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Change in Rent
katy123
Posts: 365 Forumite
My tenant has already completed his 12 month Assured Shorthold Tenancy (AST). The tenant is fast approaching month 24. I know there are 2 options when a tenant reaches the end of the AST which are:
1. Renew tenancy by issuing a new AST agreement (either same rent for another 12 months or different rent amount for another 12 months)
2. Let the AST roll into a ‘Periodic tenancy agreement’ which we did, as we wanted to give our tenant the flexibility to move out if he wanted to with 2 months’ notice considering his circumstance (going through divorce)
My question is whether we can:
A. Increase rent without renewing the tenancy (so allow it to be a periodic tenancy) without amending the insured deposit. The Deposit Protection Service (DPS) cannot confirm if changing the rent is what they define as a change in the tenancy particular. The only thing they can confirm is that changing an AST to periodic is not. (I’m sure I’ve read that there’s 3 ways to effect a rent increase 1. ‘Rent Increase agreement’ 2. Renew AST and 3. Serve S13.)
B. Increase rent with a new AST, but will we need to submit a new application to re-insure the same deposit. (although the rent will increase, we’re not going to ask the tenant for £30 more to make up the new 1 month rent amount).
Many thanks.
1. Renew tenancy by issuing a new AST agreement (either same rent for another 12 months or different rent amount for another 12 months)
2. Let the AST roll into a ‘Periodic tenancy agreement’ which we did, as we wanted to give our tenant the flexibility to move out if he wanted to with 2 months’ notice considering his circumstance (going through divorce)
My question is whether we can:
A. Increase rent without renewing the tenancy (so allow it to be a periodic tenancy) without amending the insured deposit. The Deposit Protection Service (DPS) cannot confirm if changing the rent is what they define as a change in the tenancy particular. The only thing they can confirm is that changing an AST to periodic is not. (I’m sure I’ve read that there’s 3 ways to effect a rent increase 1. ‘Rent Increase agreement’ 2. Renew AST and 3. Serve S13.)
B. Increase rent with a new AST, but will we need to submit a new application to re-insure the same deposit. (although the rent will increase, we’re not going to ask the tenant for £30 more to make up the new 1 month rent amount).
Many thanks.
0
Comments
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Keep flexibility for you of periodic by simply emailing saying rent is going up to £xxxx.
If he pays, fine: If not you decide what next0 -
My tenant has already completed his 12 month Assured Shorthold Tenancy (AST). The tenant is fast approaching month 24. I know there are 2 options when a tenant reaches the end of the AST which are:
1. Renew tenancy by issuing a new AST agreement (either same rent for another 12 months or different rent amount for another 12 months)
2. Let the AST roll into a ‘Periodic tenancy agreement’ which we did, as we wanted to give our tenant the flexibility to move out if he wanted to with 2 months’ notice considering his circumstance (going through divorce)
My question is whether we can:
A. Increase rent without renewing the tenancy (so allow it to be a periodic tenancy) without amending the insured deposit. The Deposit Protection Service (DPS) cannot confirm if changing the rent is what they define as a change in the tenancy particular. The only thing they can confirm is that changing an AST to periodic is not. (I’m sure I’ve read that there’s 3 ways to effect a rent increase 1. ‘Rent Increase agreement’ 2. Renew AST and 3. Serve S13.)
B. Increase rent with a new AST, but will we need to submit a new application to re-insure the same deposit. (although the rent will increase, we’re not going to ask the tenant for £30 more to make up the new 1 month rent amount).
Many thanks.
What artful said &:
Tenant gives 1 months notice in a statutory periodic tenancy0 -
Your tenant needs to give at least 1 month's notice to end a SPT it's you that needs to serve 2 month's notice.
PI also has to be re-issued at the start of a SPT. As for re-issuing PI for a rent increase I don't seem any harm in doing it. Better safe than sorry.0 -
As the tenant is already on periodic tenancy, you can serve a section 13 notice to increase the rent, or mutually agree to raise the rent.
However, as pointed out above, the tenant only needs to give at least 1 months notice to leave.*Assuming you're in England or Wales.0 -
If your tenant is happy to pay the new rent increase, then they simply pay the new amount, and that is that.
If you want the security of a new fixed term, then go with that. You are renting for your benefit, not his.
Do not do anything new with the deposit. You are making all sorts of trouble by collecting an extra £30 deposit.
The tenant has to give "at least" a months notice that expires at the end of a rental period.
The statement "The tenant has to give a months notice" is incorrect.Well life is harsh, hug me don't reject me.0 -
If your tenant is happy to pay the new rent increase, then they simply pay the new amount, and that is that.
If you want the security of a new fixed term, then go with that. You are renting for your benefit, not his.
Do not do anything new with the deposit. You are making all sorts of trouble by collecting an extra £30 deposit.
The tenant has to give "at least" a months notice that expires at the end of a rental period.
The statement "The tenant has to give a months notice" is incorrect.
Explain how that statement is incorrect?0 -
Come on guys, what';s all this "month" business: It might only be 28 days (eg if weekly, fortnightly or 4-weekly periods..)
Cheers!0 -
theartfullodger wrote: »Come on guys, what';s all this "month" business: It might only be 28 days (eg if weekly, fortnightly or 4-weekly periods..)
Cheers!
it's not two months either way 0 -
Explain how that statement is incorrect?
Saint is correctly pointing out that the notice (for monthly tenancies..) must be AT LEAST 1 month expiring (he says..) on the last day of the period or (case law says also..Crate v Miller
- 1947 ) the 1st day of the tenancy.
However in my experience many tenants think...
a) Only 1 month needed and ...
b) Only need to serve it (perhaps have to serve it) on the 1-month to go deadline....
The individual landlord has to decide what to do about that, if anything
Equally some landlords think they just have to serve any old notice of 2 months any old way (txt, email, smoke-signals..) and then get upset when the tenant does not leave...
Were that all persons reasonable, flexible, calm & polite:0 -
theartfullodger wrote: »Saint is correctly pointing out that the notice (for monthly tenancies..) must be AT LEAST 1 month expiring (he says..) on the last day of the period or (case law says also..Crate v Miller
- 1947 ) the 1st day of the tenancy.
However in my experience many tenants think...
a) Only 1 month needed and ...
b) Only need to serve it (perhaps have to serve it) on the 1-month to go deadline....
The individual landlord has to decide what to do about that, if anything
Equally some landlords think they just have to serve any old notice of 2 months any old way (txt, email, smoke-signals..) and then get upset when the tenant does not leave...
Were that all persons reasonable, flexible, calm & polite:
Agreed with all of the above. It's 1 month when done correctly.0
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