Putting up the rent

JennyP

I have a flat that I let out - it's my pension plan as I haven't been able to put much by apart from that.
I've had the same tenant for a couple of years and I haven't put the rent up in that time. Recently I've realised that I am charging far too little. I reckon I could be charging £100 a month more, my friend (who lives in the same block as the flat) reckons I'm undercharging by £200 a month and one of the local letting agents reckons it's more like £400!
I'd like to put the rent up by £100. I know I could serve the tenant notice and then ask the letting agent to get me the £1500 but he's been a great tenant and it's not just about the money (see - some of us landlords are actually nice!)
Does anyone know where I can get a section 13 notice to serve on him in order to put the rent up?
It seems a horribly legal way of doing it - I suppose just writing a letter isn't really the way to go is it?

G_M

Rent increases (how and when can rent be changed)

It seems a horribly legal way of doing it - I suppose just writing a letter isn't really the way to go is it?

Why not discuss it informally first. Onceyou reach an agreement, do the formalities.

How much would it cost you to evict and re-let?

* cost in £ and time in evicting
* void (1 - 3 months?)
* re-letting costs

BitterAndTwisted

If your tenant agrees that an additional £100 a month is reasonable and then goes on to pay it, you won't need a Section 13 Notice.

For all your other landlording needs; advice, forms, letters, whatever else you should join a Landlords Association. The cost of membership can be offset against the rental-income for tax-purposes.

00ec25

you could easily have googled this yourself
http://www.propertyinvestmentproject.co.uk/blog/notice-of-rent-increase-form/

JennyP

The tenant has been there years so is now on what I gather is a "Statutory Periodic Tenancy".
The original contract says:
"The landlord may increase the rent if renewing the Term by giving the Tenant at least two months notice in writing prior to a rent payment day specifying the amount of the new term"
However it also specifies that "the landlord cannot increase the rent by more than 5%" so I cannot put it up by £100 can i? I think in that case the only thing is to serve him notice! It seems a shame but if the letting agent is right and I could let for £1400 or £1500 a month - i.e. £300 or £400 more than I am getting now, that is an awful lot of money!
I am out of work at the end of the year so that will feel like an even bigger amount of money then!

JennyP

00ec25 wrote: »

you could easily have googled this yourself
http://www.propertyinvestmentproject.co.uk/blog/notice-of-rent-increase-form/

I did google this but didn't find that link! Anyway, the advice given on this forum is often far superior to google results!

ognum

Your main problem seems to be that you have not conducted your letting in a timely buisness like way. If you had reviewed this more often you would not be where you are now and this is a lesson to all landlords.

It seems that suddenly you realise you will be poorer at the end of the year and you want everything to come to you quickly. By the way, of course you have a great tenant, he realises he is on to a good thing.

I think you first need an informal discussion and then go to a formal rent rise. You will have to stay within you agreement if you plan on keeping the same tenant.

BitterAndTwisted

JennyP wrote: »

The tenant has been there years so is now on what I gather is a "Statutory Periodic Tenancy".
The original contract says:
"The landlord may increase the rent if renewing the Term by giving the Tenant at least two months notice in writing prior to a rent payment day specifying the amount of the new term"

But you're not going to renew the AST, are you? You just want the tenant to carry on with their periodic tenancy on a new rent.

However it also specifies that "the landlord cannot increase the rent by more than 5%" so I cannot put it up by £100 can i?

5% per annum/per renewal. But you're not going to renew, so I reckon this clause is irrelevant.

I think in that case the only thing is to serve him notice! It seems a shame but if the letting agent is right and I could let for £1400 or £1500 a month - i.e. £300 or £400 more than I am getting now, that is an awful lot of money!
I am out of work at the end of the year so that will feel like an even bigger amount of money then!

An alternative to serving him notice is to propose a new, more competitive rent but warn him that if he doesn't agree to this modest £100 increase that you could choose the take steps to end the tenancy.

If other similar properties are renting for substantially more then I don't think your tenant could claim that what you are proposing is unreasonable.

Do the maths: proposed increase in rent versus the cost of giving him notice, possibly enforcing your S21 in court and any possible void-period between tenancies, minus the uplift for a new tenancy at this hypothetical additional £400 a month.

If this is your pension-pot you must keep your business hat on.

JennyP

BitterAndTwisted - you sound anything BUT bitter and twisted! Thank you for the sensible advice.
There is nothing to be lost from ringing him up and talking to him is there? Explaining the situation? I would rather keep him as a tenant and ask an extra £100 a month if possible!
Time to be a big girl and bite the bullet and make the call!