Rent increase permitted during tenant exit dispute?

Rent increase permitted during tenant exit dispute?

9:19 AM, 6th September 2023, About 8 months ago 20

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Hello, I have a tenant of 7 years that I served formal landlord-tenant notice along with a section 21. The 2-month period has passed & the tenant is refusing to leave so my question is now the tenancy contract has expired & whilst I pursue the legal route to have the tenant evicted can I legally increase the rent? I have retained the same rent amount since the tenant moved in (several years ago) and now the rental value is approx. 40% above what she has been paying.

Can I increase the rent in the interim in a legal way and whilst I expect this to be rejected by the tenant too I will add any arrears to the costs I pursue through the courts that I incur whilst getting the court process actioned to evict.

Thanks,

Mark


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Comments

Teessider

9:32 AM, 6th September 2023, About 8 months ago

The rules are the same as if you were nit seeking possession.

Raise it market rate or thereabouts. They can accept it, take it to a Rent Tribunal (who could impose a higher increase) or they can give one month’s notice to quit.
If they do nothing, the increased rent becomes payable. Section 8 when arrears are two months and MCOL for any shortfall.

Clint

10:21 AM, 6th September 2023, About 8 months ago

As far as I am aware, having done this years ago, the judge said increasing the rent was accepting that the tenant could stay on and I had to serve a section 21 notice all over again.
It could have just been the judge at the time and I did not investigate it any further.
It may be an idea to search the web on this or if you are a member of the NRLA, they should be able to advise on this.

Mark Porter

10:31 AM, 6th September 2023, About 8 months ago

Reply to the comment left by Clint at 06/09/2023 - 10:21My understanding is the same. We were evicting our tenants for anti-social behaviour and arrears and they missed all of the important deadlines to move out.
I took advice from the NRLA about increasing the rent in the hope that this would give them a nudge however the advice was that to issue a renewal AST with increased rent (or even without increased rent) is essentially giving them permission to stay in the property.
My suggestion would be to play the long game, follow the legal route and do it right.
On the topic of the rent being 40% under market rate, I've always tried to stay at or near the market rates as when looking to remortgage, banks don't look favourably on low rents, especially when looking for a further advance.

Hedley

10:31 AM, 6th September 2023, About 8 months ago

Mt take on this is the same as that of the judge. You would be acknowledging a continutaion of tenancy, or a new tenancy. If you want the tenant out, be careful not to invalidate your Sec 21 notice.

Collins John-chieme

10:35 AM, 6th September 2023, About 8 months ago

To my understanding, if the tenant refuse to accept the rent increase, you can evict them having served section 21. You have to wait for the court to grant you possession and wait for bailiffs to enforce the possession order. This could take 1 year or more. In the meantime, I think the tenant is only liable for the rent as agreed and not liable for the increased rent. In other words, if the tenant is paying £1200 a month during the contract and you raise the rent to £1400 for the new contract. The tenant is only obliged to continue paying £1200 until they are evicted. You can only claim the court cost and not the increase in rent.

I am no expert but this is my understanding.

Kate Mellor

11:30 AM, 6th September 2023, About 8 months ago

Personally I would always go for an accelerated possession order and claim any money owed in a separate MCOL. My top priority is always to regain possession as quickly as possible and mitigate my losses.

Collins John-chieme

11:41 AM, 6th September 2023, About 8 months ago

Unfortunately I don't think there are options for accelerated possession hearing. I would like to know if there are any.

It is painfully slow to regain possession and at the moment, it is taking close to a year or so.

TheMaluka

11:42 AM, 6th September 2023, About 8 months ago

Reply to the comment left by Kate Mellor at 06/09/2023 - 11:30
I always go for a moneyclaim first as this ensures that the delinquent tenant cannot dupe another landlord. Applying for a moneyclaim and a section 21/8 simultaneously usually ensures that the judgement for the money is obtained first.

David

11:47 AM, 6th September 2023, About 8 months ago

There is no legal impediment to raising the rent whilst waiting for a possession hearing. If the judge questions it, just make clear that the increase is justified and not an attempt to harass the tenant.

Collins John-chieme

11:53 AM, 6th September 2023, About 8 months ago

What happens if the tenant does not accept the rent increase and ask for the old rent to be in place while they seek for alternative accommodation. What happens if the tenant moves out 6 months down the line. Will they be liable for the rent increase during the 6 months bearing in mind they didn't accept the rent increase in the first instance.

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