
Rent review clauses in the tenancy agreement
A rent review clause should be included in a tenancy agreement. It is an effective way to entitle the landlord to raise the rent during the fixed term of the tenancy. The clause can also be effective to increase the rent after the fixed term has ended.
The clause must comply with the provisions of the Unfair Terms in Consumer Contracts Regulations and be fair. Clauses allowing the landlord to increase the rent as he sees fit may be void – the increase could be referable to someone or something independent, such as the retail price index.
A rent review clause should be included in a tenancy agreement. It is an effective way to entitle the landlord to raise the rent during the fixed term of the tenancy. The clause can also be effective to increase the rent after the fixed term has ended.
The clause must comply with the provisions of the Unfair Terms in Consumer Contracts Regulations and be fair. Clauses allowing the landlord to increase the rent as he sees fit may be void – the increase could be referable to someone or something independent, such as the retail price index.
Note also that clauses which provide for very large increases (i.e. increases which the tenant would be unable to pay) could also be void.