Hello fellow Landlords. Advice needed!
My problem/question relates to the Renters Rights Bill. This might also be of interest to other Landlords …
We rent out a shared property with a few tenants, on a joint tenancy agreement. The current agreement is meant to run until April 2026, next year. We’re currently only 6 months into the existing 12 month fixed contract.
One of the joint tenants has asked to leave (in a month) as they’re moving in with other friends. They’ve found a replacement tenant who I will need to reference (if I agree to them moving in).
I had planned to put up the rent in April, as I’m aware of various extra Landlord costs coming our way soon, and our current rent is considerably below market rates. Changing the tenant will also involve extra expenses, such as undertaking a new professional inventory.
I’d rather not put the rent now, mid tenancy, but would like to do this in 6 months time, at the end of the current 12 month period. This seems fair to me.
My question is this: How do I introduce a new tenant now (into a shared house, on a joint contract) but put up the rent up in 6 months time? The Renters Rights Bill is likely to be implemented in the next few months.
For example, if I issue a new tenancy agreement now (when the new tenant moves in), I’ve read that I will have to wait 12 months before a rent increase! Unless of course I introduce the increase now, at the point of issuing the new agreement (which I’d rather not do).
Under the new (RRB) regulations, I believe I’m not allowed to include a clause stating there will be a rent increase in X months time. Rent increases will only be allowed every 12 months.
Alternatively, another possible route (for swapping a tenant) is that one tenant could be swapped over by the use of a ‘Deed of assignment’. I believe that would mean the same tenancy agreement is still in play, but with a name/tenant change.
If I went down the ‘Deed of assignment’ route, could I also issue a notice to say that a rent increase is going to take place in April, at the end of the current 12 month period? It will mean only one rent increase has taken place annually (as it’s the same contract, rather than a new one) and they’ll have received plenty of notice about the future rental increase.
if I use a deed of assignment, could this cause any future problems with the inventory? I’m planning on issuing a new inventory to avoid any future disputes.
It all seems very complicated! The more I think about the situation the more I think I might have to issue a rental increase now, rather than in 6 months time. I’ve also read that tenants will be able to dispute rental increases under the new bill, so this could cause issues further down the line!
Am I allowed to issue a new agreement now including a rent increase, but offer a discount for the first 6 months?!!
Please let me know your thoughts on the best way to proceed with things.
Thank you 