"How to" question from first time poster.

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  • colchesterbaby
    started a topic "How to" question from first time poster.

    "How to" question from first time poster.

    Please forgive my naivety in asking this question
    My father passed away six years ago and left me the family home (a small two bed semi) I decided to rent it out to supplement my income, I had a rent agreement drawn up by a letting agent and they completed there part of the deal by finding me a tenant, fast forward six years and I would like to increase the rent, there has been no rent increase for six years, I am unsure how to do this so would appreciate some advice, is it as simple as phoning the tenants up and setting a new rent, do I need to put it in writing or do I have to involve a solicitor, the tenants have a strong personality and do intimidate me so, I'm not so confident in dealing with them so would like some advice, as a side note when the letting agent drew up the contract they set a rent rise limit of 10% a year, the rent is £124 per week, and I thought about an increase of £6 per week.
    Thank you for any advice
    Jackie

  • DPT57
    replied
    If you are managing this property yourself you might want to do some training as the legislation governing tenancies has changed significantly over the period you've had the house and it is possible for unsuspecting landlords to get themselves into a lot of trouble if they inadvertently do the wrong thing.

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  • wfd_property
    replied
    All good. You'd be surprised how many people overlook the land registry, which then causes them issues down the line.

    Good luck planning the increase.

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  • colchesterbaby
    replied
    Yes to both questions WFD

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  • wfd_property
    replied
    Originally posted by colchesterbaby View Post
    Please forgive my naivety in asking this question
    My father passed away six years ago and left me the family home (a small two bed semi) I decided to rent it out to supplement my income,
    As an aside, has the property been registered in your name, please?

    Have you been declaring the rental income received to HMRC?

    Leave a comment:


  • jpkeates
    replied
    It was belt and braces.

    The mechanism is there, but it's previously been ignored.

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  • theartfullodger
    replied
    Originally posted by jpkeates View Post
    On the next contract anniversary, I'd simply write to the tenants and advise them that, in line with s9.2.1 of their tenancy agreement the rent is going to be increased to whatever.

    I'd remind them that you have forgone several years contracted increases, but it is time for the rent to be brought in line with the market.

    Include a s13 notice with the same rent, as that formally increases the rent.
    Problem is (although tenant probably won't realise..) that as the tenancy has clause covering rent increases, s13 form does not apply.
    9.2 Rent Review

    9.2.1 It is agreed that the rent as defined in this Agreement will be reviewed in an upwards only fashion on the anniversary of this tenancy and upon each subsequent anniversary in line with the Retail Price Index (RPI) increases for the previous 12 months and subject to a minimum of £5.00 per calendar month or 3%, whichever is the greater.
    see...s13(1)(b)
    http://www.legislation.gov.uk/ukpga/1988/50/section/13
    13 Increases of rent under assured periodic tenancies.

    (1) This section applies to—

    (a) a statutory periodic tenancy other than one which, by virtue of paragraph 11 or paragraph 12 in Part I of Schedule 1 to this Act, cannot for the time being be an assured tenancy; and

    (b) any other periodic tenancy which is an assured tenancy, other than one in relation to which there is a provision, for the time being binding on the tenant, under which the rent for a particular period of the tenancy will or may be greater than the rent for an earlier period.

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  • jpkeates
    replied
    On the next contract anniversary, I'd simply write to the tenants and advise them that, in line with s9.2.1 of their tenancy agreement the rent is going to be increased to whatever.

    I'd remind them that you have forgone several years contracted increases, but it is time for the rent to be brought in line with the market.

    Include a s13 notice with the same rent, as that formally increases the rent.

    Leave a comment:


  • colchesterbaby
    replied
    Thank you Ram

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  • colchesterbaby
    replied
    Hi JP, thank you for your reply, it took some finding, and apologises for my poor memory on the %, but this is the wording from my tenancy agreement

    9.2 Rent Review

    9.2.1 It is agreed that the rent as defined in this Agreement will be reviewed in an upwards only fashion on the anniversary of this tenancy and upon each subsequent anniversary in line with the Retail Price Index (RPI) increases for the previous 12 months and subject to a minimum of £5.00 per calendar month or 3%, whichever is the greater.

    Leave a comment:


  • ram
    replied
    For form to request rent increase is on here.

    Go to
    https://www.landlordzone.co.uk/documents
    Half way down ( mid-term docs )
    add email address and link sent to it so you can download.

    Tenant has to agre to rent increase.

    If they do not agree, then your choice to evict, or let them stay.

    Leave a comment:


  • jpkeates
    replied
    The tenancy agreement wording is going to be important.

    What does it say exactly about rent increases?

    Leave a comment:

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