Hi there,
I want to issue my tenants a new contract with a rent increase, they are aware it was rented below the market average for the area for the first year.
Do I have to give them six months notice of the increase ? I’ve missed the date by 10 days if it is. Also Does the contract have to 100% match the precious contract, there is a section in there I would like to remove. Not the statutory part.
Thanks for your time !
Hi there, in order to increase the rent on a tenant you have to have it writen in the contract that rent is subject to change during the tenancy, otherwise you may find your self on the wrong side of the law for breaching the comtract between yourselves. When the contract runs out if they want to carry on the tenancy only then would you be allowed to make amendments to the current contract.
Contracts are there to protect you and the tenant so they cant be changed unless mutually agreed mid contract, no point signing a contract if it can be changed mid term
I agree with Claire24: the rent cannot be increased during the fixed term.
Your rent can only be increased if:
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you agree to the increase or accept it by paying it
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a rent review clause in your tenancy agreement sets out how and when your rent can be increased
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your landlord uses a section 13 notice to give you at least 1 month’s notice of the proposed increase (if a rent review clause can’t be used)
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Your rent can’t be increased during the fixed-term of your tenancy unless a rent review clause allows it. “Your landlord must give you a minimum of one month’s notice (if you pay rent weekly or monthly). If you have a yearly tenancy, they must give you 6 months’ notice”
All from https://www.gov.uk/private-renting/rent-increases.
For more guidance see How to Increase the Rent by Serving a Section 13 Notice
Note, when the fixed term has expired, meaning the tenancy has automatically become a periodic tenancy.
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The landlord and tenant can agree to an increase in the rent simply by mutual agreement. In this case, there’s no need to use the formal Section 13 process.
The above are summarised notes: read the references to avoid any mistakes!
I wasn’t increasing during the term of their contract but offering them a new fixed term contract with a revised rent. The rent was low and they were aware there would be an increase. However I left an agency to do the tenancy and their clause said inline with RPI which means £8 a month. It’s ludicrous and I didn’t notice this at the time.
I just needed to know how much notice I needed to give them to do this. I don’t want it rolling onto a monthly tenancy after the fixed term.