Increasing rent & new contract

Hi everyone

I’m planning on increasing the rent before the 1st May deadline of the RRA. Do I have to issue a contract under the new rules showing the new rent agreed? Historically, I would have issued a new ast as the tenants liked to see it was all official. Any advice would be helpful.

Thanks in advance

@John201

Not sure any rent increase agreed before 1 may that will come in after 1 may will be enforceable. @David122 may be able to advise.

Just wait till 1 may and serve a section13 which is the new and only legal process and is entirely 'official ’

No need for new contract and this is a lot more work (you have to refund security deposit less any deduction, Re-serve epc gsr how to let, do new inventory take new security deposit - if you weren’t doing that you were breaching the rules and could face large fines (which have increased under RRA)

Good luck

There are transitional arrangements for notices served before 1st May. Notice of a rent increase served before 1st May which take effect after 1st May is okay.

Google “Renters Rights Act Transitional Arrangements.”

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Thanks Christopher - I will look this up

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My tenants have been the same since I bought the property 10years ago. If I’d discussed and agreed a rent increase as the 12month fixed period was ending, I would always issue a new 12month ast contract reflecting the new figure. Why would you have to reimburse deposit, new inventory, eicr etc if it’s the same tenants? That makes no sense :man_shrugging:

@John201

It may make no sense to you but it’s there to protect tenants and their deposits. @David122 will correct me but my understanding is that a new fixed term tenancy always meant re serving prescribed info, unlike allowing a tenancy to become periodic. Depending on the deposit scheme it may be possible to transfer the security deposit to be for the new tenancy instead of returning it and getting a new one , assuming tenant agrees

What makes and made absolutely no sense is issuing a new contract every 12 months instead of simply an exchange of emails agreeing the increase or (from 1 may under RRA) issuing a section 13.

Best

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I agree, no need for new contract, but I think you are wrong in what you say above.

You don’t need to refund security deposit & start again, you do not have to re-serve EPC, I do not believe you have to re-serve the how to rent guide unless it has been updated. You don’t need to update the inventory, if the tenants are not changing. I also don’t believe you have to re-serve the GSR, although when I have signed a new tenancy in the past, I have done.

the guidance says

“You must give your tenant the latest version of the
‘How to rent’ guide at the start of a tenancy”

See

There’s no mention of not having to do it because of any previous tenancy with same tenant

Same guidance also says LL must also

carrying out gas safety checks every year and giving a copy of the certificate to the tenant(s) before the start of the tenancy

getting an energy performance certificate if required, and giving a copy to the tenant at the earliest opportunity (rented homes must meet the rating E or above)

and again no mention is made of not doing this due to a previous tenancy

Supposing you get the deposit transferred to relate to new tenancy. You have basically refunded deposit for old tenancy and received deposit for new one. At end of new tenancy if you try to claim for damage unless you can prove it happened during new tenancy it will get rejected by tenancy deposit scheme. So you need a new inventory.

Also if you are protecting a deposit against a new tenancy agreement there will be a new deposit certificate saying so which has to be provided to tenant.

If you don’t tell deposit scheme the deposit now relates to new tenancy you are still hanging on to a deposit for an old tenancy which has ended and it is supposed to be returned..

best

Best