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

How to rent rules - had a Google for you;

(5)

This regulation does not apply—

(b)

where—

(i)

the tenancy (“the new tenancy”) is a replacement tenancy;

Re deposit;

Under the Deregulation Act 2015 (which applies to Assured Shorthold Tenancies in England), if the same tenant signs a renewal for the same property with the same landlord and the deposit remains in the same scheme, you generally do not have to refund and take a new deposit or re-serve the Prescribed Information

EPC rules - Have a google. sure you’ll find that you do not need to re-serve at renewal

To be fair, I dont always know the legalities of all the regs and can’t generally quote names of regs. I’ve had to google to find the above to try & confirm my understanding for my sanity if noithing else. But I have picked up many years experience a Landlord, and my posts are based upon that understanding. I dont generally quote things as fact unless im pretty sure what Im saying is right.

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@Karl11 thanks

Personally I don’t rely on Google and prefer actual guidance docs from gov uk and I’ll follow those if there’s any doubt.

As not serving all the right docs at the start of a tenancy is/was a barrier to an s21 being valid I would always have done this so there is no doubt. It takes 1 email and not arduous as I keep all my documents organized.

But then I wouldn’t be renewing contracts every year unnecessarily.either.

Best

Thats a fair comment re relying on Google. In fact, I just did this, as I said to reassure myself that my original thoughts were on the right track.

I only got involved as I was concerned you’d given incorrect information, and suggesting that a Landlord had broken rules, which I didn’t think they had;

Just because you;

doesn’t make it a rule / law, that others

to follow.

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@Karl11 thanks yes well what I thought ‘had’ to be done based on govt guidance seems may not have been correct based on what you’ve found/your past knowledge.

Personally with the emphasis on correct documentation in RRA and very large fines for getting anything wrong I would probably still always re issue all these docs when I have a new AST as belt n braces but that’s me being cautious rather than a requirement.

Best

Only rent increases agreed before 1 May by s13 will be valid. I formally agreed or by rent review clauses in the contract will not.

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Did you mean “If informally agreed” i.e. verbally?

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Sorry, yhat should have said informally agreed.

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I used to agree informally in the past but due to new rules kicking in, I sent form 4 in case informal agreement puts me in a weak position. And I think I did it right as tenant is now looking into new rule changes to see if there is anything in their benefit. As far as my investigation goes, if you served Form 4 ( I.e. section 13) before 1st May and have 1 month notice and you didn’t increase rent during last 12 months then it is enforceable based on old rules even if rent increase due after 1st May. Only issue is if there is anything makes served section 13 invalid then you are in the hands of new rules whic means 2 months plus tribunal time ( if challenged). As it is not back dated tenant might wait until last minute to object and rely on tribunal backlog to avoid increase some time. This will probably lead landlords asking for market rate to compensate for lost time provided that tribunal honours the amount. This is turning into chess game. I am not lawyer or anything similar so my comment is based on my opinions and reading.

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I would just do a s23. Some tenants ask for that even under the old regs so that’s simplest.

Landlord Guild and probably other landlords associations have templates

@David89

Do you mean s13 ?