I have recently got to re-mortgage my flat and due a low rent rates I reevaluated the flat as per local markets and emailed my lovely tenants the upcoming rent rates which will start in mid-June. They turned down the increase due to affordability and also told me that one of them was made redundant.
saying all this I have scheduled a telephone call so that we can speak. I need to be polite and ask for the property and give 2 months of notice. I want to know if I’m doing everything ok.
Also, which document to ‘section of notice’ I will need to issue - is the form 6A?
If you are going to issue a Section 21 then I let them know that you plan to do that in writing not over the phone. You need to start documenting all communication in case things go badly wrong, which you should always assume they will. You need to make sure that you have all the paperwork in place in advance before you issue the Section 21 otherwise it will be invalid and you will have to start the process again. Bear in mind that the tenants do not have to leave the property when the S21 says they should and, if they don’t, you will have to begin eviction procedings through the courts. That will cost you money.
They can’t turn down the increase if you used a Section 13 notice to raise the rent to a reasonable level. They can instead appeal to a rent tribunal and, if your raise is reasonable, they will uphold your new rent level. If your tenants are lovely and you want to keep them, can they afford rent which covers your increased mortgage costs but is still below market rates?
If they are ‘lovely tenants’ you could ask what they can afford to see whether you can agree to something. Also worth checking whether they are entitled to any benefits & ask how long they think before they can find another job. Perhaps offer to delay the rent increase to see if they get another job if that would help. Definitely worth trying to work with good tenants if the blip is temporary.