Forum spotlight: Can my agent tell me how to set my rent?

This month a landlord posted on our forum asking whether their agent can tell them at what level to set their rent. 

The tenant had been paying a slightly reduced rent of £800 a month for a two-bedroomed cottage in the Cotswolds. The landlord wanted to increase the rent in line with market rates, but was told by their agent that they could only increase it by £64. They wanted to know whether this was correct. 

They were also considering moving to holiday lets and wondered if it was worth it. 

One landlord got in contact to say the agent was wrong in telling them they would need to limit any increase, but said the landlord should think about their target market and ask themselves would they be willing to accept a slightly lower rent for a long-term reliable tenant. 

They also warned that while holiday lettings may be attractive financially there is a lot more work involved.  

Another landlord got in touch to ask whether there was a rent review clause in the tenancy agreement. If so, this would probably specify the amount by which the rent can increase, which may account for the agent's advice. 

At this point an NRLA adviser joined the thread. They agreed that if there was a rent review clause in the agreement it could limit any rent increases. 

However if the tenancy was periodic, and there was no rent review clause, they could serve a Section 13 notice, which would mean there was no limit on the increase.  

That said the adviser stressed the association would always recommend any increase be fair and reasonable and that if a tenant considered an increase unreasonable they could ask a rent tribunal to make a decision.  

The landlord said they would go back to their agent to find out about any potential rent review clause.  

You can read the full thread here.