Rent increase now or just before RRB?

Looking at it logically.

At the moment, you have (x) restrictions.
In the future you are likely to have (x+y) restrictions where y is a positive number.

Therefore you should do what you need to do now, because you don’t know the quantity and quality of (y).

In the worst case, it could end up that the restrictions (y) end up being a defacto rent control/cap.

You can bring any affordability issues to the fore now, and if a tenant cannot afford the new rent you can choose not to apply it if you wish.

Why leave to chance , what you can control now?

I would be implementing a rent increase now, why wait? I hadn’t given our tenant a rent increase since the tenancy commenced 3 years ago but as soon as the rumours started up regarding possible rent caps etc I did raise the rent (by a sensible amount & not necessarily to market level) and going forward my tenant can look forward to annual rent increases. I know some of you say we should increase annually anyway but I always think it’s better to keep a good & reliable tenant happy. Not any more, annual rent increases until the current tenant vacates & then the property is going onto the market for sale (unless common sense prevails!)

Our AST says a rent review cannot be applied during the term (end next June), and is subject to 6 months notice, so notice end of December.

We are in the process of changing the name of the landlord (partner’s son). Will he inherit the AST terms in full, or could he review the rent now?

I think it’s going to be notification at the end of the month so that the rent increase is applicable from the day after the last (minimal) increase.

This time to literally just below market rate. The tenants (2 x 1 bed flats) are in for a shock unfortunately, but there is nothing more I can do. I am being pushed to take action it’s not my choice but to enable me to keep the property going to be able to let the accomodation going forward it’s got to be done. The ball will be in their court as to what they choose to do.

Always review rent yearly and keep it in line with current market prices. (Or just slightly below).

Reply to the comment left by NewYorkie at 03/10/2024 – 12:24
What made you give a fixed term of more than 6 months?

Anyway, you serve a s48/s3 notice on the tenant for change of landlord. Nothing else changes.

Reply to the comment left by DPT at 03/10/2024 – 14:13
Not my choice! These are the problems which can occur when you believe you are helping a friend.

Now and possibly again when or if the RRB becomes law.
Also depends on what your tenancy agreement states re rent increases

Great points raised above!
How would one go about informing of a rent increase to take place at end of current AST finishing in June 2025?
The contract agreement I have in place stipulates that the current rent amount is set for the full 12 months (and I am happy with this) however, I would like to inform him of a small increase before any potential rent cap is enforced. This would be in-line to cover obvious increases in Landlord insurances etc.

Reply to the comment left by Omar Kouch at 03/10/2024 – 18:20
As per contract, however months before the end of the current tenancy you inform them if they wish to take out another agreement the rent is £X. They can choose to agree and sign up or not and leave or…you have to take measures to evict them.

Remember ALL AST’s after the RRB comes in are only going to be immediately periodic (as it stands now) so it depends in your case if this happens before June 2025.

The option to evict might be more difficult once the RRB passes…so solution might be to let T know about new AST and what is offered in April/May and also serve a S21 at the same time while you can just IN CASE they don’t want to renew or pay the increase and refuse to then also leave…