Increasing Rent during tenancy

Landlord Discussion Legal
1

Hi,
My tenants moved in September, 2020. It was a 1 year tenancy.
It is more than 2 years now.
They are on the same tenancy, we did not sign a new tenancy after the first year.

I am planning to increase the rent.

How many months notice should I give the tenants before increasing rent?

Is there any template to provide the notice for increasing the rent?

After I give the notice, if the tenants find somewhere else do they need to give me at least 1 month notice?

Can the tenants say No to increasing rent?
Thanks,

2

You should firstly check whether there is a rent review clause in your agreement. If so, you must follow it. Otherwise you have 2 choices. You can agree an increase informally and when they start paying it, its binding. Alternatively you can serve a s13 notice using Govt form 4. The tenant cant ignore this and must pay the increase. They can challenge it at the tribunal, but unless its way above market rent, they wont win.

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3

Hi,
Is it better to renew the tenancy if the tenants are happy to sign a new tenancy agreement?
If I serve the Section 13 notice, will I be giving the tenants an opportunity to take it to the tribunal?
Thanks

4

You need not issue Form 4 unless you & the tenant cannot agree the rent increase. If you agree, just ask them to sign a simple letter drafted by you to agree the rent.

Even if they don’t sign, if they pay the new rent this is then binding.

Certainly no need to sign a new AST

5

Better NOT to issue a replacement. With s13, the chances of a tribunal decision against you are very small

6

Thanks @David122 , @Karl2 ,

I told the letting agency that I am planning to increase the Rent. They said they would ask the tenants to sign a new tenancy.

Agency signed the original tenancy on my behalf with the tenants.
Agency has no contact with the tenants as I am managing the property.

The tenants told me that they are happy to sign the renewed tenancy if the agency provides one. Now I am thinking about what I should do.
Thanks,

7

Its in the agents interest to suggest solutions they can charge you more money for.

Most landlords I know want the tenancy to go periodic asap to give them maximum flexibility in case they or the tenant has a change of circumstances.

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8

Thank you Karl2 this is very useful, currently my Tenant is on Statuary periodic Tenancy, we have verbally agreed the Increase. Could you or someone please post a sample letter /template I can use to get signed by tenant for rent increase.

9

Hi,
Is it legal to sign a letter between the landlord and the tenant about the rent increase?

For example if the rent is £850, can me and the tenant sign an agreement saying from 1st of December, 2022 the rent will be £900?
Thanks

10

Yes, perfectly legal. You don’t even need it in writing. You can just agree it verbally. In both cases its binding from the first time they pay it, but not if they don’t pay it.

Most landlords agree it through email or similar with the tenant, but if you are in any doubt that they will pay, you can serve a s13 notice, which they have no choice about other than to appeal to the tribunal, (which would be unlikely to rule in their favour).

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