Dealing with renewals, rent increases and disputes
Manage lease renewals, rent changes, and disputes effectively
If the current tenancy is coming to the end of a fixed term, you can either renew it for another fixed period or simply allow it to become periodic – i.e. ‘rolling’ from one rent period to the next.
A periodic agreement gives the tenant more flexibility if they want or need to move, but a fixed term gives you the peace of mind that they’re committed to pay rent for a certain period - usually six or 12 months - and gives them the assurance that you can’t evict them via a Section 21 during that time.
Because you need to formally bring the tenancy to an end by issuing a Section 21 notice if you want the tenant to leave at the end of a fixed term, you need to discuss this with them at least two months ahead of time.
And if you want them to stay on, it’s advisable to find out their plans as early as possible, so you can agree whether to renew the agreement or have time to look for a new tenant if necessary.
At the same time, you need to think about rent increases. It’s common for landlords to increase the rent annually – and advisable, to make sure you maintain profits – which may coincide with a tenancy renewal.
Annually
Bi-annually
Only when necessary
Any increase must be fair and there should be a clause in every agreement that specifies when and by how much the rent will go up so it doesn’t come as a surprise to the tenant.
For more on how to legally increase rent, see our separate article.
Having a good relationship with your tenant and communicating with them about any changes well ahead of time should make sure things go smoothly.
However, if you need any support, it may be worth joining an organisation such as the NRLA that can provide you with advice and document templates.
Occasionally, no matter how clearly things are laid out in the tenancy agreement, you may have to negotiate with a tenant – whether that’s during the tenancy or at the end if you’re making a claim against their deposit.
The better your relationship with your tenant, the less likely you are to end up in a negotiation or dispute, but you still need to be prepared to explain responsibilities and obligations, and negotiate with them if necessary.
If you’re an HMO landlord renting properties by the room, you’re also likely to have to deal with disputes between your tenants – something that’s to be expected when you have multiple unrelated people sharing the same house.
If you’ve had a good relationship with your tenant(s) up to that point, you may be able to work things out between you.
However, if that’s not possible, then it’s worth exploring mediation, such as via the Property Redress Scheme Tenancy Mediation Service, which offers impartial advice and can help you find a resolution.
In the case of any dispute, it’s important to remember that you are not allowed to harass your tenant (see the section above: ‘Respect your tenant’s privacy’). And make sure you record everything clearly in writing, in case things escalate and you end up in court.
