How Often Should Landlords Increase Rent? My Advice for Glasgow Landlords
By Jack Hellier
While enjoying this uncharacteristically long Glaswegian summer(!), many of our landlords, as is typical for this time of year, have been making the most of the better weather to carry out work on their properties. Whether it’s giving it a fresh lick of paint, upgrading or replacing a kitchen or bathroom, or just carrying out general maintenance between tenancies, these summer months are often a good opportunity to invest in a property.
Once they’ve finished the work, the next question is usually: “Should I put the rent up?”
It’s something I’m asked regularly by landlords, and there are a few things I always encourage them to consider before making a decision.
Review the Rent Every Year
The Glasgow rental market can change quickly. Demand, supply, mortgage costs and changes to legislation all influence rental values, and what’s considered market rent today may be quite different in twelve months’ time.
Summer is also one of the busiest periods in the rental market, particularly across Glasgow’s West End, as students, graduates and professionals prepare to move here before autumn. It’s often a good time to look at how your property compares with others coming onto the market.
My advice is to review the rent once a year. An annual review allows you to keep an eye on local rental values without feeling that you have to increase the rent every year.
What Does Scottish Rent Increase Legislation Say?
In Scotland, for a private residential tenancy, legally the rent can only be increased once in a 12-month period, and tenants must be given at least three months’ notice of the increase. At the time of writing, there’s no cap on how much you can increase rent by (although this may not always be accepted by the tenant): my advice is to consider several factors before choosing a figure.
Reviewing the Rent Doesn’t Always Mean Increasing It
There may also be good reasons to leave the rent as it is, for example if the market has remained fairly stable or your tenant has looked after the property well and always pays on time. Just because you decide to review the rent doesn’t always mean you should increase it.
I often remind landlords that it’s important not to underestimate the value of having a reliable tenant who intends to stay in a property for several years. A small rent increase may not always outweigh the cost and disruption of finding a new tenant if they decide to leave.
Essentially, it’s about looking at the bigger, longer-term picture rather than focusing purely on achieving the highest monthly rent.
Don’t Leave It Too Long
On the other hand, there will be landlords who haven’t reviewed the rent for several years.
While this usually comes from wanting to be fair to their tenant, it can sometimes leave the rent significantly below the current market level. And when the gap becomes too large, any future increase can feel much more difficult for both the landlord and tenant.
So, bear in mind that considered increases over time are often easier for tenants to manage than one substantial increase after several years.
Will Home Improvements Mean Higher Rent?
One misconception I sometimes come across is that because money has been spent on the property, the rent should increase by the same amount.
While improvements such as fitting new carpets or modernising a kitchen or bathroom can absolutely make a property more attractive, ultimately the rent should still reflect what similar properties are achieving in the local market.
It’s important to review comparable properties rather than basing your decision solely on how much you’ve invested.
Why the Local Market Matters
As I mentioned earlier, rental values can change quickly in Glasgow, particularly in the West End. And of course, when demand outpaces supply, values can rise surprisingly quickly.
That doesn’t mean every property should automatically achieve a higher rent, but it does mean it’s worth understanding what similar homes are currently letting for before making a decision.
Every Property Is Different
Having said this, whenever I’m advising a landlord about rent, I’m looking at more than just average rental figures.
I’ll consider things like:
- What similar properties are currently achieving
- The condition of the property
- Whether any work has been carried out on the property
- How long the tenant has lived there
- Whether they’ve consistently paid their rent on time and looked after the property
- Demand for that type of property in the local area
Looking at all of these factors together usually leads to a much better decision than simply increasing the rent by a fixed percentage each year.
My Advice to Glasgow Landlords
My advice to landlords is this: review your rent every year and only increase it when there’s a genuine reason to do so.
A considered approach is usually better than increasing the rent automatically every twelve months, and it’s definitely better than leaving it unchanged for years before making a substantial increase.
Looking for Rent Advice?
At Yates Hellier, we specialise in helping landlords to buy, let and manage rental property across Glasgow. Ultimately, our job is to help landlords achieve the right rent for their property while securing and retaining good tenants. If you’re unsure whether your property’s rent is in line with today’s local market and would like to chat this through, we’d be happy to advise you.
You can contact our lettings team on 0141 248 8726, or by filling out the form below.