Rent increase according to inflation?

Rent increase according to inflation?

9:10 AM, 15th November 2023, About 6 months ago 40

Text Size

Hi, I have asked my tenant for a rent increase from £800 to £1100. But she is blaming now that there is a clause in the tenancy agreement which says that the rent will be reviewed annually and be increased according to inflation.

So this should only be £855 as the inflation rate is now 6.8% Is there anything I can do, please?

Thanks,

Tuly


Share This Article


Comments

Tuly

12:00 PM, 15th November 2023, About 6 months ago

Reply to the comment left by RoseD at 15/11/2023 - 09:55
The market rent in this road for a 3 bedroom flat is £1300 per annum.

Tuly

12:05 PM, 15th November 2023, About 6 months ago

Reply to the comment left by Jo Westlake at 15/11/2023 - 10:41
Thanks.

It does not say which inflation index.

RoseD

12:21 PM, 15th November 2023, About 6 months ago

Reply to the comment left by Tuly at 15/11/2023 - 12:00
It's irrelevant if your contract stipulates inflation increases. Also....is this rental based on hikes over last 12 months because why else would you be at £800. At the end of the day it's your call....but as stated by almost every reply this is not a professional approach and in line with bad landlord management.

James Smythe

12:38 PM, 15th November 2023, About 6 months ago

Reply to the comment left by RoseD at 15/11/2023 - 09:55
It would depend; if the landlord has been subsidising the tenant for awhile as many landlords do I fail to see what your issue is.

James Smythe

12:42 PM, 15th November 2023, About 6 months ago

Reply to the comment left by Jo Westlake at 15/11/2023 - 10:41
Technically speaking if there has been a clause for many years and the landlord has not exercised I fail to see what the issue is implementing the cumulative increase. It is mathematically correct and you should view the lower amounts in the periods before as rebates.

David Houghton

12:43 PM, 15th November 2023, About 6 months ago

I'm guessing you haven't increased the rent for a while. Sadly that's a mistake. Stick to the agreement you made and increase it every year from now on.

Graham Bowcock

13:53 PM, 15th November 2023, About 6 months ago

Reply to the comment left by James Smythe at 15/11/2023 - 12:42
How the review can be impemented will be (should be) set out in the tenancy agreement. Any advise is a guess unless you've read the agreement. I agree that there should be a starting point and end point (the review date) with the increase being implemented across those dates. However, the OP has been vague in their question.

BillyC

13:56 PM, 15th November 2023, About 6 months ago

I have been caught up in similar spots before. They are good tenants, so you don't review the rent annually.. thinking you will correct to market when they leave. If they end up staying longer term, you are faced with imposing a massive hike or continue losing out to market value.

Best practice is to simply review every year.

RoseD

14:17 PM, 15th November 2023, About 6 months ago

Reply to the comment left by James Smythe at 15/11/2023 - 12:38James, I don't have an issue and responding to what we have information on. In fact I think I've said it's the landlords call. No mention of any subsidy!

Michael Booth

14:40 PM, 15th November 2023, About 6 months ago

Suggest you have an independent fair rent assessment, a Tennant of mine did this when they complained the rent was too much , the assessment increased the rent to market rates. Ps my average rents in my properties at the time works out at £90 a week hardly call that high to be honest l havebeen in prs24 years and are leaving the whole prs it's not viable long term in my opinion.
.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now