The Rent you can Charge

If you let on an assured shorthold tenancy, where you have the absolute right to get the property back, your tenant has the right during the first fixed period of the tenancy to ask the rent assessment committee to determine a rent for the tenancy. This is an independent statutory body consisting usually of three people: a lawyer, an expert in property valuation and an ordinary lay person. The committee will only set a rate if there is evidence that you are charging significantly more than other landlords of assured shorthold tenants in your locality. The rent they determine will be a market rent.

If you let under an assured tenancy which is not an assured shorthold, you and your tenant agree the rent he will pay and you can also agree how it is to be increased. No one can interfere with the rent, or the rent review mechanism, once it has been agreed between you and your tenant - although you and your tenant can agree to a change if you both wish.

If you decide not to include in the initial agreement some means of raising the level of rent you can still do so in some circumstances. You cannot, for example seek to increase a rent for which there is no rent review mechanism for a fixed term tenancy. But you will always been able to increase your rent if the contract says that you can.