Rent increase -- Landlord

Kuni

I have only one rental property in Manor Park, E12, East London which I  am renting through a Letting Agent.

It is a three bedroom terraced house with two receptions, open plan kitchen/diner and upstairs and downstairs bathrooms.

We started letting through the letting agent in December 2016 with monthly rental of £1700.

After one year tenants requested reduction of rent and on their request we reduced to £1650 from December 2017.

There is NO change in the rent in the last nearly 9 years.

In the last nearly 9 years I have spent a lot of money on the property. 

Last year we decided to increase the rent to £2000 per month. The market value for similar property in this area in between 2200 to 2500.

We have served section 13 notice to increase the rent. Tenants have said that they do not want to increase to £2000 and they have now increased to £1750 ( which is £50 more from original rent in 2016).

 My question is should I serve them section 21 notice to leave the property or should I apply to First-tier Tribunal and let the tribunal decide the right amount of rent?

Thank you

saajan_12

Kuni said:

I have only one rental property in Manor Park, E12, East London which I  am renting through a Letting Agent.

It is a three bedroom terraced house with two receptions, open plan kitchen/diner and upstairs and downstairs bathrooms.

We started letting through the letting agent in December 2016 with monthly rental of £1700.

After one year tenants requested reduction of rent and on their request we reduced to £1650 from December 2017.

There is NO change in the rent in the last nearly 9 years.

In the last nearly 9 years I have spent a lot of money on the property. 

Last year we decided to increase the rent to £2000 per month. The market value for similar property in this area in between 2200 to 2500.

We have served section 13 notice to increase the rent. Tenants have said that they do not want to increase to £2000 and they have now increased to £1750 ( which is £50 more from original rent in 2016).

 My question is should I serve them section 21 notice to leave the property or should I apply to First-tier Tribunal and let the tribunal decide the right amount of rent?

Thank you

Last year you 'decided' but did you actually do anything (eg agree with the tenant / serve notice / sign a new fixed term)? Or was the first action that S13 notice? 

Regardless if the S13 was correctly served, then they are in rent arrears. The tribunal is for the tenant to contact if they disagree with the rent.

Send the tenant a rent statement showing the £2000 due since the S13 notice expired and the £1750 or whatever paid. State that payment needs to be made per the contract or further action including eviction will follow. Then once the arrears exceeds 2 months rent, then serve a S8 notice to evict. 

If they've been used to a low rent for 9 years and if the above actions dont' spur them into action, then the likelyhood is they won't be able to cover a competitive rent. 

YBR

This is all totally a matter of opinion.

Are the current tenants good tenants who look after the place? Do you want to risk the costs and hassle of a long eviction process, only to have a long void period and worse tenants when you find them?

Is your property really comparable with "similar" property, or has it a worse location, smaller garden, nightclub next door or some other factor?

ButterCheese

I found it useful to look up similar properties within the same postcode and use this as evidence.  i.e. somewhere of the same size, condition, facilities and send them the proces that other properties are asking for

FlorayG

You are entitled to increase the rent. If the tenant doesn't want to pay it then the tenant has to go to tribunal, not you. (If you are genuinely still under market rate even with the increase then the tribunal will find in your favour).
I would be informing the tenant that they are in arrears and if they don't agree with the new rent then they need to go to tribunal - bearing in mind that as the law stands at the moment, when the tribunal finds in your favour, they will still owe the arrears.
If you had increased to rent by 2% each year since the beginning they would hardly have noticed and you would now be getting over £2,000pm

UnsureAboutthis

It's too late for you, OP. However, any other Landlords reading this thread should always try to let via a good EA and have legal cover for things like this.

Kuni

Thank you all
Just checked, my letting agent sent Form 6A to the tenants in March 2025 and the deadline to vacate is 30/5/25. Its mentioned in the form if they don't vacate we will serve section 21 notice.

Also I googled and its mentioned that even Landlords can apply for First-tier Tribunal for the tribunal to decide what should be the right amount for the rent. I don't know how correct is this information.

Sorry I am not aware of these legalities, I bought this property to help me after my retirement. But it is becoming more complicated. 

saajan_12

Kuni said:

Thank you all
Just checked, my letting agent sent Form 6A to the tenants in March 2025 and the deadline to vacate is 30/5/25. Its mentioned in the form if they don't vacate we will serve section 21 notice.

This is very confused, and likely wrong. That likely was a Section 21 notice, it doesn't give a deadline to vacate, it just says after it expires you can go to court. You wouldn't serve another Section 21 notice, you'd actually apply to the court. 

I'd also caution its very easy to get a Section 21 wrong, theres a huge list of things to cover, and if they're confused enough to tell you the above then I wouldn't have high hopes. Plus it can take several months still for the court process, all the while you'll be getting reduced rent (if at all). 

Tell the agent to get the rent statement out asap. 

anselld

Kuni said:

Thank you all
Just checked, my letting agent sent Form 6A to the tenants in March 2025

Form 6A *is* a Section 21 notice so this makes no sense ....

Kuni said:

Its mentioned in the form if they don't vacate we will serve section 21 notice.

Bookworm225

as above, it appears your tenants have already been given a S21
whether you now decide to go to court to get an eviction on S21 grounds is up to you to decide. It wil then be for the court to decide if the S21 is valid - agents are notorious for having missed out actions and thus render the S21 invalid.

if you wish to go to court for o/s rental arrears then that is different grounds and will depend on the validity of your S13 notice and whether the tenants remain "underpaid" by the date of the court hearing 

theartfullodger

Kuni said:

My question is should I serve them section 21 notice to leave the property or should I apply to First-tier Tribunal and let the tribunal decide the right amount of rent?

Should you?? If you don't know why should we, please?? What makes you think s21 will be valid? - see e.g.
My question is should I serve them section 21 notice to leave the property or should I apply to First-tier Tribunal and let the tribunal decide the right amount of rent?

Does tenancy mention rent increases at all?? If so s13 would be invalid.

How have your costs gone up please?? Any particular reason for wanting to increase rent burden on these loyal tenants?? (In my 'umbly opinion a reliable tenant is worth A LOT..)

You'll appreciate an s21, even if valid (many many are not) does not end a tenancy nor compel tenant to leave.