Rent Increase Notification (with rent increase clause in TA)

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    Rent Increase Notification (with rent increase clause in TA)

    Hi- I am new to this forum and I have searched through other topics but not found the answer, I rent out a property which is a periodic tenancy (was an AST). The Tenancy agreement has a rent increase clause which states the rent will rise by RPI each year. I have not implemented this clause in 4 years but feel like I need to now - but my question is how do I notify the tenants? I know a Section 13 or Form 4 does not apply - but what do I have to do write a letter, tell them verbally, text e-mail?

    Thanks

    #2
    Originally posted by AnnCampo View Post
    I rent out a property which is a periodic tenancy (was an AST).
    I assume what you meant is that it was a fixed term assured shorthold tenancy, which has ended and is now a statutory periodic assured shorthold tenancy.

    1. Get the tenant's agreement, and they start paying the higher rent, you're done, or
    2. Serve a section 13 notice.

    The rent review clause in your tenancy agreement probably has no effect.
    I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

    I do not answer questions through private messages which should be posted publicly on the forum.

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      #3
      s13 has no effect if AST allows for a Rent Review.
      Just write to T that after 4 years of no rent increase, you will raise rent to £x pcm, afterI pcm from next due Rent date) which is lower than that permitted by agreed AST. Inc a 2 month s21 if oermitted.

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        #4
        Originally posted by mariner View Post
        s13 has no effect if AST allows for a Rent Review.
        For a contractual periodic tenancy, yes. For a statutory periodic tenancy, incorrect. Please have a read of the linked article in my previous response.
        I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

        I do not answer questions through private messages which should be posted publicly on the forum.

        Comment


          #5
          Right so the rent review clause in the original agreement does not carry over to the statutory periodic tenancy legally? Even thought the agreement they signed says it does, with this wording in it -

          1.7.8 Rent Increase 1.7.8.1 If for any reason the Tenant remains in possession of the Property, or the lawful tenant of the Property, for more than 12 months, then the Rent will increase once each year. 1.7.8.2 The first increase will be the first Rent Due Date more than 363 days after the commencement date. 1.7.8.3 Subsequent increases will be on the first Rent Due Date more than 363 days since the last rent increase.

          What's the point of having it in the agreement?

          Should I have got the tenant to sign a new contractual periodic tenancy after the first 12 months? The people who drew up the agreement for me did not advise that I needed to. I am not sure whether getting the tenant to sign a new agreement now will just get them wondering why? They are really good tenants and I don't want to rock the boat but they have not had an increase in 4 years and they did knock me down by £35.00 a month when they took the tenancy on. So I think they should be expecting a rise.

          Comment


            #6
            There's no point having that text in the agreement because of the case linked to by KTC (assuming it's binding).
            Many agreements have such text - including the one in the case being discussed - and which was found to have no effect.

            Whether or not the tenant is expecting a rent increase, you are free to agree one and use s13 to impose it.
            However, if your proposed increase is in line with the clause, they might find it more palatable.

            The quoted clause doesn't restrict the increase and you might find that the limit is to this year's RPI and not a cumulative RPI over 4 years.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #7
              Thanks everyone - very helpful. x

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