Rent increase holiday?

Rent increase holiday?

10:43 AM, 27th August 2021, About a month ago 4

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Hi everyone, We are managing our rental property ourselves and are lucky enough to have a good couple as our tenants for nearly 5 years. In the tenancy agreement, there is a clause for rent increase which is CPI linked or 3% minimum whichever is higher. We have been increasing our rent at 3% per annum (compounded) for the past 4 years as the CPI has been lower.

The tenants are happy with the property, we have always been very prompt dealing with any issues they raise. However, in anticipation of the coming years, we are slightly concerned that if we keep increasing the rent at 3% compounded, the rent we are charging will be higher than that of the prevailing market for a similar property.

What implications will it have if we venture to offer a rent increase “holiday” until the rest rental market catch up? Or how best to handle this without jeopardising the good position we are in?

We will also be moving soon, do we need to sign a new tenancy agreement with our new address or simply send an email to inform our tenants will suffice?

All advice will be most appreciated.

Xiaolei



Comments

by Smartermind

11:53 AM, 27th August 2021, About a month ago

Your move does not affect the tenancy agreement. You simply need to inform the tenants in writing or by email of your new address.

As for the rental increase, you could again just write to say that for the next 12 months or however long you wish there will be no increase in the rent, but that the existing terms and conditions will continue to apply and that you reserve the right to raise the rent as per the terms and conditions if market conditions change.

by Chris @ Possession Friend

16:33 PM, 27th August 2021, About a month ago

Your Tenancy agreement gives the Landlord the option to increase the rent, - Not an Obligation to Have to do so.

by Mike T

12:27 PM, 17th September 2021, About 2 weeks ago

We have a slightly similar situation. We have good tenants of 6 years standing who are paying well below market rent values. We put of increasing the rent this last 2 years partly due to covid and the fact that they are good tenants and trouble us with minor niggles or problems- they keep us advised but get on and sort them out themselves.
They property has a lock up garage in a block that we did not include when the tenancy started 6 years ago.
Now they would like to rent the garage as well. We are happy to do that. A local agent has advise us that a garage would increase the rental cost by £50 pcm.
Also to bring the house up a bit closer to market value we would need to add something like another £30 pcm.
Would we need to draw up a new agreement or confirm our, and their , agreement to this.
Thanks in advance for you comments.

by Chris @ Possession Friend

15:26 PM, 17th September 2021, About 2 weeks ago

Reply to the comment left by Mike T at 17/09/2021 - 12:27
No need for a new Tenancy, if its agreed between you, you can just record the rent change in writing confirming amount and start date.
Once they pay the rent, its considered legally agreed in accordance with Section 13(5) Housing Act, 1988


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