How Often Can A Landlord Increase Rent in Private Residential Tenancies? Landlord’s Guide

Increasing rent in Scotland is not as straightforward as many landlords expect. A single mistake, such as using the wrong notice or increasing rent too early, can make the increase invalid and lead to disputes. For you as a landlord, rent increases are an important part of managing rising costs and keeping a rental business sustainable.

However, you cannot increase rent simply because expenses go up. Scotland’s legal framework sets clear rules on rent hikes, how prior you must give rent increase notice, how to communicate with tenants, and how tenants can respond. Understanding these rules helps you plan rental income properly, avoid legal challenges, and issues with rent collection.

In our 10+ years of experience in rental property management, we’ve seen many cases where landlords fail to increase rent due to not following the rules properly. In this article, you will learn about the rent increase process under a Private Residential Tenancy, helping you understand the rules and follow them correctly.

What Are the Rent Increase Rules in Scotland?

Rent increases in Scotland are regulated under the Private Residential Tenancy (PRT), the default tenancy agreement for most private rentals signed on or after December 1, 2017. As a landlord, you should follow some legal rules while increasing the rent in Scotland. If you fail to comply, the proposed increase is not legally valid, and your tenant is not obliged to pay the higher rent. You must follow these key rules before increasing the rent in Scotland:

• Frequency: You cannot increase rent during the first 12 months of a tenancy. After that, you can propose a rent increase once every 12 months.
• Written Notice: You must use the official Scottish Government rent increase notice form. No other form of communication, verbal, text, or email, counts as a legal notice.
• Minimum Notice Period: You must give your tenant at least three months’ written notice before the increase takes effect.
• Fair and Reasonable Increase: As explained above, the new rent must be justifiable and assessed solely by reference to open market comparables. An excessive increase can be referred to a Rent Officer for review.
• Property Compliance: It is best practice to have a valid Energy Performance Certificate (EPC) and a Gas Safety Certificate (where applicable). The property must also meet the Repairing Standard.

How Much Can Rent Be Increased?

Since the end of temporary rent controls, rent under a Private Residential Tenancy can be increased with open market rates for similar properties. In practice, this means the new rent should broadly reflect what comparable homes in the same area are charging, taking into account factors such as the number of rooms, condition, and overall features.

If a tenant believes the increase goes beyond local market levels, they can challenge a rent increase by referring it to a Government Rent Officer for review within 21 days. In response, the Rent Officer will assess the open market rent by comparing your property with similar listings in the local area to decide what level of rent is justified.

What If You Don’t Agree with Rent Officer’s Decision

If you believe the Rent Officer’s valuation does not reflect the current market or the property’s condition, you have a formal right to challenge the decision. This process is handled through the Scottish Government’s official appeals framework.

• Requesting a Review: Your first step is to ask the Rent Officer to look at the decision again. You must submit this request for a review within 14 working days of receiving their initial notification.
• Appealing to the First-tier Tribunal: If the review does not resolve the issue, you can escalate the matter to the First-tier Tribunal for Scotland (Housing and Property Chamber). This is an independent legal body that handles disputes in the private rental sector. You must lodge your appeal within 14 working days of receiving the review decision.

How to Apply to the Tribunal

You must follow these steps to apply an appeal to the tribunal:

• You need to complete Form H (Rent Assessment), which is available on the Tribunal’s official website.
• You must provide copies of the original Rent Increase Notice and the Rent Officer’s decision letter.
• There is no fee to submit an appeal to the Tribunal.

By following this statutory process, you ensure that your case is heard by an impartial panel, maintaining your rights under Scottish landlord regulations.

Practical Tips for Landlords

Rent increases work best when they are handled properly and communicated clearly. When you follow the rules and keep the relationship with your tenant in mind, the process feels far less confrontational and much easier to manage. The tips below will help you fairly increase rent while keeping the tenancy on good terms.

• Communicate Early: Discuss the upcoming increase with your tenant before serving formal notice. Explaining reasons like rising property maintenance costs or market comparisons helps foster understanding.
• Be Transparent: If the increase is based on market rates, provide examples of similar local properties to justify the new rent.
• Keep Detailed Records: Retain copies of all correspondence, the completed notice form, and proof of postage or delivery. This ensures you have evidence of compliance.
• Avoid Excessive Increases: Large or frequent increases are more likely to be challenged and can harm your reputation, potentially leading to tenant turnover or void periods.
• Justify the Increment: Ensure the increase has a clear rationale, whether it reflects local market alignment or improvements to the property, making it harder for tenants to dispute.

Conclusion

Rent increases in Scotland’s Private Residential Tenancies are governed by clear rules to ensure fairness. By following these Scotland rent increase rules carefully, you protect your rental income, maintain a professional relationship with your tenant, and ensure your property business operates within the law. Clear records and open communication are just as important as following the legal steps.

If you want expert guidance on rent increases or any property-related matters, Westport Property is here to help you navigate the rules and manage your rental business with confidence.