What type of Tenancy is this? How do i increase Rent

AWOL_2

I have recently been given a property from my father (jammy I know) which has an existing tenant.
The tenant moved in, in 1995, the tenant was provided with a rent book which was by default an assured shorthold tenancy agreement AST. We no longer have any records of the rent book and the council are paying the rent on behalf of the tenant. Therefore no written agreement! This has not been an issue as the rent is paid by the council and the tenant has been good, hence why he has lived there for a number of years.
The fixed period has obviously expired therefore I know that the tenancy is classed as a periodic tenancy, but which type?

Assured periodic Tenancy
or
Statutory periodic tenancy

The rent has not been increased for a number of years and I hope to increase the rent. What do I need to do to increase the rent?

Can I use form 4b http://www.communities.gov.uk/documents/housing/doc/tenancyform4b.doc

Only concern is that it says cant be used if it is a statutory periodic tenancy.

As you can see I have done a bit of reserch already, but was hoping to call on someone elses expert opinion. I need to try and get more money from the property as the current rent is well below market value.

Thanks

barnaby-bear

AWOL wrote: »

I have recently been given a property from my father (jammy I know) which has an existing tenant.
The tenant moved in, in 1995, the tenant was provided with a rent book which was by default an assured shorthold tenancy agreement AST. We no longer have any records of the rent book and the council are paying the rent on behalf of the tenant. Therefore no written agreement! This has not been an issue as the rent is paid by the council and the tenant has been good, hence why he has lived there for a number of years.
The fixed period has obviously expired therefore I know that the tenancy is classed as a periodic tenancy, but which type?

Assured periodic Tenancy
or
Statutory periodic tenancy

The rent has not been increased for a number of years and I hope to increase the rent. What do I need to do to increase the rent?

Can I use form 4b http://www.communities.gov.uk/documents/housing/doc/tenancyform4b.doc

Only concern is that it says cant be used if it is a statutory periodic tenancy.

As you can see I have done a bit of reserch already, but was hoping to call on someone elses expert opinion. I need to try and get more money from the property as the current rent is well below market value.

Thanks

http://www.landlordzone.co.uk/residential_tenancies.htm
"Tenancies commencing after 15 January 1989 but before 28 February 1997 may be either Assured Tenancies or Assured Shorthold Tenancies. The default tenancy here is the Assured one which offers more security to the tenant, unless the landlord can show that the correct Shorthold (Section 20) Notice was served. Again, caution is needed when purchasing with existing tenants."

Are you sure it's an AST? The default was assured then - got your section 20 to hand.... if you haven't got it it'll be assumed assured and you're subject to rent tribunals...
The Residential Property Tribunal Service determine Fair rents and Market rents for Regulated (Rent Act) and Assured tenancies.

house184

I believe you can use that form. Don't worry about the part of the notes that says you can't as that is just where you are proposing new terms after the fixed term has ended as per section 6 of the Housing Act 1988.

Default tenancies given in 1995 were assured tenancies unless a section 20 notice was given stating that the tenancy was to be an assured shorthold tenancy. You might want to ask your Dad if he gave such a notice as otherwise your tenant will be most likely be an assured tenant and not an assured shorthold tenant and will therefore be very difficult to get rid of!

AWOL_2

Firstly thanks for the current replies.
I guess it is safe to assume based on the fact that we do not have the tenancy agreenment to hand anymore that the tenants would be classed as assured tenancy.

In the first instance I only want to increase rent therefore I will give the tenants the above form 4b. If they pay rent then fine, however I am concerned that they will not be able to pay the current market rate and therefore what would I need to do next to evict.

I guess when they default on rent I will have grounds under point 8 - rent arrears - how much rent arrears should there be and how long would i have to wait before taking it to the next step and what are the next steps.

Your help so far has been really helpfull. No matter how much you research these points its always reasurring to know that your on the right path.

tbs624

It sounds as if you are getting too far ahead of yourself. Anyone taking on ownership of a property with an assured tenancy in place should get themselves qualified f2f legal advice: it will be cheaper in the long run than making a hash of things, and let’s remember that this is a long-standing tenant’s home that you are talking about. Maybe it would be worth you joining one of the national landlord associations or making use of Tessa Shepperson's Landlord Law site.


As you are talking about raising the rent have you checked out the LHA (Local Housing Allowance) as a start point?

You will have seen, from the form that you intend to use, that the tenant has to receive that Notice complete with the info on their rights and what their options are if they disagree with the rent increase.

A RAC (rent assessment committee) may not approve your full proposed increase, so you need to get to that point first: this is especially likely if there have been any long standing repairs issues. It’s also worth remembering that Assured tenants have a right to succession and assignment under the Housing Act 1988.

The general rules on grounds for eviction and rent arrears are that the tenant has to be in arrears by 8 weeks/2 months (rent paid weekly/monthly) at the time of the court hearing. If a tenant pays even a small amount off prior to that date, you would be back to square one.

Have you notified the tenant that you are now the property owner and actually introduced yourself to him/her yet?

AWOL_2

Hi

Thanks for the tips and I will check out the sites you mention. I have of course introduced myself as the new landlord and already discussed with the tenants that we are looking to increase rent as it has not been increased for a couple of years.
They understand the reasons for this, however they are hoping that the council will increase the payments they make as they are wanting to stay. I have explained that any shortfall in payments from the council will need to be made by them and this is where the problems for me will begin.
They are probably unable to make these additional shortfall payments and will fall behind on the rent.
We understand that this has been their home for a number of years but whilst probably enjoying a decent property paying below market rent, and as we all are begining to tighten our belts I need to try and maximise my income as much as possible for the long run.
I guess landlords are never looked upon favourably, "bad landlord" increasing rent, I am willing to give them plently of time to find alternative accomodation should they not be able to afford the rent increase but guess need to try and increase rent and see how much extra the the council are willing to pay me directly first!

I look forward to hearing your comments or tips

adouglasmhor

Nice you got given a property and start rubbing your greedy little hands together and talking about evictions, what a lovely chap you are.

Imp

I'd suggest you speak to your dad, tell him you are going to increase the rent on the house he gave you and that you are expecting the tenant to fall behind on payments leading to their eviction. See if your dad has any words of wisdom for you.

Cannon_Fodder

Doesn't ANY rent equal an increase in the income you had before you were GIVEN this property?

Has your father an opinion on how he wishes his ex-tenant to be treated? Maybe there was a reason he allowed rent to remain static for a couple of years.

Otherwise, if you need the money, how about selling to a charitable housing association?

neverdespairgirl

AWOL wrote: »

In the first instance I only want to increase rent therefore I will give the tenants the above form 4b. If they pay rent then fine, however I am concerned that they will not be able to pay the current market rate and therefore what would I need to do next to evict.

As I understand it, you can't just raise the rent to the current market rate. You have to serve the notice properly, and if the tenant doesn't agree to the increase, it can go before the Rent Assessment Committee. A panel of 3 decides the rent value.

neverdespairgirl

AWOL wrote: »

I have explained that any shortfall in payments from the council will need to be made by them and this is where the problems for me will begin.
They are probably unable to make these additional shortfall payments and will fall behind on the rent.

God, what a charmer you are! :mad::mad: