My 12 month AST is coming to an end this month and we plan on renewing again at a higher rent (since it’s decently discounted at the moment). We wish to renew it for 6 months instead of 12 and increase the rental amount month to month.
My questions are:
Do I have to give specific notice of the rental increase in advance? Or do I present/propose it with the new contract?
If I renew for 6 months, do section 8 and 21 notice periods change?
And are there any other drawbacks to going for 6 months (legally)? We’re doing it purely for more flexibility.
You would usually give at the very least a months notice for a rent increase. Even if the increase is a condition of the new contract you should still provide enough notice as it is continuation of the original tenancy.
I don’t see any legal drawback to a 6 month agreement over 12 months.
Also the tenant doesn’t have to agree to a new contract in which case the current contract would just continue as a monthly periodic tenancy under the same terms. In which case if you need to raise the rent with the current tenancy you would need to give notice.
I agree with the above. Its far better for you to just allow the tenancy to go periodic now. You can then use s13 to increase the rent.
Incidentally, you cant impose a rent increase more frequently than every 12 months no matter how you do it. If the tenant agrees to pay a higher amount then fine, but the have the right to refuse. They also dont have to accept a new tenancy agreement
I agree with @EmanNeercs. Its far better for you to just allow the tenancy to go periodic now. You can then use s13 to increase the rent.
Incidentally, you cant impose a rent increase more frequently than every 12 months no matter how you do it. If the tenant agrees to pay a higher amount then fine, but the have the right to refuse. They also dont have to accept a new tenancy agreement.
The tenant wishes for their partner to move in (over the age of 18). But after some thought, I think we may go down the permitted occupier route in which case we wouldn’t have to draw up a new contract.
Would I have to propose the s13 with a months notice if we wish to go by a monthly periodic tenancy? Also, any chance of a verbal proposal for rent increase or is it better to go straight with the s13 option. The tenancy ends in 3 weeks and I wish to let them know beforehand
Yes, an informal proposal to increase the rent is usually better, but if you get the feeling that they wont pay the increase, serve a s13 notice and follow the requirements in the notice.
I’m following this topic with interest as I will need to increase rent at the end of the year - just not to make a loss with the spiralling interest rate. The property is still comfortably below the market rate.
The last time I gave notice for a rent increase was just via text message. Not sure if I’d be able to get away with that next time.
I’ve noticed the advice on here to increase it informally- would this not leave the landlord more vulnerable in light of the changes coming in?
I’d take a belt and braces approach. First have the conversation with the tenant and tell them that you will also give them formal notice of the rent increase with a S13. Issue the notice. Hopefully they don’t contest the increase and just start paying (as long as the increase is reasonable).