What % to increase the rent ?

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    What % to increase the rent ?

    There is a box on the RLA form asking what will be the maximum percentage increase between rent reviews, what is a reasonable amount ?

    #2
    Originally posted by Hudson01 View Post
    There is a box on the RLA form asking what will be the maximum percentage increase between rent reviews
    I'd use a different form.

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      #3
      100% or more!

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        #4
        If you need to put something in I would suggest RPI + 1%. best not to be tied in though as really it depends on the local market.

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          #5
          RLA suggested 5% when they introduced that box following the TFA2019. I'm still not sure why they introduced it and didn't get a satisfactory answer from them at the time.

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            #6
            It's difficult to give a realistic % because what is realistic at the moment e.g. 5 over Bank of England base rate might be reasonable today, but if B of E base rate goes up to say 7.5% then the increase would be much higher. My daughter's tenancy agreement says something like 2% over CPI or Santander rate whichever is more.

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              #7
              I don't think anything is a reasonable figure and it would be better if the contract said nothing.
              It restricts the landlord without giving them anything back in exchange.
              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).

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                #8
                You absolutely must put a clause in that allows the rent to be increased otherwise you cannot increase it (jpkeates "it would be better if the contract said nothing") There are rules which currently say between 3 to 8% in line with inflation (according to my agent). Not sure what you mean by "between rent reviews" - you can only make an annual increase which would be a review. You can increase by more but that would mean a new tenancy term for which the tenant can no longer be charged

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                  #9
                  I must say I was surprised that David Smith recommended this addition to the model contract and I do wonder whether its a bit of corporate risk aversion.

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                    #10
                    Originally posted by jpkeates View Post
                    I don't think anything is a reasonable figure and it would be better if the contract said nothing.
                    It restricts the landlord without giving them anything back in exchange.
                    agree with this

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                      #11
                      Originally posted by Sarah B View Post
                      You absolutely must put a clause in that allows the rent to be increased otherwise you cannot increase it (jpkeates "it would be better if the contract said nothing") There are rules which currently say between 3 to 8% in line with inflation (according to my agent). Not sure what you mean by "between rent reviews" - you can only make an annual increase which would be a review. You can increase by more but that would mean a new tenancy term for which the tenant can no longer be charged
                      You can't increase the rent during the fixed term unless the contract says so.
                      But no one should be creating a contract with a fixed term of more than 12 months (ideally 6), so the issue of a rent review in the fixed term shouldn't ever arise.
                      As any terms about increases pass into any periodic contract that arises, there's no point restricting your options when you don't have to.
                      In what way is the landlord's position improved by having a term like this one rather than not having the term?

                      There are no rules about keeping percentages in line with inflation or for the percentage increases allowed (a particular agent might have their own internal rules).
                      A truly stupid increase might fail as an unfair term.

                      You can have reviews at any frequency you agree with the tenant, but annual is sensible.
                      You can't impose an increase using a s13 notice more frequently than annually.
                      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


                        #12
                        Originally posted by jpkeates View Post
                        You can't increase the rent during the fixed term unless the contract says so.
                        But no one should be creating a contract with a fixed term of more than 12 months (ideally 6), so the issue of a rent review in the fixed term shouldn't ever arise.
                        As any terms about increases pass into any periodic contract that arises, there's no point restricting your options when you don't have to.
                        In what way is the landlord's position improved by having a term like this one rather than not having the term?
                        It may make a little more sense for a CPT with a fixed Initial Term, which of course is what the RLA model now offers, although even then I haven't seen any convincing arguments for its inclusion.

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                          #13
                          I'd also avoid an agreement that creates a CPT - but that does mean that you would need some kind of increase mechanism, otherwise you're a bit stuck.
                          One of the reasons to avoid a CPT altogether.

                          In which case I'd limit it to "5% above inflation unless there are increases in interest rate when increases may be higher to reflect increased costs" or some other enabling mechanism,

                          But, the better outcome is to use a different tenancy agreement - no one really understands contractual periodic tenancies, because they're relatively uncommon.
                          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


                            #14
                            CPTs are now the default model for the two main landlord associations, but that is still only a few percent of the total lettings market.

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                              #15
                              Originally posted by DPT57 View Post
                              CPTs are now the default model for the two main landlord associations, but that is still only a few percent of the total lettings market.
                              That's really interesting to know, thanks.
                              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

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