I own 1 property with a tenant in residence, but coming to the end of the initial term of the12 month AST. The tenancy will become a contractual periodic tenancy, which the tenant is happy about as they are looking to buy so the 1 month notice period for them is handy. Fine by me. My question is about increasing rent at the end of the fixed term, ie which mechanism is correct.
The current AST has a vague clause that rent is reviewed annually and adjusted according to market value. Does this mean that I simply notify them of the increase and don’t have to (in fact MAY NOT) use a section 13 notice. If they agree this increase by email is this then legally binding? And if they do not agree, is this still legally binding? There doesn’t appear to be a mechanism for objecting a rent increase like the tribunal for a Section 13.
Now to apply this same question to the standard OR AST - what mechanism is supposed to be used to increase rent after the initial term? As there is no rent review clause in the OR AST, my understanding is that it has to be a section 13 notice. Do OR provide any assistance in issuing this? Has anybody successfully added a rent review clause to the OR AST, and if so, what is the correct format?
Many thanks