I have been a landlord for a few years and have never increased any rental fee. Due to the increased cost and market price, I need to do something. All tenants have kept their jobs and are paid no less than before. The current tancy is on the monthly roll ove after the fixed term. What should I need to do about this?
Any suggestion would be appreciated. Many thanks.
2 Likes
Write to the tenants proposing an increase starting at least a month later. If their response suggests they will pay it then you need do nothing further. Once they start paying it becomes legally binding. If they disagree or don’t respond, (after being pressed), then send them a formal s13 notice. They could challenge it at the tribunal, but as long as its not an egregious increase they would almost certainly lose.
3 Likes
That is great. Thank you so much!
Does it not state in the contact?
Usually within a rate of inflation or percentage whichever is greater.
No, I do not think there is. I signed the contract which was the standard contract OpenRent generated. I believe there is nothing on the contract about it. But, this is a very good idea to do next time. Many thanks for your reply!
It’s not a good idea actually. It binds your hands. Better to have the flexibility to write/serve a s13 notice and guage the appropriate increase at the time. NRLA have just removed the rent review clause from their model contracts.
1 Like
Jiebin I have the same problem ,my tenant has been there since 2009 now I want to increase rent by 400pds a month to the current market level or better the tenant goes although he is an excellent tenant. If I increase by 400pcm he will still be paying 150 less than the current market rent…can someone shed a light on what I can do please? I have given them 6 months notice for them to decide to stay or go.
It’s not reasonable to try to compensate for 12 years of failing to increase the rent in one year. If they are good tenants that you want to keep, then increase in stages.
1 Like
Jumping on this thread, if I may,
Rent has been the same since early 2017. (current tenants in place since Jan 20 and 2 of the current 3 from July 19).
Would there be any issue in increasing rent by just under 10% from the end of the current fixed term AST?
1 Like
No legal or regulatory issue. Its just a question of whether the tenants can afford the increase and whether the increased price is still competitive in your local rental market.
1 Like
I increase every year in line with cost of living rarely do you get a challenge. However rents have cranked up recently perhaps due to recent legislation so have a look at local rents so maybe close the gap a little.
By not annually increasing you may get a little more resistance
1 Like
Hi. Thank you all for your suggestions. Is it not advisable to serve section 13 notice on the tenants directly without trying the informal email first? I would use form 4 from the Gov.UK site but am stuck on what date to insert in paragraph 3 where it asks for ‘The first rent increase date after 11th February 2003 is …?..’ .
I have not increased the rent for 4.5 years and was thinking of proposing an accumulated increase to make up for the lost years - which would still be in line with or even below the market rate for the area. Any thoughts?
From here on increase the rent annually; I have learned from my own mistake of not having done that for 4 consecutive years.
1 Like
You only increase the rent if the local market price has increased, otherwise you risk making your property uncompetitive. Just calculating a cumulative increase based on a fixed annual percentage is pretty meaningless. Use Openrent, zoopla, righmove etc to find the average price of similar property in your area now and if its more than your charging now, increase it to that. My rents in zone 4 London haven’t increased for 5 years and I had to drop them recently to attract tenants.
As to whether its better to serve a s13 straight away, it depends on your preference and your relationship with your tenants. I have a very good rapport with mine and prefer a more informal approach where possible.
3 Likes
Really helpful advice.
Thank you David
Regarding your question on the form, I believe you put the date the new rent is due to start. Giving att least a full month’s notice to the tenants.
Strange questions on these forms!
Think it’s just so everyone can see there has been at least a clear 52 weeks since the last rent increase.
Oh. Thank you. I finally reached that conclusion myself, but thank you for confirming.
1 Like
I also kept the same rent for few years and when I decided to increase it in line with market level the tenant was not happy as it found it too steep.
Since then I increase the rent om my 3 properties by 5% every year
1 Like