Rent increases are a normal part of owning rental property, especially as costs go up and market conditions shift. But raising the rent needs to be done carefully - especially if you want to keep a good tenant.

The lease renewal stage is the most natural time to review the rent. It's when you’re already updating terms, and both parties are focused on what comes next.

For landlords in Battersea, our guide walks you through how to raise the rent during a renewal fairly, legally, and with the least risk to your income or tenant relationships.

Why Raise Rent at Renewal Time?

If your tenants’ rent is ready for a review, a lease renewal offers the ideal opportunity to do it. You’re already setting out new terms, which gives you the chance to look at whether the current rent still matches the market, covers your costs, or reflects any improvements made to the property. Tenants also expect that a new agreement might come with updated terms, so introducing a fair rent increase at this point tends to feel more natural, and less confrontational, than mid-tenancy. Raising rent at the point of renewal allows you to:

• Keep your rental income in line with current market rates.
• Factor in any increases in maintenance or operational costs.
• Communicate changes clearly as part of a fresh agreement.
• Avoid disrupting tenants’ mid-contract.

This approach keeps your income protected while also maintaining a good relationship with your tenant.

Stay Within the Law

It’s crucial you remember that any rent change must follow UK legal guidelines. Currently, the legal requirements for rent increases remain tied to the tenancy type and how the change is introduced. For most landlords, this will mean working within the rules of Assured Shorthold Tenancies (ASTs), which are still the standard for residential lets.

To remain compliant:

• Always include the new rent figure in the updated tenancy agreement.
• Give your tenant written notice of the new terms, ideally at least two months before the new agreement begins.
• Make sure the increase is in line with market values and not excessive.
• If the rent increase affects the deposit cap (usually five weeks’ rent), ensure you adjust the protected deposit amount correctly and reissue the prescribed information if required.

Laws around rent increases and tenancy agreements can change, so it’s wise to get advice from a letting agent in Battersea like our team at Your Home Managed if you’re unsure of the current rules.

Steps to Raise Rent Without Losing a Good Tenant

Raising rent doesn’t have to mean losing your tenant. With a bit of planning and a fair approach, many tenants will accept a modest increase, especially if it’s explained clearly and delivered at the right time. Here, we break down the key steps to take when reviewing rent during a lease renewal.

1.Know Your Market

Understanding what similar properties are renting for in Battersea is your first step. If you're asking for more than the going rate, you're likely to get pushback - or even lose the tenant. If you’re under market value, you have a stronger case for an increase.

Research should include:

• Current listings for similar properties nearby.
• Recent let-agreed prices (if available).
• The features and condition of comparable homes.
• The overall demand for rental property in Battersea.

The more confident you are in your pricing, the easier it is to explain your reasoning to the tenant.

2. Give Clear, Advance Notice

No one likes a surprise - especially when it affects their budget! That’s why it’s important to give plenty of notice before proposing any rent increase. Generally, you should aim to start the conversation around three months before the tenancy is due to expire. This gives your tenant time to think about it, ask questions, or make alternative plans if needed.

Providing proper notice also helps:

• Ensure legal compliance.
• Show professionalism.
• Reduce the chance of misunderstandings or last-minute negotiations.

Always confirm any changes in writing, even if you discuss them informally first.

3. Be Transparent About Why You’re Increasing Rent

Tenants are far more likely to accept a rent increase if they understand the reasoning behind it. Avoid vague justifications, just be clear and honest. You don’t need to go into too much detail, but a short explanation helps frame the request as fair.

Valid reasons for a rent increase might include:

• A rise in running or maintenance costs.
• Inflation or market shifts in Battersea.
• Upgrades to the property (new appliances, redecoration, etc.)
• Rent still being below the local average for similar homes.

Being open builds trust and shows that you’re managing the property responsibly.

4. Keep It Reasonable

It’s tempting to try and maximise rent, especially with rising costs, but large, sudden increases can drive your tenants away. If your current tenant pays on time, looks after the property, and is easy to deal with, those benefits may outweigh the extra income you could get from starting over with someone new.

When considering how much to raise the rent:

• Stick within the range of 3–7% per year unless there’s a compelling reason for more.
• If proposing a larger increase, back it up with evidence or upgrades
• Consider offering incentives (e.g., upgraded appliances, flexible terms) if the increase is above average.

Your goal should be to keep good tenants happy, while still protecting your rental income.

5. Offer Options and Stay Open to Discussion

Even if your proposed increase is fair, some tenants may be hesitant, but offering flexibility can make the conversation easier. For example, you could suggest a slightly smaller increase in exchange for a longer tenancy commitment. Or offer to phase in the increase over a few months.

A little bit of negotiation shows that you value the tenant and want to find a solution that works for both sides. If you'd rather keep a buffer between yourself and the conversation, a property management company or letting agent in Battersea can help manage the process professionally.

When a Rent Increase Might Not Be the Right Move

Sometimes, the best decision is to keep the rent as it is - especially if you already have a reliable, long-term tenant and the market isn’t particularly strong. The short-term gain of a few extra pounds each month could be outweighed by the cost of finding and onboarding a new tenant.

Reasons to hold off on a rent increase might include:

• The tenant has been in the property for several years with no issues.
• Local demand for rentals is soft, making it harder to re-let.
• You’ve recently had a void period and want to avoid another.
• You’re happy with the current arrangement and prefer stability over extra income.
  It’s always worth weighing up the potential costs of re-letting – that’s advertising, referencing, admin and void periods - against the modest extra rent you might receive.

Finally

Raising rent at the point of lease renewal is a practical way to ensure your property remains profitable. But it must be handled with care. Start early, know the local market, give proper notice, and be clear about your reasons. Most tenants are willing to accept a fair and reasonable increase, especially if they’re happy living in the property. Handled well, a rent increase can strengthen - not damage - your landlord-tenant relationship.

If you'd like help with rent reviews, tenant communication, or managing lease renewals, Your Home Managed is here to support landlords in Battersea.

Call us on 0208 125 7780 or email info@yourhomemanaged.com  to find out more.

In the meantime, we’ve answered some of your common questions about raising rent.

FAQs

Can I raise the rent mid-tenancy instead of waiting for renewal?

Yes, though it’s usually easier at renewal. Mid-tenancy increases require specific clauses in the agreement or a formal notice, and tenants may be less receptive if they’re not expecting it.

How much can I legally increase the rent by?

There’s no strict limit, but the increase must be fair, reflect the local market, and follow legal notice rules. If it feels unreasonable to the tenant, they can challenge it.

What happens if the tenant refuses the new rent?

If an agreement can’t be reached, the tenant may decide to leave when the current tenancy ends. You’ll then need to choose between re-letting or negotiating further.

Do I need to update the deposit if the rent goes up?

Yes, if the increase means the deposit doesn't meet the legal limit (usually five weeks’ rent). You’ll need to top it up and reissue the required documentation.