Last Updated March 26, 2024
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What is a Rent Increase Notice?
A Rent Increase Notice, also known as a rent increase letter, is a formal letter a landlord writes to inform their tenant that rent will be going up on a specific date.
Using this letter fulfils a landlord’s legal responsibility to provide tenants with notice of any changes in their rent, which allows them to prepare financially or decide to move.
LawDepot’s Rent Increase Notice template allows you to create a notice for residential or commercial rental increases.
A Rent Increase Notice is also known as:
- Notice of variation
- Rent increase letter
- Rent review notice
What is a section 13 notice?
Section 13 of the Housing Act 1988 allows landlords to increase rent on periodic assured or assured shorthold tenancies. When a rental increase occurs, it’s known as a section 13 notice. Section 13 applies to England and Wales, although almost all residential tenancies in Wales are occupation contracts rather than assured tenancies.
Landlords can’t provide a section 13 notice in either of the following situations:
- A rent increase has already been agreed upon with a rent review clause
- The tenant is in the fixed-term period of the tenancy
Even with Section 13 notices, landlords must give the notice designated in the original tenancy agreement.
LawDepot’s customisable Rent Increase Notice can apply to a section 13 notice if you have a periodic assured or assured shorthold agreement.
How to write a Rent Increase Notice
LawDepot’s Rent Increase Notice questionnaire helps you create your notice in minutes. First, choose the type of property you are leasing and its location (i.e., country). Then, provide the following:
- Tenancy type, such as a fixed term or periodic tenancy
- Rent details include the current and new rental rates, the date the new rate goes into effect, and the frequency of payments
- The rental property’s address
- Landlord and tenant details, including names, contact information, and addresses
- Signing details of when the notice will be signed and if the landlord or landlord’s agent will sign
To better help manage your rental, you can customise LawDepot’s Rent Increase Notice for fixed-term and periodic tenancy agreements.
How much notice should a landlord give for a rent increase?
The amount of notice a landlord must give their tenants varies on the tenancy agreement and jurisdiction laws. For most residential tenancies, the following requirements are in place for rent increase notices:
| Country |
Rential Increase Notice period |
| England |
Landlords must give a minimum of one month’s notice (if rent is weekly or monthly). If there is a yearly tenancy, they must give six months’ notice. |
|
Wales
|
Landlords must give a minimum of two months’ notice. |
| Scotland |
Landlords must give a minimum of three months’ notice. |
| Northern Ireland |
Landlords must give three months’ notice for properties not subject to rent control. |
For your commercial property, look to the original lease agreement for any rent review clauses stating the notice for a rent increase. Typically, the notice period is one month’s notice for a weekly or monthly payment rental, but it may be up to three months.
How much can a landlord increase rent?
In England, Wales, Scotland and most of Northern Ireland, residential tenancies have no set cap on how much a landlord can increase the rent. However, it must be reasonable based on the open market value and Scotland's tenants can challenge some rent increases.
There are no set caps for how much commercial rental prices can increase. Increases based on the open market value or the rental price index are customary for commercial landlords.
Always check your country’s tenancy laws and your original lease agreement for guidance on rental increases.
When can a landlord increase rent?
The times a landlord can increase the rent depends on the type of tenancy agreement in place and the country of residence. The regulations in:
- England and Wales: Landlords can only increase the rent once a year for periodic tenancies and at the end of a fixed-term tenancy.
- Scotland: Rent for private residential tenancies can be increased once every twelve months, but for assured and short-term tenants, it can be at the end of the fixed term.
- Northern Ireland: Landlords can increase rent at the end of a fixed-term tenancy that is being renewed, and rent cannot be raised more than once in a twelve-month period.
A rent review will determine when a landlord can introduce a rent increase during a tenancy for commercial rental properties. Alternatively, it can take place during the lease renewal.
Delivering a Rent Increase Notice
As a landlord, you have options when delivering a Rent Increase Notice. If you decide to hand-deliver your notice, it’s recommended that a third party who is objective to both parties is present.
A more trackable option is to send your notice via signed, tracked mail. This way, you’re notified when it’s delivered, and tenants need to sign for it as proof of delivery. Landlords using this delivery method will need to account for the delivery time for the letter to arrive to the tenant with the correct notice period.
