question about rent increase

cidfenmaria

The Assured Shorthold tenancy Agreement of my rental property ended a few years ago, the tenant have been staying since. The rent wasn't increased since then. The original agreement does not mention anything about rent review. If now I inform the tenant of rent increase do I still need the Tenancy form 4 formally? Or a new agrement instead. I read somewhere that there is a limit of increase. Is there any limit I can increase in my case?

Thanks

dell12

You can just ask them to sign a new 12 month AST at a higher rent (assuming the tenant agrees).

I tend to find this works quite well. You get the higher rent and the tenant gets 12 months of security and the knowledge you won't increase the rent again for a year.

cidfenmaria

Thanks will you normally discuss with the tenant about the new AST first before getting it done from the solicitor?

RHemmings

First, what part of the country are you in? The following assumes: England.

Second, the AST hasn't really ended. Just that the fixed term AST will have converted automatically into a rolling AST with no specific end date. 

You can negotiate a new fixed-term AST with your tenant at an increased rent. Or, you can issue an S13 notice for the increased rent. The rent proposed shouldn't be more than the market rent for that property in that area. If the tenant wishes, they can appeal the rent increase, but typically the new rent will be allowed unless it is seen as more than the market rent. (Sometimes the tribunal will actually decide on a rent more than the landlord's requested rent.) Note that the tenant will most likely continue paying the previous rent until the tribunal gives its decision, but if a rent increase is agreed, then the tenant will have to pay the additional rent back to the date the rent would have initially gone into action. 

https://england.shelter.org.uk/housing_advice/private_renting/rent_increases/periodic_tenancy

Note again: This assumes England. 

_Penny_Dreadful

cidfenmaria said:

The Assured Shorthold tenancy Agreement of my rental property ended a few years ago, the tenant have been staying since. The rent wasn't increased since then. The original agreement does not mention anything about rent review. If now I inform the tenant of rent increase do I still need the Tenancy form 4 formally? Or a new agrement instead. I read somewhere that there is a limit of increase. Is there any limit I can increase in my case?

Thanks

You can do either. The Section 13 notice would be easier from your point of view because you don’t require the tenant to sign anything nor are you required to reissue any prescribed information. Depending on your relationship with the tenant you may wish to have a conversation with them first before issuing the notice. 

You can only increase the rent using a Section 13 notice once every 12 months. 

cidfenmaria

RHemmings said:

First, what part of the country are you in? The following assumes: England.

Second, the AST hasn't really ended. Just that the fixed term AST will have converted automatically into a rolling AST with no specific end date. 

You can negotiate a new fixed-term AST with your tenant at an increased rent. Or, you can issue an S13 notice for the increased rent. The rent proposed shouldn't be more than the market rent for that property in that area. If the tenant wishes, they can appeal the rent increase, but typically the new rent will be allowed unless it is seen as more than the market rent. (Sometimes the tribunal will actually decide on a rent more than the landlord's requested rent.) Note that the tenant will most likely continue paying the previous rent until the tribunal gives its decision, but if a rent increase is agreed, then the tenant will have to pay the additional rent back to the date the rent would have initially gone into action. 

https://england.shelter.org.uk/housing_advice/private_renting/rent_increases/periodic_tenancy

Note again: This assumes England. 

Yes rolling AST that's what I meant so in such situation I need to give one month notice if I wish to end the tenancy and this has nothing to do with whether I have given Section 13 notice, is that right

cidfenmaria

_Penny_Dreadful said:

You can do either. The Section 13 notice would be easier from your point of view...

Thanks for the advise, is emailing the form treated as a valid procedure? Or maybe even tenant agreeing without any form being sent? In that case can the email converstaion be accepted as a record?

_Penny_Dreadful

cidfenmaria said:

_Penny_Dreadful said:

You can do either. The Section 13 notice would be easier from your point of view...

Thanks for the advise, is emailing the form treated as a valid procedure? Or maybe even tenant agreeing without any form being sent? In that case can the email converstaion be accepted as a record?

Does the original tenancy agreement say that notices can be served by email? 

Mutual agreement between you and the tenant is  another valid way of increasing the rent. 

propertyrental

cidfenmaria said:

RHemmings said:

First, what part of the country are you in? The following assumes: England.

Second, the AST hasn't really ended. Just that the fixed term AST will have converted automatically into a rolling AST with no specific end date. 

You can negotiate a new fixed-term AST with your tenant at an increased rent. Or, you can issue an S13 notice for the increased rent. The rent proposed shouldn't be more than the market rent for that property in that area. If the tenant wishes, they can appeal the rent increase, but typically the new rent will be allowed unless it is seen as more than the market rent. (Sometimes the tribunal will actually decide on a rent more than the landlord's requested rent.) Note that the tenant will most likely continue paying the previous rent until the tribunal gives its decision, but if a rent increase is agreed, then the tenant will have to pay the additional rent back to the date the rent would have initially gone into action. 

https://england.shelter.org.uk/housing_advice/private_renting/rent_increases/periodic_tenancy

Note again: This assumes England. 

Yes rolling AST that's what I meant so in such situation I need to give one month notice if I wish to end the tenancy and this has nothing to do with whether I have given Section 13 notice, is that right

No. Two calender months notice by serving a S21 notice.

As advised there are 3 rent options

1) mutual agreement. This does not even need to be written down - if the T starts to py the new rent it is legally assumed they have accepted the new rent which is then binding

2) brand new contract (tenancy agreement) with new fixed term (6? 12? 24? months) and new rent. T must agree.

3) S13 notice

See also

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

R200

Now the new renters rights bill has come in you
can threaten the LL with first tier tribunal.

if you the tenant loses then the rent stays the same but if you win the rent goes down.

plus it’s free for you everytime you contact the tribunal but it costs the LL, he has to pay for it every single time.

things very clever it puts emphasis on the LL to try to keep tenants happy 

RHemmings

R200 said:

Now the new renters rights bill has come in you
can threaten the LL with first tier tribunal.

if you the tenant loses then the rent stays the same but if you win the rent goes down.

plus it’s free for you everytime you contact the tribunal but it costs the LL, he has to pay for it every single time.

things very clever it puts emphasis on the LL to try to keep tenants happy 

Which bill is this? The Renter's Rights Bill that I'm familiar with is still a long way off coming into effect. 

https://bills.parliament.uk/bills/3764