Please help, I’m a bit confused with section 13 notices. The current AST ends after the 8th April 2024 and will move to a periodic tenancy from 9th April. Rent is due on the 9th of each month. The last date rent will be paid during the current AST is 9th March 2024. I’m aware I’ve to give 1 months notice of intention to increase the rent. This will be the first increase, tenant has lived there for 2 years. Can i serve the section 13 tomorrow (8/3/24) which allows for 1 month notice, for the rent increase to become effected on the 9th April 2024 or, do I have to wait until the end of the current AST (8th April) to then serve the section 13 giving 1 months notice to start the new rent increases from 9th May? Many thanks
Serve it today so that the increase takes effect on the anniversary. I would recommend for future increases to give two or even three months notice to allow the tenant ample time to make adjustments to their finances etc. One month is the minimum notice.
Thank you Chris, I’ll serve it now, but will do that in future. I actually wrote to them last month to inform them it was going up, but didn’t serve the section 13, I just sent them a notice hoping it would encourage a conversation on the topic, however they have refused so far to discuss it. First time landlord so really appreciate your help and advice. The increase I’m suggesting is minimal and well below market value so hopefully all ok. Thanks again.
Just curious about the timings there. Two one-year fixed terms or one two-year fixed term or…?
In terms of practicalities. When I issue S13 notices, I give two months’ notice. First, I email the T and let them know that in a month, I’ll be giving them an S13 notice which will give them a further month’s notice of a rent rise. So, email in March for S13 in April for rent rise from May. That gives them plenty of time to have a chat with me if it’s an issue (which it never has been).
One of the risks you bear when you give notice of a rent increase at the end of a fixed term is that Ts (usually) don’t have to give you notice to leave if the rent rise is not to their taste. They can simply hand back keys on the last day of the fixed term. That’s not a situation I would want to find myself in. Once it goes periodic, they’d be required to give you 1 month’s notice so you’d get some warning.
Melanie
I should have said to inform them two or 3 months before and then serve the official notice a month before is the ideal way
If the rent increase is reasonable and inline with similar properties in the area it is unlikely that they would choose to leave on the last day of the fixed term without giving any notice. Although I accept that it could happen. It is one of those anomalies that puts the landlord at a disadvantage,
Thank you tatemono, I greatly appreciate your response, I will certainly look to give them more notice in the future. They have had two one year fixed terms. The AST didnt specify when rent will be increased only very generic that there would be a rent review. I emailed them 15th February stating there would be a rent increase effective 9th April, however didn’t issue a S13 notice. So in the interest of fairness, would you recommend I now issue the S13 today but state it comes into effect 9th May, or do you think it is still reasonable to start from 9th April? I’ve tried to be as fair as possible with the rent and know that I am approx £100pcm below market rate. Tenant is a single parent so I have battled with this decision, however I need to also be mindful of my increases as landlord and with it being mortgaged Im held at the mercy of the banks and their impending interest rate hikes at the end of my term. Its so tough trying to separate personal feelings and running a business. If i owned the property outright I wouldnt have cared about increasing the rent at all as they have always paid on time and been a good tenant to date.
I’d go with issuing S13 today to come into effect with the 9th of May payment.
I used to have a policy of not raising rent until a tenant moved out and we readvertised. However, that’s gone to pot since 2020 when the world went mad. I now issue minimal approx 2% increases every year via S13.
For context, we own all our properties outright, but that doesn’t mean we aren’t also at the mercy of rising costs and maintenance issues that can come out of the blue (for example, whoever laid the roof tiles leaving the felt 2 inches short of the front guttering leading to damp penetration that only showed itself after having the property for 6 years!) For that reason, regularly increasing the rent a small amount even with excellent tenants is simply good business sense.
Thank you tatemono, thats great advice. I will look to implement that in future. Thank you again for your time, it is greatly appreciated.