Can anyone tell me why Section 21 is not included in section 13.5?
And what kind of rent increase clause should I include in a new 6 months Openrent AST?
Many thanks
I’m not familiar with the OR AST template. Can you reproduce the clause you refer to here?
Rent review clauses tend to bind the hands of both parties and are not generally favoured by landlords. If you just allow the tenancy to become periodic, then you can use a s13 notice and set the increase to be whatever you think appropriate at the time.
Hi David,
The OpenRent AST template is on their site and I have inserted this clause copied from another site:
- it is agreed that expressly, unless agreed in writing otherwise, the rent as defined in this Agreement will be reviewed in upwards only fashion on the anniversary of this Tenancy and upon each subsequent anniversary and raised by 5% of the total monthly amount being paid by the Tenant. To avoid doubt between the parties if the Landlord chooses not to raise the rent on the anniversary date of the Tenancy in one year the Landlord reserves the right to raise it in all future years.
I also wondered whether I should insert Section 21 in this section:
13.5. The Landlord gives the Tenant notice under the Housing Act 1988 that possession may be recovered on the following grounds:
The Landlord notified the Tenant that the Landlord previously occupied the Premises as the Landlord’s only or principal home and the Landlord may rely on Ground 1 of Schedule 2 to the Housing Act 1988 to recover possession of the Premises in circumstances where the Landlord requires the Premises as the Landlord’s only or principal home.
The Landlord notified the Tenant that the Premises are subject to a mortgage granted prior to the start of the tenancy for purposes of Ground 2 of Schedule 2 to the Housing Act 1988 and has served notice in accordance with Ground 1 of Schedule 2 to the Housing Act 1988.
Kind regards
Chris
@Chris64 It is strongly recommended that you avoid adding clauses to the contract as far as possible as its a legal document and unless you have substantial legal training, you are likely to get unintended consequences.
The rent review clause you quote is a good example. Its badly worded and full of “legalese”. In particular, “reviewed in upwards only fashion” is probably legally meaningless. It also appears to only allow the rent to be reviewed on one specific day each year and its not clear what that day is. “Anniversary of this tenancy” doesn’t make clear whether its the commencement of the tenancy, the date the contract was signed, the date if was offered, or some other date.
The two notices under 13.5 are there for a specific reason, which is to do with the statutory requirement to give the tenant prior notice that they may wish to use grounds 1 or 2 in the future. I’m not entirely sure what you mean by “insert s21”, but if you mean should you state in the contract that you might use it, the answer is no. Statute allows you to use it without prior notice and anything you draft in your contract is likely to work against you.
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