What exactly does a 'rent review' mean?

rowan_tree

Hi everyone and thank you in advance for any advice and guidance.

I'm a little over 5 months into a 3 year tenancy agreement and in the contract it states that at 6 months a 'rental review of £xxx' will occur.

It does not state that an increase will happen, just a 'review'.

I pay rent via direct debit and haven't received any notification of a change to the amount, nor have I received anything from the letting agents regarding this review despite numerous requests.

(The lady I dealt with wasn't part of the lettings team so couldn't advise me when I went to sign....yes I know....I shouldn't have signed without proper guidance, but it was either sign there and then or lose the house)

I'm not able to call them and ask as I'm currently working unsocial hours, and so I'd like some advice about what this means.

Can they change the direct debit amount without giving notice? How much notice do they need to give?

Does a review actually mean it will be increased?

Can I object to an increase until my 3 years is up?

Many thanks.

Kynthia

Are you sure you pay by direct debit as most tenants set up a standing order and this can only be changed by you?

Rent increases usually are done with notice, but they usually aren't allowed within a fixed term. However I don't believe all contracts have your clause.

BitterAndTwisted

Only a fool would pay their rent via a direct debit. Are you certain that you're not paying by a standing-order mandate?

If there really is a rent-review clause in your contract I would not keep reminding the letting-agent of it. Let them contact you in order to open up negotiations.

G_M

Kynthia wrote: »

...

Rent increases [STRIKE]usually are [/STRIKE] must be done with notice, but they usually aren't allowed within a fixed term. However I don't believe all contracts have your clause.

Sorry Kynthia - rent increases ARE allowed within the fixed term, but only if

a) the contract says when and
b) the contract says how much

The LL cannot just do a 'review' and invent whatever new rent he fancies.

Read:

Rent increases (how and when can rent be changed)

HappyMJ

rowan_tree wrote: »

Hi everyone and thank you in advance for any advice and guidance.

I'm a little over 5 months into a 3 year tenancy agreement and in the contract it states that at 6 months a 'rental review of £xxx' will occur.

It does not state that an increase will happen, just a 'review'.

I pay rent via direct debit and haven't received any notification of a change to the amount, nor have I received anything from the letting agents regarding this review despite numerous requests.

(The lady I dealt with wasn't part of the lettings team so couldn't advise me when I went to sign....yes I know....I shouldn't have signed without proper guidance, but it was either sign there and then or lose the house)

I'm not able to call them and ask as I'm currently working unsocial hours, and so I'd like some advice about what this means.

Can they change the direct debit amount without giving notice? How much notice do they need to give?

Does a review actually mean it will be increased?

Can I object to an increase until my 3 years is up?

Many thanks.

If this is a residential property it's unlikely to be full 3 year assured shorthold tenancy...are you sure it's not also a break clause. Yes you can refuse the rent increase and the landlord can take action to terminate the tenancy according to the break clause. What exactly does the tenancy agreement state?

and...as said never pay by direct debit..cancel that and pay by standing order.

BitterAndTwisted

There's a slim chance that if the market has moved downward where the OP lives that the rent could be reduced. Slim chance, I admit.

Id I was in the OP situation I would be gathering all the info I could about the local rental-market to confirm that no or a low increase was warranted.

To be honest, if I had signed up to a three-year AST I would have wanted the rent to be maintained to reflect the length of the legally-binding commitment I was making if there was no break-clause in it.

G_M

HappyMJ wrote: »

If this is a residential property it's unlikely to be full 3 year assured shorthold tenancy...are you sure it's not also a break clause. Yes you can refuse the rent increase and the landlord can take action to terminate the tenancy according to the break clause. What exactly does the tenancy agreement state?

and...as said never pay by direct debit..cancel that and pay by standing order.

Why is it unlikely to be full 3 year assured shorthold tenancy?

We have no information- but there is no reason it cannot be.

Whether there is, or isn't, a break clause is irrelevant to the issue of rent review.

No, the tenant can NOT refuse the rent increase provided any rent increase is as specified in the contract.

I repeat, read:

Rent increases (how and when can rent be changed)

(but I agree - the OP should read the tenancy agreement)

[Deleted User]

Your rent is going up, prepare for it.

HappyMJ

G_M wrote: »

Why is it unlikely to be full 3 year assured shorthold tenancy?

We have no information- but there is no reason it cannot be.

Whether there is, or isn't, a break clause is irrelevant to the issue of rent review.

No, the tenant can NOT refuse the rent increase provided any rent increase is as specified in the contract.

I repeat, read:

Rent increases (how and when can rent be changed)

(but I agree - the OP should read the tenancy agreement)

Could be...but there aren't many mortgages written that allow 3 year tenancies....assuming the landlord has a mortgage.