly. An agent valuation can add useful local evidence.
- Same neighbourhood or travel area
- Similar number and size of rooms
- Comparable condition and features
- Current evidence rather than old adverts
Advertise one clear asking rent
State a specific rent in every written advert or offer. Landlords and agents must not invite, encourage or accept an offer above the advertised rent. Make clear which bills or services are included so applicants can compare the full cost.
Use the correct rent increase process
For an assured periodic tenancy in England, rent can normally be increased once a year and not during the first year of a new tenancy. Use Form 4A and give the tenant at least two months notice before the new rent starts.
Prepare for questions or a tribunal review
Discuss the proposal with the tenant and keep the comparable evidence used. A tenant can ask the First-tier Tribunal to decide the open market rent. Do not treat a rent increase as a way to make a tenant leave.
