How do I raise the rent please?

Malibusmash

My tenants, who have been in a 12 month fixed term AST (England) and whose tenancy ends on 21st June, wish to enter into another 12 month fixed term, which I am happy to do.

However, I wish to raise the rent slightly come 21st June and now fear I may have missed the 'two month' window to inform them of this - if there is such a thing on a fixed term ASA?

Is this the case, or because 'we' will be signing a completely new tenancy, do I just give them as much notice as possible and then issue the AST on 21st June this year? How do I do this legally?

dancingfairy

Say you'd like to sign a new contract with them but regrettably due to inflation, cost rising, etc etc you've had to put the rent up to x per month. They'll either sign it or not, or come back to you and try and negotiate.
df

Jon_B_2

That's all well and good, but there is no inflation and interest rates are at record lows? I'd be furious if my landlord raised rent after only a first year given the current economic climate.

G_M

No need for two months notice if they are signing a new contract.

Of course, they may decline to sign and simply move to a SPT.

You would then need to decide what to do:
a) accept this
b) evict (and bear the costs of void & re-marketing)
c) use process for raising rent in a SPT

* Rent increases: when & how can rent be increased?


* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

G_M

Jon_B wrote: »

That's all well and good, but there is no inflation and interest rates are at record lows? I'd be furious if my landlord raised rent after only a first year given the current economic climate.

Yes, but we'd need all the facts: was the original rent below market rate? What are current comparable rates in the area? etc

dancingfairy

If you don't sign a new contract then they will automatically go on to a rolling contract at the same rate.
Obviously if you want them to sign a new contract it would be sensible to give them time to read it/consider the rent increase etc so I would send a letter and new contract as soon as possible (asking them to sign and return it). Depending on your relationship it might be worth calling the tenants to discuss it as a letter out of the blue is a bit of a shock and you can try and soften the blue/explain things if you phone them and let them know you will be sending the letter/new contract but to call you if they'd like to discuss it.
Have you considered
a) what a fair increase is given the market
b) whether they can afford the increase
c) whether they are likely to pay the increase
d) whether you are prepared to negotiate or whether it is fixed.

If they don't want to sign a new contract you will have to decide whether it is better to keep them as tenants on a rolling contract, get them to sign a new contract but accept you can't increase the rate or you will have to get them to leave and get new tenants.
Hopefully the tenants won't be too upset if it is a small increase and is justified but it's worth bearing in mind if you end up kicking the tenants out/the tenants leave then you could be left with a void and this can easily wipe out any small increase in rent.

df

dancingfairy

Jon_B wrote: »

That's all well and good, but there is no inflation and interest rates are at record lows? I'd be furious if my landlord raised rent after only a first year given the current economic climate.

We have no idea if this was the first year or whether it was just a year and each year a new contract was signed. We also have no idea on the circumstances in the local area.
Yes, you might be annoyed (and possibly would want to move in principle) but bear in mind a lot of tenants will accept a small increase in rent due to the hassle and costs of moving, particularly if they are happy and settled and have a good relationship with the landlord.
It's a contract - the landlord says what they want and the tenant is free to sign that new contract or not (whether the rent increase is fair or justified or not).
df

jjlandlord

If you are both happy to create a new fixed term tenancy then simply set a higher rent in the new tenancy agreement.
Of course your tenant must agree so you should discuss it with them in advance of sending them the document for signature.

You may find the following article interesting:
https://lettingmate.uk/book/5-increasing-the-rent

Malibusmash

Thanks all, much appreciate your advice and comments.

ViolaLass

I wouldn't bother giving reasons for the change - they can be argued with. Just state that you want to put the rent up (as is your right). It's up to the tenant whether they accept/negotiate/move.

G_M

ViolaLass wrote: »

I wouldn't bother giving reasons for the change - they can be argued with. Just state that you want to put the rent up (as is your right). It's up to the tenant whether they accept/negotiate/move.

or move to a SPT at the original rent.