Rent Increase With Rpi
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FAQ
Many landlords require a 'compound' RPI rent review on a five-yearly basis. This means that the rent is reviewed to the figure that would be achieved had the rent been reviewed annually on an indexed basis throughout that five year period and applying a cap and collar to the calculation for each year.
The retail price index is published monthly by the Office of National Statistics and keeps track of the change in the cost of a representative sample of retail goods and services.
For the RPI, the price ratio for the basket each month is calculated relative to the previous January. Then the value of the index is obtained by multiplying the value of the index for the previous January by this price ratio.
What to include in a rent increase letter Date of the rent increase letter. Name and information of the tenant and landlord. Property address and unit number (if applicable). Reference to the expiration date of the existing lease. Current rent amount. Amount of rent increase. Date the rent increase will go into effect.