Setting Rent Levels
There are no rules about setting a rent level for your property however you should bear in mind other rent levels in the area to ensure you do not price yourself out of the market. It may also be worth considering local housing allowance (housing benefit) rates as the rates may determine its affordability to a tenant. More information can be found by visiting the Ceredigion Housing Options page.
Landlords and tenants should agree what the rent amount and payment arrangements will be, and how and when the rent will be reviewed. This information should be included in the tenancy agreement.
If the tenancy agreement runs for a set period of six months or more (fixed-term), the agreement should say that rent will either be:
- fixed for the length of the term
- reviewed at regular intervals - and include information on how it will be reviewed
Landlords can only increase the rent of a fixed-term tenancy if the tenant agrees. If they do not agree, it can only be increased when the fixed-term ends.
If the tenancy is a periodic tenancy (rolling on a month-by-month basis) the agreement should say how often the rent will be reviewed. Both parties can agree a rent increase for a periodic tenancy at any time and should confirm the increase in writing. You should include a clause in the agreement that allows a yearly increase in rent. Landlords cannot normally increase the rent more than once a year without the tenant's agreement.
If you let a property, you will usually be charged Income Tax on the rent you receive. The amount of tax you have to pay is determined by how much profit you earn and what your other income is less your personal tax allowance.
If you rent out a room in your home you may fall under the 'Rent a Room' scheme, which allows you to earn up to £4250 tax free.
For detailed information you should speak to an accountant or visit HM Revenue and Customs.
Assistance with Renovations
Ceredigion County Council have various schemes that can assist, by way of a loan or grant, with energy efficiency measures, repair and renovations, bringing empty properties back into use or disabled adaptations. For more information you can visit the financial assistance pages.