Rent increase for tenant in situ?
12:07 AM, 5th December 2024, 1 year ago
13
Hi, I’m about to complete on a property that comes with a tenant-in-situ who has a periodic tenancy with the existing owner.
His current rent is significantly under market rate and as part of my offer on the property, the current tenant agreed for the rent to be immediately increased to market rate.
Am I able to simply apply the new rental amount within the new tenancy agreement or do I need to issue a Section 13 rent increase and provide 2 months’ notice?
Thanks,
Russ
Tags:
Landlord responsibilities, market rent, new tenancy agreement, periodic tenancy, property purchase, rent adjustments, Rent increase, rent notice, rental agreement, section 13 rent increase, tenant in situ, Tenant rights
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
or
Member Since June 2014 - Comments: 1564
8:29 AM, 5th December 2024, About 1 year ago
If you need to ask this then you shouldn’t be buying a property with a tenant in situ.
Member Since May 2024 - Comments: 4
9:48 AM, 5th December 2024, About 1 year ago
Draw up the new tenancy and get the tenant to sign it. If they have agreed I don’t see what the issue is.
Member Since May 2022 - Comments: 108
10:24 AM, 5th December 2024, About 1 year ago
Reply to the comment left by Monty Bodkin at 05/12/2024 – 08:29
I’m surprised that your mortgage provider allows this. But you haven’t said you buying with cash!
Member Since August 2019 - Comments: 66
10:34 AM, 5th December 2024, About 1 year ago
Your tenant has the protection of his/her existing tenancy agreement so it depends on the terms of this. However, when I bought a tenanted property previously I did as suggested issue a new contract.
Member Since April 2024 - Comments: 32
12:06 PM, 5th December 2024, About 1 year ago
Reply to the comment left by Monty Bodkin at 05/12/2024 – 08:29
Not exactly helpful
Member Since April 2024 - Comments: 32
12:07 PM, 5th December 2024, About 1 year ago
Reply to the comment left by at 05/12/2024 – 10:34
I did the same and simply issued a new contract which the tenant signed, after all they have agreed to the new rent anyway
Member Since August 2016 - Comments: 1190
12:40 PM, 5th December 2024, About 1 year ago
And remember as it’s a new AST you will need to issue the latest How To Rent booklet.
Member Since December 2023 - Comments: 1587
2:00 PM, 5th December 2024, About 1 year ago
The tenant would be best advised to not sign a new AST. If you can fool them into doing so, well done.
If they choose not to sign a new AST, issue a Section 13 rent increase (after you’ve notified them if their new landlord – Section 3 Notice).
Member Since October 2020 - Comments: 1173
4:56 PM, 5th December 2024, About 1 year ago
How much due diligence have you done on this tenancy/tenant?
Member Since December 2024 - Comments: 1
6:39 PM, 5th December 2024, About 1 year ago
If they agree then don’t see no problem but if not then you’ll need to take the necessary steps