Hi all, I’m hoping someone can help as I’m not absolutely sure! This is my first contract. I’m the LL however I’m not absolutely sure, if can I assume, that end of the contract the rent clause would be automatically wiped and it will continue on a Contractural monthly rolling term?
Should this not be the case what should I change, in the AST to enable me to use S13 FORM(4) should I not be able to agree a rent increase first with my Tenant?
I attatch some extracts of my agreement in the hope that they will help with any responses.
Thank you for any advice that you can provid and, I apologise for my lengthy post.
EXTRACTS:
AGREEMENT FOR AN ASSURED SHORTHOLD TENANCY
For letting a dwelling on an Assured Shorthold Tenancy under Part 1 of the Housing Act 1988 as amended by the Housing Act 1996
This ASSURED SHORTHOLD AGREEMENT is made on dd/mm/yyyy
The Landlord lets to the Tenant the Premises for a period of 6 months. The Tenancy shall start on and include the dd/mm/yyyy and
shall end on and include the dd/mm/yyyy and thereafter contractually from month to month and until terminated by either party serving a notice on the other in accordance with this Agreement.
Type of Tenancy
This Agreement is intended to create an Assured Shorthold Tenancy as defined by section 19A of the Housing Act 1988 (as amended) and shall take effect subject to the provisions for the recovery of possession set out in section 21 of that Act.
Rent Increase
The Landlord can increase the Rent every twelve months on the anniversary of the date on which the Tenancy began (‘the Rent increase Date’). The increase is to be calculated according to the rise in the Retail Prices Index from the start of the Tenancy or the anniversary date whichever is the later. To avoid doubt if the Landlord does not increase the rent in any year this will not
affect the Landlord’s rights to increase the Rent in subsequent years.
Firstly, you have stated “the end of the contract.” I think you mean the end of the fixed term. At this point your tenancy becomes a monthly rolling contract with the same T&C’s.
The tenancy agreement stipulates when and by how much rent increases can be made in which case you cannot use a s13. You will need to write to the tenant informing them of the rent increase and possibly how you have arrived at the new figure.
If you want to increase the rent using a s13 you should use a tenancy agreement that doesn’t have a rent review clause. I believe this is stated on the s13 guidance notes.
I agree with Christopher32’s response. It would also appear that you only have one day each year on which you can levy an increase, which is the anniversary of the start of the tenancy. If you miss that day, you would not then be able to enforce an increase that year. You can, of course increase the rent outside of the clause by mutual agreement.
Thank you both for your replies they are very helpful.
Can I assume that all i require to do is remove the rent increase clause (to be able to use S13 (Form 4)) and the AST then automatically goes into a Contractural monthly rolling agreement at the end of the term?
I’m in my first term and have a break clause with notice required after the end of month 4.
If so can someone please advise on what would be the best way to remove the rent increase clause.
Offer a new AST (to start the day after the end of the current term) by serving notice during the break clause, or is there a way of ammending the existing AST in some way?
Once in a period AST is there anything that I should re-issue the Tenant with respect to legal requirements of a LL, i.e documentation/updated safety cetificates or a Tenant how to rent guide etc?
Thanks again for yours and anyone else’s comments.