Rent increase at the end of the fixed term

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

  1. If there is a rent review clause in the tenancy agreement then you would be expected to use it giving at least a months notice of the increase. You should have no issues if the increase is reasonable and compatible to similar properties in the area.

  2. If there is no rent review clause an increase can be agreed verbally and when the tenant makes the first payment it then becomes legally binding.

  3. If there is no rent review clause the most formal process is to use a section 13 notice. To maintain good LL/tenant relations its good practice to have a conversation first may be a couple months before and then serve the s13 a month before.

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Can you reproduce the exact rent clause here?

There is always an option to agree an increase informally if you think the tenant will pay it.

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