Rent increases

Rent increases

A tenancy agreement should lay out how much the rent is, when it should be paid and how it should be paid.  Your agreement can have a rent increase clause detailing when the rent can go up and by how much.  You are entitled to increase the rent as long as you are beyond the initial stage of the lease - usually 6 months.  If you don't have a rent increase clause you can agree an increase amount and payment date with your tenant.

Short Assured Tenancy

At the end of a Short Assured Tenancy a landlord may propose a new contract with an increased rent and tenants can choose to accept these changes.   If the tenant does not want to accept the new contract and rental figure they can give the correct notice and end the tenancy.  You can also serve the correct notice and end the tenancy if you do not want to re-sign your tenants.

Assured Tenancy

If you want to increase rent in an Assured Tenancy, your tenancy agreement does not have a rent increase clause and your tenant does not want to accept the increase you can issue a form called an AT1 or a form called an AT2.

An AT1 form (PDF) (9 pages) gives tenants written notice to change the terms of the tenancy and can only be served if a valid Notice to Quit  has also been given to the tenant bringing the current tenancy agreement to an end (see our pages on ending a tenancy).   An AT2 form (PDF) (7 pages) is a written notice of the proposed rent increase.

For all tenancies you must tell tenants of a rent increase at least 1 rental period before the increase takes effect.  If your tenant thinks the rent increase is unreasonable they have the right to go to the First-tier Tribunal for Scotland.  They can fix a market rent or consider proposed changes to tenancy agreements.

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