Increasing rent under an Assured Periodic Tenancy

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    Increasing rent under an Assured Periodic Tenancy

    I have just purchased a house at auction. The house is tenanted and I understand that the Tenant has resided in the property long-term and that her tenancy is an Assured Periodic Tenancy. I have several other properties which are let under Assured Shorthold Tenancies but I have not come across an Assured Periodic Tenancy before.

    There were 3 Form 4b’s within the legal pack which show previous rent increases as follows:

    A new rent of £81.00 per week, replacing the rent of £75.00 per week from October 2009
    A new rent of £104.00 per week, replacing the rent of £81.00 per week from March 2012 and
    A new rent of £112.00 per week, replacing the rent of £104.00 per week from January 2016

    As such, the rent being paid currently amounts to just over £485 per month. Other similar properties in the street rent out for £650 per month and it is therefore my intention to issue a Form 4 to the Tenant to increase the rent. Furthermore, I understand that if the Tenant does not accept the rent increase, that it would need to then be reviewed by a Tribunal but my question is, under an Assured Periodic Tenancy, am I entitled to immediately initiate raising the rent to £650 per month under the current Assured Periodic Tenancy?

    #2
    Surely you should have understood the implications of buying a poisoned chalice of this type before you paid for it?

    That is why I sell all poisoned chalices at auction.

    Comment


      #3
      I'm not sure what help your response is to me but thankyou for responding anyway. I'll leave it upto you if you want to expand on what you mean by 'poisoned chalice' ?

      Referring to my OP, I am simply asking if I am entitled to immediately initiate raising the rent to £650 per month under the current Assured Periodic Tenancy?

      Comment


        #4
        When did 'sitting T' first move in?

        Comment


          #5
          I don't know the answer to that sorry. I only found out that the Tenant had resided there for 'many years' by talking to one of the neighbours in the street. To clarify, I have bought the house at auction but I haven't got the keys yet.

          Does the length of time that she has lived at the property have some bearing on me being able to increase the rent or on the amount that I could increase it by?

          Comment


            #6
            Originally posted by MR M View Post
            I'm not sure what help your response is to me but thankyou for responding anyway. I'll leave it upto you if you want to expand on what you mean by 'poisoned chalice' ?

            Referring to my OP, I am simply asking if I am entitled to immediately initiate raising the rent to £650 per month under the current Assured Periodic Tenancy?
            You purchased a property with a sitting tenant in place Assured Tenancy / Secure Tenancy, that's why the current rent is so low.

            What legal advice did you get before purchased a property with a AT in place, you cant just increase the rent up willy nilly on a AT.

            Tenant will be able to challenge any rent increase via the Rent Assessment Committee.

            Where is the property E, W, Scotland or NI.
            Thunderbirds are go

            Comment


              #7
              The property is in England.

              I was aware that the property had a Tenant in place when I purchased it and that the Tenant had resided there for many years under an Assured Periodic Tenancy. I am also aware that should the Tenant not accept any rent increase that I might propose, that it would need to then be reviewed by a Tribunal. That is noted in the guidance notes on the back of the Form 4 where it also states:

              'The tribunal will consider your application and decide what the maximum rent for your home should be. In setting a rent, the tribunal must decide what rent the landlord could reasonably expect for the property if it were let on the open market under a new tenancy on the same terms'.

              As such, if the property were let on the open market, it would achieve £650 per month, hence the question in my original post.

              On reflection, perhaps my question should have been, under an
              Assured Periodic Tenancy, is there a limit on how much I can propose to increase the rent by or can I simply propose to increase it to open market value?

              Comment


                #8
                Originally posted by MR M View Post
                Does the length of time that she has lived at the property have some bearing on me being able to increase the rent or on the amount that I could increase it by?
                Yes - If the tenant (or their parent(s) have been there for many years.
                https://www.lexisnexis.com/uk/lexisp...ncies_overview

                Comment


                  #9
                  If the tenant moved in early enough then not only is this a tenancy for life with almost no chance of getting them out or of achieving anywhere near a market rent, but their family can succeed them in the tenancy.

