Rent increase
Once a year, on the anniversary of the agreement, the rent is usually increased in line with an index. The formula is: new rent = current rent x the new index for the agreement’s reference quarter / the index for the same quarter a year earlier.
When a tenancy agreement is signed, the latest published index — the reference quarter and its value — is written into the agreement. On the date set for the increase, you use the newly published index for that same reference quarter.
Increase the rent with Rentila
To increase the rent, follow these steps:
- Go to the “Tools” section and select “Rent increase”, or use the actions on the right in the “Tenancies” section.
- Select the tenancy whose rent you want to increase.
- Enter the year of the last increase and the starting index (the quarter selected by default is the one from the date the agreement was signed).
- Enter the new index.
- Check the new rent amount.
- Tick the box to notify the tenant by email.
- Click “Continue” to check and confirm the increase (a letter template is generated).
- Click “Save”. The new rent is recorded on the tenancy record.
The increase takes effect immediately, and the new rent applies from the next rent due date.
You can cancel an increase if you need to. You also have a rent increase letter template to send to the tenant.
To change the rent because of a mistake, or for any other reason, go to the “Tenancies” section and click the “Edit” action to adjust the tenancy details and correct the rent amount.
Important!
A rent increase does not change the rent history in the database. Rents already generated have to be edited by hand, one at a time, from the “Finance” section.
Increase the rent automatically
You can switch automatic rent increases on from the tenancy record. If you do, an increase is applied the day before the anniversary of the tenancy agreement, or the anniversary of the last increase applied.
The software does not notify the tenant, which leaves you time to check the increase and send it yourself, either as a message or by signed-for post.
Important!
An automatic rent increase does not send the tenant any notification.
Remember to tell the tenant yourself — as the circumstances and your obligations require — by email, text message or signed-for post.
Increase history
You can look through the increases already applied in the “Tools” section, under “Rent increase”. Select the tenancy to show its history. Each line gives you two options: one to cancel the increase, and one to show the increase letter to send to the tenant.
Cancel an increase
You can cancel an increase in the “Tools” section, under “Rent increase”. Select the tenancy to show its history, then click the “Cancel” link. The rent goes back to its previous value on the tenancy.
Important!
Rents already generated at the increased amount have to be edited by hand in the “Finance” section.
Change the rent by hand
To increase the rent by hand, follow these steps: go to the “Tenancies” section, click the “Edit” action, adjust the rent amount, then click “Save”.
The increase takes effect immediately, and the new rent applies from the next rent due date.
Exceptional rent increase
The rent can exceptionally be increased during the tenancy where the landlord and the tenant have agreed, when signing the agreement or later, to improvement works that the landlord will carry out at their own expense. A clause in the agreement (or a variation to it) has to set the increase, which then applies once the works are finished.
Increase at the end of the agreement
When an agreement that has reached its end date is renewed, the rent can be increased at that point, subject to the conditions that apply to the agreement.
