Looking to increase rent - Landlord Help!

Comms69

Joel_Goodsen wrote: »

The tenant is on Housing Benefit through the council. Not sure if that changes the game and my approach?

Well no, but obviously theyre less likely to have spare money

Pixie5740

How much of a rental increase are we talking here? I get that you're a landlord and you're a landlord to make money, we all need to earn a crust but it is easier from a tenant's perspective to put the rent up a little bit each year if the market rate is increasing in that area. When you don't increase the rent from years and then suddenly have a large jump, especially for someone claiming HB, chances are they won't be able to afford it.

Joel_Goodsen

Just to summarise;


Have a friendly chat. If she agrees to the rent increase, both sign some documentation to confirm the agreed new amount.



If she refuses or can't do it, I will have no choice but to give notice as this is my income. I would give the notice with a Section 21.


Does that sound correct?

Joel_Goodsen

Pixie5740 wrote: »

How much of a rental increase are we talking here? I get that you're a landlord and you're a landlord to make money, we all need to earn a crust but it is easier from a tenant's perspective to put the rent up a little bit each year if the market rate is increasing in that area. When you don't increase the rent from years and then suddenly have a large jump, especially for someone claiming HB, chances are they won't be able to afford it.

The rent is currently around £85 a month below what other same type properties are rented for. I haven't done a rent increase in 8 years and I was looking at £50 extra a month, which is still well below what it could command.

Comms69

Joel_Goodsen wrote: »

Just to summarise;


Have a friendly chat. If she agrees to the rent increase, both sign some documentation to confirm the agreed new amount.



If she refuses or can't do it, I will have no choice but to give notice as this is my income. I would give the notice with a Section 21.


Does that sound correct?

As long as you don't end up losing out more by evicting than not - yes.


Remember that even if the tenant stops paying rent (which granted most wont stop) you cant just chuck them out.

G_M

Joel_Goodsen wrote: »

Just to summarise;

Have a friendly chat. If she agrees to the rent increase, both sign some documentation to confirm the agreed new amount.

If she refuses or can't do it, I will have no choice but to give notice as this is my income. I would give the notice with a Section 21.

Does that sound correct?

No. That is not your only choice. As advised, you could increase the rent without their agreement either in line with the tenancy agreement, or via a S13. Just because they say they don't want it increased, does not mean they wouldn't pay if it were increased.


But yes, ultimately a 21 is an option. Make sure you get it right though! See
S21 checklist (Is a S21 valid?)


Though that will cost you money - depending on the rent increase you have in mind, it may cost more than leaving the rent unchanged.......

Comms69

Joel_Goodsen wrote: »

The rent is currently around £85 a month below what other same type properties are rented for. I haven't done a rent increase in 8 years and I was looking at £50 extra a month, which is still well below what it could command.

Whats the local housing allowance rate? Check your local council.

lookstraightahead

how much is the rent now?

saajan_12

Joel_Goodsen wrote: »

Just to summarise;


Have a friendly chat. If she agrees to the rent increase, both sign some documentation to confirm the agreed new amount.
- correct, the 'documentation' can be a simple 1 page / letter stating the agreement continues as before and the new rent amount.


If she refuses or can't do it, I will have no choice but to give notice as this is my income. I would give the notice with a Section 21.
- Then you'd suffer eviction costs, void, new tenant finding costs.. You could serve Section 13 notice (assuming your proposed increase is in line with your agreement.. it may limit annual increases). The tenant would then have to start paying the new rent after a notice period or challenge the increase, in which case an 3rd party would decide if its reasonable.

Does that sound correct?

You may be awarded all or part of your increase, which may be more economical for you than an eviction. If they say 0 increase, then you might want to proceed to Section 21 notice, if you still think you can get a new tenant paying the higher amount and the increase offsets the likely void.

Joel_Goodsen

Thanks everyone.

There is no mention of rent increase stipulations that I can or can not incease on the tenancy agreement.

One last question.....

On the Section 13 notice, does the new proposed rent date have to be the same date as on the initial tenancy agreement?