Rent increase paperwork dilemma?

Rent increase paperwork dilemma?

9:48 AM, 2nd April 2024, About 2 weeks ago 13

Text Size

Hi, I want to make a 5% rent increase for tenants who are on assured shorthold periodic tenancies.

I have never increased rent but have a clause in the tenancy agreements which states: “If the tenancy continues beyond one year and is an Assured Periodic Tenancy then the rent will be reviewed annually on or after the anniversary date of the commencement. Any increase will be discussed and agreed and then notified to the tenant using Form Section 13 (2) under the housing Act 1988”

I am not sure whether l can use this form legally as Shelter says that a section 13 notice cannot be used to increase the rent for a contractual periodic tenancy that contains a rent review clause.

Help what should I do?


Share This Article


Comments

Cider Drinker

10:26 AM, 2nd April 2024, About 2 weeks ago

Ignore Shelter (who don’t provide shelter to anyone).

Discuss an increase with your tenants. Maybe offer a new AST and remove the stupid clauses that add nothing.

If they agree to a new AST, problem solved. If they disagree, contact an eviction specialist for advice. Not necessarily to seek possession but to increase the rent correctly.

Reluctant Landlord

11:16 AM, 2nd April 2024, About 2 weeks ago

if the AST has a rent review clause then yes you dont need to use a S13.

Your clause says you can increase the rent by use of S13.

So just issue a S13!

And yes remove the reference to the S13 part in the AST when its reviewed or you take on a new tenant. I just put in that 'the rent shall be reviewed on an annual basis and if an increase is proposed the tenant shall be informed in writing no less than 28 days before the increase shall take effect'

If the RRB comes in, it proposes that ALL AST use a S13 so it wont matter what the AST says at this point everyone will be doing the same.

David

13:33 PM, 2nd April 2024, About 2 weeks ago

Dont use that ridiculous tenancy agreement template again.

Fed Up Landlord

15:07 PM, 2nd April 2024, About 2 weeks ago

Don't discuss. Just serve Section 13. You are the landlord. Business is not a democracy.

Michael Booth

16:46 PM, 2nd April 2024, About 2 weeks ago

Reply to the comment left by Cider Drinker at 02/04/2024 - 10:26
Take it to a fair rrent tribunal if its not a current market rates.

PAUL BARTLETT

17:06 PM, 2nd April 2024, About 2 weeks ago

Reply to the comment left by Fed Up Landlord at 02/04/2024 - 15:07
Indeed however you should demonstrate what are current market rents for similar properties in order to confirm that your increase is market realistic.
Should the tenant believe that it's not at or very slightly below market rates they are entitled to take your Section 13 notice to the Valuation Tribunal where your new rent will be assessed against actual tenancy data to ensure that it is market realistic.
The reason for slightly below is so that a wise tenant can accept and avoid delays. Also the less wise tenant can be advised that they risk the tribunal setting a higher market rent than you decided.
The very few new tenancies in a tight market can be a problem because the data isn't available so the offers, preferably let, have to be used instead. So fair to mention those market conditions in your covering letter with the section 13 notice.

Fed-up Landlord

18:49 PM, 2nd April 2024, About 2 weeks ago

I always issue a new AST; I just don't like periodic tenancies.
That way, both parties know what they are getting when they sign, and that includes a rent increase clause of at least inflation.

Cider Drinker

20:01 PM, 2nd April 2024, About 2 weeks ago

I always provide comparative data t9 support any rent increase.

My rents compare well with Local Housing Allowance. Tenants don’t need to top up their rent from other benefits - so long as they are entitled to the number of bedrooms.

I provide links to any comparable social housing and I highlight the extras that my properties brings to the party.

I also provide inflation figures.

The tenants have a choice…

1. Accept the increase.
2. Negotiate a lower increase or better terms.
3, Give notice to quit. I can be flexible with the length of notice periods.
4. Take the rent to a Rent Tribunal (good luck with that!).

Yellard

5:53 AM, 3rd April 2024, About 2 weeks ago

Reply to the comment left by PAUL BARTLETT at 02/04/2024 - 17:06
I am not sure what the history of the Tribunal is on this..? How many increases have they confirmed, reduced, increased or denied? . One thing is certain landlords soon won't be able to go to the Tribunal. That is because at the moment a tenant who appeals to the Tribunal on unreasonable grounds, knows they risk the landlord not renewing the contract or terminating a periodic tenancy. With the RRB, tenants who appeal will have nothing to lose (and although most tenants are reasonable, many protest at increases well below inflation).The result? Rent controls, which like the LHA (Rent Benefit), will be based purely on size of property. Decent landlords will get the same rent as slum landlords who neglect their property..And the amount won't keep up with inflation.
Decent landlords will increasingly quit the PRS market leaving slum landlords who maximise profits with lows rents by neglecting their properties. Then, Shelter, Gen Rent and the Labour government will cry... 'Oooh, look at all these Rachmans.. ". A situation that they will have created. If anyone thinks the RRB isn't going to lead to rent controls?Good luck with that..

SteveFowkes

7:22 AM, 6th April 2024, About 2 weeks ago

Reply to the comment left by Fed-up Landlord at 02/04/2024 - 18:49
And if the tenant stops paying you can't get them out
Stupid

1 2

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