Many landlords have been extremely generous around rent reviews with their tenants, particularly when they have good people renting their property, because stability and peace of mind are so highly prized.

However, the rent review process will come with greater implications once the Renters' Rights Act takes effect, so it's wise to know what that could mean for you and your business.

From May 1st, rent reviews will change forever, so if you're currently charging less than the full market rate - and many landlords haven't increased the rent for years - this article is for you.

With that in mind, let’s explore:

Why you need to review the rent now

How profitable landlords create more rental homes

Covering the costs of upcoming EPC changes

The way to conduct respectful rent reviews

The window for traditional reviews is closing soon to make way for the new era, so if you want your rental property to remain a sustainable investment, read on.

WHY YOU NEED TO REVIEW THE RENT NOW

On May 1st, every tenancy, both new and existing, will be covered by new rules for rent reviews as the Renter's Rights Act kicks in, with strict limits on how rent can be increased.

Rent review clauses in tenancy agreements will be banned, existing clauses will become void, and all increases will need to use the statutory Section 13 notice, or they’ll be deemed invalid.

Tenants will be able to appeal any increase, during which time the rent will stay the same until the appeal is heard, which may take months.

Even if the tribunal finds in your favour, the increase will only take effect from the date of the decision. It won’t be backdated, and the increase could be deferred in cases of tenant hardship.

The clock is ticking because the transition to the new tribunal-led appeals process won't be a slow fade; it’s a hard deadline that changes the math of landlording overnight.

PROFITABLE LANDLORDS CREATE MORE RENTAL HOMES

The more profitable a rental home is, the more likely the landlord is to keep it, which ensures more rental homes in the market. This is good news for tenants as it mitigates spiralling rents.

Aligning your property with current market values ensures you have the capital to remain a provider of high-quality housing.

When rents take a dip, tenants often shop around or see if they can negotiate a reduction in their existing rent: the market works both ways, so don’t be afraid of reviews.

New landlords with modern strategies are proving that buy-to-let is an excellent long-term investment that also pays for itself month by month.

The demand for rental homes in the Wilton and Salisbury area is consistently strong and, along with rental values, only likely to increase, so being a landlord is still a good way to build wealth for future financial security.

COVERING THE COSTS OF UPCOMING EPC CHANGES

With tighter rules around maintenance and energy efficiency on the horizon, it’s important that your rental income reflects your extra investment and rewards your spend.

All successful businesses invest in their future, and they recoup that money through more sales or higher value products, otherwise there would be no point in carrying on.

Being a landlord is no different - investing in your property by making it more efficient and attractive is the way to keep it performing, occupied and profitable.

All tenancies will need to reach an EPC Grade C by 1st October 2030, with an investment cap set at £10,000. Any improvements made from October 2025 onwards will count towards this total.

To make the most of the time until the deadline, conducting annual rent reviews will help you build a cash reserve to meet the higher energy efficiency targets.

CONDUCTING RESPECTFUL RENT REVIEWS

Although no tenant looks forward to their rent going up, the vast majority understand that as the market rises and costs increase, their monthly rent is unlikely to remain static.

However, mishandled rent reviews can turn long-term tenants into departing ones overnight, so it’s wise to put some thought into how you present them to get the best result.

Include some recent nearby examples of rents achieved for similar homes - concrete data shows that you are simply following the market.

Use any recent improvements or planned upgrades to highlight the lifestyle benefits to your tenant around comfort and modernity.
Add a personal touch to the rent review: as well as serving the statutory notice, thank your tenant for looking after your property and paying their rent on time.

Combining these measures shows your tenant that you’ve thought carefully about your rent review and that you’re being reasonable, which instantly reduces the chance of friction.

Where are you at with rent reviews?

We understand exactly how to ensure rent reviews go the right way, to keep the best tenants happily in place while keeping your investment profitable and viable.

Whether it’s time your property caught up with the market or you’re simply unfamiliar with conducting rent reviews, call us on 01722 580059 or email us at info@piccoloproperty.co.uk to see how we can help.