Public Sector v. PRS annual rent increases
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Natalya
Natalya
1 Thanks
23 Posts
11 years ago
0
I haven't come across this kind of information myself when I tried to do research in the past. Public sector will always be cheaper for many reasons, I wouldn't use public sector info as a guide as it is very different to PRS. There are two key things you need to consider when increasing rent

1 - Will the increase make your rent uncompetitive, it is important that your rent does not go over what similar properties on the market in your area are letting for. If it's within market rent it's reasonable.

2 - It's useful to use a system that is understandable to the tenant. I increase my rents annually in line with the latest CPI index, aka inflation, it's fair and justifiable as you're increasing rent in line with how everyday costs are increasing. The tenant also knows what to expect each year.

But I do make sure that the rent does not go above market rent, therefore if the tenant is already paying this then they won't get an increase, or it would be a smaller increase to meet market levels.

Don't forget to follow correct procedure for increasing rents, if you don't have a clear clause in your AST for annual rent increases then you need to use a specific form to do so. It's available on this website I believe.

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