Hi Guys
I’m a new landlord who will have had my first tenants for a year come October. They are good tenants but with everything going up in price, I will need to put the rent up a bit at the end of the current term - so I was wondering what standard practice for doing this is?
I’m thinking to informally let them know this will be happening this week, but then I assume I’ll need to get agreement from them one way or the other by August (2 months before the term ends), so that if they don’t agree to the increase I can give them adequate notice to leave.
I use Openrent’s AST and I see they have renewal options which appear to cover this, but I just wanted to check with the community here as I don’t want to get things wrong.
Best practice is to agree a rent increase informally in advance with a couple of months notice. If they agree then you just let the tenancy go periodic and once they start paying the increase it becomes binding.
If they dont agree or you are doubtful, you serve a section 13 notice of rent increase to come into force once the tenancy becomes periodic, which they have to pay or challenge through the first tier tribunal. If they dont pay, you serve notice.
Hi can I just follow up on above please. My tenants finished an year and instead of periodic we have renewed the AST for another year since end July. I didn’t make any increase to rent and with remortgage cost going way up I feel like I should have increased the rent. Is there any provision to increase it now? Thanks