Hi, I am a landlord with a 2 year fixed term contract, just over 1 year through the contract now, 4 month break clause has therefore passed. The open rent contract does not include any mention of a rent review. However the market rate of rent in the area has significantly increased and my mortgage interest has also significantly increased. My understanding is that I cannot increase the rent because there is no mention of a rent review in the contract. Am I allowed to serve notice and find new tenants at the higher market rental value? I would prefer to see if the existing tenants would accept a rent increase but I am not sure if I am allowed to do this without a rent review clause in the contract. Thank you
If it’s a fixed term contract, you cannot increase the rent and you cannot serve notice. The contract is binding for both sides. Why did you sign a two-year agreement if you want to change the rules after one year?
1 Like
You cannot serve notice until 2 months before the end of the fixed term iE 2 years.
You should advise of rent increase some point before this and see if they wish to stay. Incremental price increases are the most fair, especially with good tenants.
1 Like
As above, you are stuck with this until the end of the contract. This is one of many reasons why a 2 year tenancy is rarely a good idea. Most experienced landlords go for 6 month initial terms and then let the tenancy go periodic.
2 Likes
This topic was automatically closed 90 days after the last reply. New replies are no longer allowed.