Are two rent increases within a year possible?

by Readers Question

13:37 PM, 2nd July 2020
About a month ago

Are two rent increases within a year possible?

Make Text Bigger
Are two rent increases within a year possible?

I increased a rent of a few of my flats in March (pre covid nightmare!) but still to UNDER the LHA rate. Since then the LHA rate has been raised significantly, so can I raise the rent again still under the capped rate?

I questioned this with RLA precisely due to the fact this is an unusual situation as at the time I had no idea the government would raise the rate to.

Essentially I as a landlord raised the rent first for my own economic reasons – a rent review was necessary and the rent had not risen for many years before. But, if the then the benefit provider subsequently raises the limit, surely I am ‘allowed/entitled’ to raise it again to be in line with the cap?

So is it possible to raise the rent twice in the same year?

Do I need to complete another S13 and given another months notice, or can I say it is an amendment to the previous one in light of the current situation?

Answers anyone?

Reluctant



Comments

michael@mjproperty.co.uk

15:01 PM, 2nd July 2020
About a month ago

Is there an economic reason for a further increase?

WP

16:10 PM, 2nd July 2020
About a month ago

Reply to the comment left by at 02/07/2020 - 15:01
first rent rise to take account of no rise for four years and rise in cost of building insurance. Second rise in regard to a rise in LHA - I could get £75 a months more, so yes economic for me, but not at my direct request. Is this reason enough to be able to increase again to match the LHA?

Martin Roberts

9:54 AM, 3rd July 2020
About a month ago

If you have a good tenant I wouldn't be looking to anoy them.

Has the raise cost you anything?

WP

9:56 AM, 3rd July 2020
About a month ago

Reply to the comment left by Martin Roberts at 03/07/2020 - 09:54
they are all benefit tenants so it wont make a single difference to them, none are capped and I have direct payments set up. Just wondering about the legalities of it that's all, and if the DWP can refuse it ?

Alison King

10:20 AM, 3rd July 2020
About a month ago

The point of the LHA rate is to help tenants on benefits to be able to afford a decent home. It isn't a benchmark for what we should be charging or an opportunity to wring as much out of the system as possible. People who dislike landlords pounce on practices like that as examples of profiteering and it brings us all into disrepute. I think if the authorities suspect that they may well challenge it.

Nigel Travers-Griffin

10:27 AM, 3rd July 2020
About a month ago

You'll find the answer to your query here:

https://www.gov.uk/private-renting/rent-increases

Art Dobson

11:40 AM, 3rd July 2020
About a month ago

I'd be very weary to make any increase, it's hard enough dealing with DWP without being labeled one of "those landlords".

Art Dobson

11:41 AM, 3rd July 2020
About a month ago

Reply to the comment left by WP at 03/07/2020 - 09:56
It isn't very patriotic in a time of national crisis. Then again you need to eat!
Weigh things up and let your conscience be your guide.

Clint

11:49 AM, 3rd July 2020
About a month ago

I don't see any problem with that if the tenant accepts it and clearly understands that s/he will not have to pay any more from their own benefits and you make it clear to the tenant that you are only raising it to the LHA rate which is the rate set by the Government.
The rates went up on 1st April and since you put the rent up in March it would appear that you are being greedy.
The tenant could object to it as, you are only allowed legally to increase rents once a year. If they object then you will have to wait a year before increasing it.
I would suggest that in future you increase the rent from 1st April if you are to and want to keep your rents at the LHA rate.

WP

14:43 PM, 3rd July 2020
About a month ago

Reply to the comment left by Clint at 03/07/2020 - 11:49
Agree, being new to this I'm learning...possible rent increases from now on will be in May 🙂

1 2 3

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Housing Market recovery not expected to continue beyond Stamp Duty holiday

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More