Should I increase the rent and risk losing my reliable tenant?

I own a buy-to-let property in Nottingham, which I rent out furnished for £750 per month. I’ve already increased the monthly rent by £50 this year, but I still feel it’s not on par with the market rate. Considering my tenant always pays on time, is it worth risking that stability for an increase in rental income?

Jeremy, Northampton

There are two questions here: whether you can increase the rent and whether you should.

If your tenancy is within a fixed term, you can’t increase the rent unless there is a clause saying that you can. Rent review clauses are more typical in tenancies that last for longer than a single year, though.

Outside of a fixed term you can impose a rent increase only