Question from an inexperienced landlord

nikonpro

About 6 years ago I inherited a small flat that has a tenant..
The local council pay the rent directly to me and everything runs
very smoothly... About once a year the council reviews the tenant and stops paying for a couple of months... they then resume and pay up all arrears...
So no problems...

However the rent has not changed in six years and I was wondering if I am entitled to ask for an increase ?? If onlyto keep up with inflation.. And if you think I am... do I ask the tenant or write to the council ?? What is the correct way to do it..

The property is a small first floor flat above a shop. It has a Bed sitting room.. a good size kitchen and a bathroom.. Location is Upper Belvedere, kent. The current long standing rent is £395 a month..

Any advice gratefully received

Ta ... Chris

RAS

Start by checking the LHA rate for that address.

nikonpro

HOW ??
remember I am clueless at being a landlord

Annisele

Type "LHA rates [name of your local council]" into google.

G_M

It depends on your Tenancy Agreement.

First, is your TA is with the tenant/occupier, and the 'council' is not paying the rent - the tenant is claiming Housing Benefit, which is paid to you? Please confirm.

Or... do you rent the property direct to the council, who then sublet to a council tenant/occupier?

Either way, what are the terms of the TA? When did it start? What was the Term (period or length)? Has it ended and become Periodic (month by month)?

Next - what if anything does your TA say about rent increases?

Once you have answered the above we will be better able to advise you.

(Oh - and I assume this is Eng/Wales not Scotland?)

nikonpro

Hello GM,
sounds like you know what your doing... I definitely do not, but lets see what I can answer.. I have dug out the tenancy agreement and it is for.. furnished flat on an assured shorthold tenancy..
The term was for 12 months ... beginning on June 11th 2001
The original rent was for £375 per month ..
I cant see any mention of increases on the paperwork.
The agreement was originally between the tenant and my mother, who is now deceased ..

Is that enough to help ??

G_M

OK. So the council is irrelevant legally (though maybe not in practice).

Your contract is with the tenant. It just so happens that the tenant claims Benefits (not your business).

As the 12 month Fixed Term has ended, you now have a (monthly?) Periodic Tenancy which means you can end the tenancy any time you want by giving 2 full Rental Periods Notice (read this post to get those dates right!).

To change the rent on a Periodic Tenancy eithr
1) if the original TA had a clause saying when and how much, you must follow that - but you say it does not.

2) So you must use a S13 Notice to increase the rent. You must give a months notice. The issue here, of course, is whether the tenant can afford an increase, which may depend on whether his Benefits claim will be increased. If not, he would have to find the extra himself.

I hesitate to ask - but are you doing all the other things right?
* declaring rent income to HMRC?
* Valid insurance?
* BTL/CTL if you have a mortgage?
* Annual gas inspection...?

More here which may be useful.

BitterAndTwisted

The rent has only been increased by £20 a month since 2001? Can I be your tenant please?

I think you should have a trip round the local lettings agents in that area and do some research on what the average rents are for similar properties. It sounds ruddy cheap at the moment and can't be providing that much of a sinking-fund for future repairs or improvements.

nikonpro

Hi, thanks again for the help,
Taxes all above board
Insurance all correct
Flat is all electric so no gas inspection
No mortgage..

Unfortunately the tenant has no way of paying any increase herself.. and as she has been no trouble at all I dont want to chuck her out..

On the LHA site it gives the average rent for a one bedroom flat in the area as £600 a month.. However, it is not exactly a one bedroom, as it is a bed sit with kitchen and bathroom .. private front door

G_M

nikonpro wrote: »

....
Unfortunately the tenant has no way of paying any increase herself.. and as she has been no trouble at all I dont want to chuck her out..

On the LHA site it gives the average rent for a one bedroom flat in the area as £600 a month.. However, it is not exactly a one bedroom, as it is a bed sit with kitchen and bathroom .. private front door

I'm no expert on benefits but if you a) want to keep the tenant and b) will only increase the rent if Benefits will pay, you need to find out what the max HB will pay is!

And then use a S13 to increase to that level.

nikonpro

Any idea how we find that out.??