Landlord and tenant should mutually agree the initial rent. During the first six months of a tenancy, tenants have rights to refer the rent to the First-Tier Tribunal (Property Chamber – Residential Property) for review if they consider the rent to be above the market rent. This is, however, very rarely done.
When considering the rent to charge a landlord should consider what repairs and other outgoings are likely to ensure there is sufficient income. This needs to be balanced with current market conditions.
3.12.1 Setting The Rent
Before the tenancy begins, landlord and tenant should mutually agree the rent, including arrangements for when to pay and review it. The details of these matters should be included clearly in the tenancy agreement. If the tenancy is for a fixed term, the rent given in the agreement will last for the whole of the fixed term unless there is a rent review clause.
3.12.2 Rent Book
A landlord is legally obliged to provide a rent book if the rent is payable on a weekly basis (failure to do so is a criminal offence.). The rent book provided must, by law, contain certain information. Standard rent books for assured and assured shorthold tenancies can be obtained from law stationers and larger general stationers. However, the landlord should also keep a record of rent payments and provide receipts for rent paid (particularly for cash payments) for all tenancies to avoid any disagreements later.