Ask Nik: "Can I increase my tenants' rent now that the fixed term has ended?"
Question from a landlord:
Hi Nik,
The fixed-term tenancy I had with my tenants ended in February 2025 and we haven’t signed a new contract, so I assume it’s a rolling tenancy now. When they first moved in, I gave it to them at a lower rent than I ideally wanted, as they’re friends of a friend. I now want to bring it closer to market value now. How do I go about upping the rent?
Thanks,
Jennifer.
Nik’s reply:
That’s right, the tenants – officially known as “contract-holders” nowadays, but I’m sticking with “tenants” – are on what’s known as a periodic (rolling) tenancy. Rents can’t be increased during a fixed-term, but as you have a periodic tenancy, you can do so – though there are a few rules to follow.
First off, the Renting Homes (Wales) Act changed the way things work back in December 2022, so if you’re used to the old system, it’s worth being aware of the new bits.
You’ll need to give your tenants at least two months’ notice in writing before the new rent kicks in. That’s double the previous notice period, so it catches a few landlords out. The notice must be done on the correct form too — not just a quick email or a clause in a letter — otherwise, it doesn’t count. You need the RHW12 form, which is available from Welsh Government’s website. Unless your written statement (formerly known as a ‘tenancy agreement’) says you can send this electronically, you should do it in the post and retain proof of postage. Make sure you allow enough for it to land on their mat, else they could argue they didn’t get the full two months’ notice.
The new rent can start from any date as long as you’ve given enough notice, but I recommend syncing it with the date their rent is due, otherwise you’ll be dealing with awkward part-payments and standing order changes, which nobody enjoys.
Legally speaking, there’s no limit on how much the rent can be increased by, and unless it’s a tenancy that transitioned from an Assured Shorthold Tenancy to an Occupation Contract when this new Act came in on 1st December 2022, tenants can’t challenge the new amount either. I suspect Welsh Government will change this at some point, by allowing all tenants to appeal increases at the Residential Property Tribunal again. In the meantime, it’s all down to market value and common sense.
One thing to keep in mind is you can only increase the rent once a year, so if your new rent takes effect from September 2025, for example, the next one can’t take effect until September 2026. You can serve the notice sooner, but the change can’t kick in until at least a year has passed. We carry out automatic rent reviews every year for the properties we manage, so our landlords don’t need to keep tabs on this stuff themselves. It means rents stay in line with the market, and it takes the admin off their plate. We always check with them before we increase any rents, of course!
Hope this helps.
Cheers,
Nik
Director of Operations
CPS Homes
P.S. and a slight disclaimer: this isn’t legal advice – it’s just an honest, considered, best-of-my-knowledge answer.
Got a lettings question on your mind? Fire it my way. I’ll always reply privately, and I pick one each month to feature here – always anonymously.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
