Setting the correct rent for your investment property is essential for every landlord. With ongoing changes in legislation, rising costs, and evolving tenant expectations, understanding when and how to raise rent is critical to maintaining a profitable and sustainable rental property.
So, should you consider raising the rent in 2025?
Annual Rent Review: A Necessary Step
At Property Indeed, we recommend landlords review their rents annually. This consistent approach ensures your rental income remains aligned with current market conditions and helps cover the increasing costs associated with property ownership and management.
Tenants generally anticipate rent increases over time, as living costs naturally rise year-on-year. Incremental annual adjustments are typically more palatable for tenants than sporadic, larger hikes, which can feel unexpected and burdensome.
The Renters’ Rights Bill and Its Impact
Another compelling reason to review your rent levels now is the upcoming Renters’ Rights Bill, expected to become law shortly. Under this legislation, landlords will be restricted to raising rents only once per year, limited to current market rates. Furthermore, landlords will need to provide tenants with at least two months’ notice of any rent increase.
The new law will also ban rental bidding wars, where tenants previously could offer more than the advertised rent to secure a property. This underscores the importance of setting your rent at the correct level initially to avoid financial shortfalls or tenant dissatisfaction.
When Raising Rent Could Be Detrimental
While regular rent reviews are advisable, there are situations when raising the rent might not be beneficial. If your property’s rent is already at or above local market rates, an additional increase may prompt tenants to leave, potentially resulting in longer vacancy periods and lost income as you seek new tenants willing to meet the higher rent.
Determining the Correct Rent Level
Deciding the right rental amount shouldn’t be a guessing game. Engaging with local rental market experts is vital for accurate pricing.
As your local experts in Bristol and the surrounding area, Property Indeed has in-depth knowledge of the rental market. We understand local pricing trends and tenant expectations and can advise you on an optimal rent level that strikes the right balance between profitability and tenant retention.
Professional Guidance from Property Indeed
If you’re uncertain whether 2025 is the right year to raise your rent, our team at Property Indeed is ready to help. With professional advice and comprehensive local market insights, we can ensure you set a fair and profitable rent that aligns with current regulations and tenant expectations.
Contact Property Indeed today for personalised advice on setting the perfect rent for your Bristol property. We’re here to help you make informed decisions that benefit both you and your tenants.