                  If that's the case then I bet the previous owner couldn't believe his luck when you bought this.

                  Comment


                    #10
                    Originally posted by DPT57 View Post
                    If the tenant moved in early enough then not only is this a tenancy for life with almost no chance of getting them out or of achieving anywhere near a market rent, but their family can succeed them in the tenancy.

                    If that's the case then I bet the previous owner couldn't believe his luck when you bought this.
                    I understand all of that and I was aware of it when I bought the property for significantly below market value. All I am trying to establish is whether I am able to immediately initiate raising the rent to £650 per month under the current Assured Periodic Tenancy and if I am not, whether there is a limit on what amount I can propose to raise the current rent by.

                    Comment


                      #11
                      There's a limit if it's actually a Rent Act tenancy. Assured tenancy can be market rent.

                      Depends on any enforcable terms of the tenancy agreement, and when the last time the rent was raised or reviewed.
                      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


                        #12
                        Originally posted by nukecad View Post
                        Yes - If the tenant (or their parent(s) have been there for many years.
                        https://www.lexisnexis.com/uk/lexisp...ncies_overview
                        From what the OP posted "form 4b" its a Secure "Assured tenancy" and not a Protected "Regulated tenancy"

                        For England https://www.gov.uk/guidance/assured-tenancy-forms

                        OP needs to confirm is Where is the property is E, W, Scotland or NI And the date the tenant 1st moved in ?

                        Originally posted by MR M View Post

                        I understand all of that and I was aware of it when I bought the property for significantly below market value. All I am trying to establish is whether I am able to immediately initiate raising the rent to £650 per month under the current Assured Periodic Tenancy and if I am not, whether there is a limit on what amount I can propose to raise the current rent by.
                        NO

                        Any rent increase which would have to be served on correct form, the tenant right to challenge via Rent Assessment Committee.

                        Going on information form 4b OP posted in 1st post, any increase isn't going to be much.
                        Thunderbirds are go

                        Comment


                          #13
                          The property is located in England.

                          To clarify, the previous rent increase forms which were included within the legal pack were Form 4b's (not the Form 3b's referred to in 45002's previous post) and there were 3No. of them which showed previous rent increases as follows:

                          A new rent of £81.00 per week, replacing the rent of £75.00 per week from October 2009
                          A new rent of £104.00 per week, replacing the rent of £81.00 per week from March 2012 and
                          A new rent of £112.00 per week, replacing the rent of £104.00 per week from January 2016

                          I obviously accept that if I propose a new rent of £650 per month, the Tenant will almost certainly object to this and challenge it but I do not understand why I would not be entitled to propose £650 per month, particularly as the guidance notes on the back of the current Form 4 state:

                          "The tribunal will consider your application and decide what the maximum rent for your home should be. In setting a rent, the tribunal must decide what rent the landlord could reasonably expect for the property if it were let on the open market under a new tenancy on the same terms".

                          If there is some reason why I can not propose a rent of £650 per month then is there any limit on what amount I can propose to raise the current rent by?

                          Comment


                            #14
                            Originally posted by MR M View Post
                            guessThe property is located in England.

                            To clarify, the previous rent increase forms which were included within the legal pack were Form 4b's (not Form 3b's) and there were 3No. of them which showed previous rent increases as follows:

                            A new rent of £81.00 per week, replacing the rent of £75.00 per week from October 2009
                            A new rent of £104.00 per week, replacing the rent of £81.00 per week from March 2012 and
                            A new rent of £112.00 per week, replacing the rent of £104.00 per week from January 2016
                            On the figures you posted, at best your be lucky to get a a tenner per week increase via Rent Assessment Committee challenged by the tenant, which the T has done in the past...
                            Thunderbirds are go

                            Comment


                              #15
                              Originally posted by 45002 View Post

                              On the figures you posted, at best your be lucky to get a a tenner per week increase via Rent Assessment Committee challenged by the tenant, which the T has done in the past...
                              I don't understand why though, for the reasons stated in my Post #12 above?

                              Comment

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