Could You Evidence Your Rent Increase If It Was Challenged?

Increasing the rent used to feel fairly straightforward.

Look at the local market, decide on a reasonable figure, speak to the tenant and deal with the paperwork.

That still sounds simple enough.

But under the current rent-increase process in England, landlords need to think more carefully about one question:

Could you actually evidence the rent you are proposing?

Because if your tenant challenges the increase, the First-tier Tribunal will look at the open market rent for that particular property.

And that is where good evidence matters.

The highest rent online isn’t necessarily the market rent

Property portals are useful.

They can give you a quick indication of what other landlords and agents are currently asking locally.

But one expensive listing does not automatically prove that your property should achieve the same rent.

A useful comparison needs to take account of the property itself.

That might include:

• location

• property type

• number and size of bedrooms

• condition

• presentation

• parking

• outside space

• age and specification

• whether furnishings or appliances are included

Two three-bedroom homes half a mile apart can sit at quite different rental values.

The important thing is being able to explain why your proposed rent is reasonable for your property.

Condition matters too

A rent review should not happen in isolation from the condition of the property.

If there are outstanding repairs, damp, dated facilities or other issues affecting the accommodation, these may influence what the property could realistically achieve on the open market.

That is another reason we prefer a proper rental review rather than simply saying:

“Properties around here are advertised at £X.”

The individual property matters.

What are the current rules?

For assured periodic tenancies in England, landlords must now use the statutory rent-increase process.

A rent can normally only be increased once in a 12-month period and cannot be increased during the first year of a new tenancy.

The landlord must use Form 4A and give the tenant at least two months’ notice of the proposed new rent.

If the tenant believes the proposed figure is higher than the open market rent, they can ask the First-tier Tribunal to determine the appropriate market rent.

That means the figure needs to be more than simply a guess.

What evidence should a landlord keep?

If you are reviewing the rent, build the evidence at the same time.

Keep details of genuinely comparable properties and record why you believe they are relevant.

For example:

Property A
Similar size and property type, same local area, comparable condition.

Property B
Similar bedroom count and specification, but with slightly better parking.

Property C
Similar location and size, although more recently modernised.

That explanation can be just as useful as the headline rent figure.

It shows that you have actually considered the market rather than simply selecting the highest advertised rent you could find.

Don’t wait until a challenge arrives

This is probably the biggest practical point.

Trying to assemble your evidence after a tenant has challenged an increase puts you immediately on the back foot.

It is much easier to:

Review the market.
Gather the comparables.
Consider the property condition.
Then decide on the rent.

That way, if the figure is ever questioned, you already understand how you arrived at it.

As Lisa Bailey of Personal Economy Lettings explains:

“Rent reviews should be evidence-led. It isn’t about finding the highest number online - it’s about being able to show why the proposed rent is appropriate for that particular property.”

What about a good long-term tenant?

Market rent is only part of the landlord’s decision.

A reliable tenant who looks after the property, communicates well and pays consistently has value too.

Knowing what the property could achieve does not mean you automatically have to increase the rent to that figure.

It simply gives you better information on which to base your decision.

Sometimes a landlord may decide that retaining an excellent tenant at slightly below the top of the market is the right commercial decision.

The important thing is that it is an informed decision.

Where Personal Economy Lettings can help

This is one of the areas where self-managing landlords can benefit from professional support without handing over full management.

At Personal Economy Lettings, we monitor local rents across our landlord services and can help landlords review where their property sits in the current market.

We can help with:

• local rental comparables

• reviewing the individual property

• supporting evidence for a proposed rent

• the correct rent-increase process

• ongoing rent monitoring

You remain in control of the final decision.

We provide the information and practical support around you.

Could you evidence your current rent?

It is a useful question even if you are not planning an increase today.

When was the rent last reviewed?

How does it compare with genuinely similar local properties?

Has the condition or specification of the property changed?

And if somebody asked you why your property was worth that figure, could you show them?

If you are not completely sure, ask us about our Complimentary Rental MOT.

We can take a straightforward look at your property, current rent and local market position and help you understand where things stand.

Personal Economy Lettings

0117 9856703
personaleconomylettings.co.uk

Helping landlords stay confidently in control.