Hi guys,
Please stand at a landlord position to read my post and appreciate your help to make suggestions.
- Situation:
London rent £1550 pcm
Tenancy 24 months from 1 March 2022 to 29 Feb 2024 with 18 month break clause.
Relationship between me and the tenant has broken down since I tried to increase £50pcm in Sept 2022 during fixed term. I understood that rent should not be increased during fixed term but only if tenant agrees.
Tenant since then refused my entry repeated for inspection, mortgage valuation, although inspection is stated in the tenancy agreement. I have sent 1st letter and 2nd letter etc no reply…
I am considering to increase the rent from £1550 pcm to £1950 pcm (area market rate searched this week is between £1850 pcm and £2000 pcm and next door tenants are facing a rent increase from £1450 to £1850) and my anticipated reaction from the tenant is a 100% refusal.
In my years being a landlord, being lucky, never had to consider to serve notice 21, so this is a first.
I have instructed Landlord Action, think it is relatively cheap, after comparing some rates from different legal teams where I used to purchase properties.
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When does my fixed period end? Am I correct to think 31 August 2023? When can I serve notice 21, 30 June or from 31 August?
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Comparing the two possible routes: the notice 21 (no fault) and notice 8 (breach of tenancy agreement - no access for inspection), any difference in the process after serving the notice?
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I understand that I do not have to provide any specific reason why I need the property back, but any difference in practice between Landlord moves back to the property or Landlord is selling the property?
Any successful stories from you guys that could share with me for my learning curve…
Thanks!
the break clause:
Any time after 18 months of the initial fixed term of this tenancy either party may invoke this break clause by providing a minimum of 60 days written notice to the other (such notice to expire on the last day of a rental period of the tenancy). At the end of such notice the tenancy shall end and all obligations and responsibilities shall cease; subject nevertheless to any claim by either party against the other in respect of any breach of any of the terms and conditions of the agreement.
The tenant is correct that no rent increase can be imposed during the fixed term unless the tenancy agreement says it can.
Your mistake was to give a 2 year tenancy. Most experienced landlords want it to become periodic asap so only give a 6 month initial or fixed term.
You can serve a 60 day notice from 1 September which will expire toward the end of November. Assuming the tenants cant find another rental property and force you to evict, you might regain possession late Summer or early Autumn next year. However, you would be able to serve a s13 notice to increase the rent from 1 March 2024.
Thanks David for your detailed reply.
I usually do 12 month with 6 month break clause. The reason why I have this 2-year tenancy is that I want assurance that I do not need to look for a rent-paying tenant soon after seeing what happened during Covid. This is suitable with my demanding full time position…
I read with standard 6 month break clause, can give notice at the 4th month, it becomes effective at the 6 month point.
Therefore, with my 18 month break clause, it should expires on 31 August 2023, I should be able to give the notice on 30 June? I know it’s in the past, which means if I give notice today, if tenant accept the notice, she would need vacate the property on 20 September?
Instead of serving a 60 day notice from 1 September…
The assurance you seek is a delusion. If a tenants circumstances change, they will ask you to release them and only a foolish landlord would try to stop them.
Break clauses are notorious for being badly drafted and either unenforceable or not operating as expected. Thats why I always give a 6 month initial term and then let it go periodic.
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