Section 13 confusion with periodic tenancy

tallac

In summary:

1. I'm the landlord and the tenant is coming up to the end of the first year of the AST.
2. I wish to increase the rent due to inflation and cost of living.
3. To be a little less impactful, I've decided that the tenancy can continue as periodic for a few months at the old rent price. New higher amount will start thereafter as a new tenancy agreement.

Question is, if the tenant does not want to renew their tenancy agreement and would prefer to stay on a periodic tenancy. How do I manage the increase?

Do I have to send the tenants a section 13? (and is this even if they have verbally agreed to the rent increase)?

theartfullodger

Easiest is an informal exchange over increase - eg by email - you to T "Rent going up to £1234:56/month, I need a better holiday": T to you "OK seems a bit greedy".  If T then starts paying then that's agreed, can't go back to old rent. No other formality required.

If you have to go the s13 route (which usually means T will appeal, as they have every right" then simply issue the s13 notice & see what happens. 

Is there ANYTHING in tenancy agreement about rent increases?? (If so s13 almost certainly not possible).

propertyrental

tallac said:

In summary:

1. I'm the landlord and the tenant is coming up to the end of the first year of the AST.
2. I wish to increase the rent due to inflation and cost of living.
3. To be a little less impactful, I've decided that the tenancy can continue as periodic for a few months at the old rent price. New higher amount will start thereafter as a new tenancy agreement.

Question is, if the tenant does not want to renew their tenancy agreement and would prefer to stay on a periodic tenancy. How do I manage the increase?

Do I have to send the tenants a section 13? (and is this even if they have verbally agreed to the rent increase)?

What, if anything, does your tenancy agreement say about rent increases? If there is a clause
a) you cannot use S13
b) you can only use that clause unless
c) you mutually agree something different with the T

3) above suggests you believe the choice is yours. It's not. The T can insist on a periodic tenancy and does not subsequently have to agree to a new TA.

See also
Post 5: Rent increases: when & how can rent be increased?

tallac

To answer some questions, no rent clause in contract. Even with the rent increase, the property would still be below equivalent market rate for the local area. Sounds like I can use a section 13.

What if the tenant says they want to stay on the periodic tenancy and will pay the increased rent at the end of the grace period. I then wouldn't need to issue a section 13 because the rent is mutually agreed. But at the end of the grace period, they withdraw their agreement to the increased rent. Does that mean I have to issue a section 13 and have to wait another whole month before that rent increases?

propertyrental

If they agree a new rent they cannot 'withdraw' their agreement. Of course, if the agreement is confirmed in writing it removes any possibility of later disagreement ("We never agreed to that").

macman

Pedant's corner: the tenant does not have to 'insist' on a periodic tenancy. If they refuse to sign a new contractual tenancy then it becomes periodic by default at the expiry of the fixed term.