I am at the point of remotgage of a buy to let, having checked around the best offer I could get was a 5.19%APR, this led to a payment of £151 above my previous monthly payment. I decided to increase rent by £50 per calendar month after expiration of current agreement. I told agent to pass this information to the tenant but agent came back to me that tenant refuse increase. This looks funny to me and just wondering what I have to do. The agent said he would let me know how to evict her when the current tenancy agreement expires. My concern is that I do not want a situation whereby the tenant would just be there while trying to chase her out and eventually would be told by court that she has to stay there.
Could you please enlighten me of the best action to take in this case. Thanks
If you say xxx is the rent from xxx then that is the new rent even if the tenants refuse! They just go into arrears. Then issue a s8
Thanks Jason for your reply, will S8 come after new tenancy agreement or can it be served before expiration of current tenancy agreement please?
Are they within a fixed term tenancy?. If they are you cant increase until end of term unless tenant agrees.
Is current rent below market rents? If it is an increase is reasonable, if not it isn’t really reasonable to increase above market rates just because your costs go up, a tenant may be able to appeal that.
If you do increase and tenant contines to pay old rate it is likely to take years until you could issue a section 8 using mandatory ground of rent arrears as 2 months of deficit would need to build up. A section 21 would be more appropriate assuming they arent in a fixed term.
Hi Richard, thanks so much, this is quite explicit. The tenant is on a short term tenancy agreement of rolling 6 months. House price is just at the market rate before increase of BBR to 3.5% and checking around of recent on Zoopla and rightmove, such rate is hard to find even for 2 bedroom house while mine is 3 bedrooms.
Ask the agent why he thinks the tenants can refuse.
Does your tenancy agreement have a rent review clause?
The reason the tenant gave is that she cannot afford it
That wasnt my question.
Sorry I answered the first part leaving out the latter, the agreement does not have review clause.
Issue a section 13 rent increase. she can take it to tribunal if she think’s it’s a unfair increase.
If the tribunal think’s it’s a afair increase they will agree with you, sometimes they even raise it further.
Thanks so much, I will do so.
Regards,
Akin Adeyemo
I’d change the agent too. Theyre supposed to be working for you.
Yes you are right, thanks
Hi All,
It is going to be 3 years when I use OpenRent to manage my property as landlord. It is nice to be here in the community. All topics and knowledge shared is a massive benefit. I would like to ask some questions. I would like to increase rent, after 6 months of tenancy. It is 12 months fixed term. I got it as above, the tenants ahve to agree inrease first otherwise wont have a chance do increase it?
The reason for increase is increasing mortgage rate nearly every month.
I would like to give them notice 2 months, then rent will go up. Can Open Rent help me to set this up? Creats any letters? Do we have any examples? Or if you can share one?
If tenants wont accept increase, can I give them a notice to end tenancy?
Your help is much appreciated.
The tenant would have to agree to it. Personally I wouldnt ask the tenant though, you have agreed a fixed term with a fixed rent for 12 months so it looks really bad to try to renegotiate that halfway through and could damage relationship. Always worth remembering you are entrusting a tenant to look after something of substantial value and a happy tenant is much more likely to. Better to wait until end of fixed term and increase then, assuming increase wont put it well above market rates.
You cant evict a tenant if they dont agree to the increase during the fixed term.
Thank you Richard19. Fair point.
Hi All,
I was wondering what the cost challenges in terms of mortgage rate increases others have. For me last 5 months 120 GBP up. Last one just a few days after my post. Hope it will stop next month! Otherwise wont have a choice and start some talks with tenants.
Any thoughts? Recommendations? Please 
this is what happens when we over reach ourselves without a “buffer” .there will be home owners who are stretched with their mortgages also now the rates have increased. Some of you will have to get out of the renting business. Think ahead now folks, the world is in a worse place than a year ago. food and energy will be put ahead of rent.
Mortgage rates generally have been a lot lower than i budgeted for since being a landlord. I didnt decrease rents when mortgage rates went down so dont intend putting them up when my mortgage rates go up… I did do long term fixed and have relatively low level of mortgage so appreciate this has more impact for some but tenant affordability is down and mortgage costs are landlords problem, a lot of rental properties are financially unviable when realistic assumptions are used, interest rates arent that high.
With the present BBR jump to 3.5%, my recent remortgage has gone to almost double my previous amount paid on my BTL property. I do not think Landlord will be able to absorb the increase margin except someone has made his/her millions in the past. the only option would be to push part of the mortgage increase to the tenants.