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AST agreement with no rent review clause ?

worn_out
Posts: 172 Forumite


Just renewed another 12 months and received the agreement to sign, but unlike all previous years agreements this one has no rent review clause for the end of the term..
I've queried with the agents and they've just told me "Near
to the end of your 12 month term, we would be in touch with you
regarding the renewal of the tenancy. At this point, the rent will be
reviewed and you will be asked for your intentions.". So why decide to remove this from the agreement, is there any significance in this or am I just being a bit neurotic ?
0
Comments
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You're being neurotic2
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Gives them slightly more flexibility on the amount they can impose if you go periodic.
They can propose whatever they llke for the next fixed term, you can accept, negotiate or reject. If you reject, you can leave or simply move to a periodic (rolling) tenancy at the old rent.
The LL can then if he wants serve a S13 to increase the rent.
In fact the same is true even if there IS a rent review clause. The LL can ignore it and propose whatever they want and you can accept negotiate or reject. If you reject, you can leave or simply move to a periodic (rolling) tenancy at the old rent.
The difference is that with a rent clause, the LL cannot use a S13 notice, but can increase the rent in line with the clause during the subsequent periodic tenancy.
More here:
Post 4: 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?
Post 5: Rent increases: when & how can rent be increased?
3 -
It’s common for ASTs not to have rent review clauses as it gives landlords the most flexibility.One thing to note is that if the landlord increases it to above the market rent using a s13 notice, the renter should have a good case to challenge it in a rent tribunal.Here’s more info on the ins and outs on rent reviews:
https://theindependentlandlord.com/rent-increase-landlords/2 -
Is there a 'register' of market rents which landlords always seem to be aiming at ? Who calculates it, and are the details freely available to have a look at ? I've had this quoted to me many times but when I ask how it's arrived at, which houses have been included I'm always met with a blank stare.. why the secrecy ?.
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worn_out said:Is there a 'register' of market rents which landlords always seem to be aiming at ? Who calculates it, and are the details freely available to have a look at ? I've had this quoted to me many times but when I ask how it's arrived at, which houses have been included I'm always met with a blank stare.. why the secrecy ?.Letting agents will have an idea of what they can let a property for based upon its type and location.Getting quotes from at least 3 local letting agents should give a good idea of the going rate or market rent for a particular property.1
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LegallyLandlord said:It’s common for ASTs not to have rent review clauses as it gives landlords the most flexibility.One thing to note is that if the landlord increases it to above the market rent using a s13 notice, the renter should have a good case to challenge it in a rent tribunal.Here’s more info on the ins and outs on rent reviews:
https://theindependentlandlord.com/rent-increase-landlords/0
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