0:01 AM, 20th June 2023, About 9 months ago 4
Hello, like thousands of others, the monthly interest payments on my one and only rental property have more than doubled since this time last year, and regrettably, I feel I now need to pass some of this cost on to my tenants via a rent increase. They are now paying well below the market rate for comparable properties in the area.
However, it’s unclear to me 15 months into a 24-month AST, whether I can actually do this? In some places I’ve read no, absolutely not, until it lapses into a periodic tenancy. In other places I’ve read yes, but the tenant must be in agreement. If that’s true, I’m slightly baffled as to why any tenant would agree to a rent increase if they didn’t have to. How would it be in their interest to agree to a rent increase? The only thing I can think of is to say I may need to sell up if they don’t agree, but that is not true – at least not yet – so it feels dishonest and manipulative.
I also have a good relationship with my tenants, so I don’t want to jeopardise that by attempting to do something I ultimately cannot do and look like I’m trying to pull a fast one.
I’d be really grateful for advice on this. Can I increase the rent and how should I go about it?
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