Increasing rent

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    Increasing rent

    Tenancy start date May 2020 in England. 6 month initial AST.
    My tenancy agreement says
    “The landlord may increase the rent after the first 52 weeks of the tenancy…..”
    Is there a specific form I should use?

    #2
    If the tenancy is now an SPT, and you want to be ever so formal (and impose the increase without any agreement), search for form 13 (which is called something else on the government's tenancy forms page).

    Otherwise, you just need to get the tenant to agree and start paying the new rent.
    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


      #3
      Thanks jpkeates, I looked at the form 13 but that’s for if you don’t have anything in your tenancy agreement with regard to a rent increase. Is there a pro forma for a rent increase if there is a condition in your TA?

      Comment


        #4
        There may be something on the NRLA website, but I don't know of a standard template.

        To be honest that clause doesn't seem to help you a lot, it stops you using a s13 notice (I'd wrongly assumed that because it said "may" you'd be able to) but doesn't actually help you with an increase any other way.
        Maybe another six month tenancy agreement with a new rent and that clause removed?
        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


          #5
          Thanks again. I think I’ll have to just write to them informing them of the increase. They’re under s21 and s8 for rent arrears. They decided to deduct from the rent , the cost of a repair bill to which I did not agree.

          Comment


            #6
            Originally posted by Berlingogirl View Post
            Thanks again. I think I’ll have to just write to them informing them of the increase. They’re under s21 and s8 for rent arrears. They decided to deduct from the rent , the cost of a repair bill to which I did not agree.
            Ah.

            They won't agree the increase, so it's more of a point being made.
            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
              If the fixed term has ended and it is now SPT, is it not the case that the rent review clause is of no effect and you can use s13?

              Or is yours a contractual periodic tenancy?
              Assume I know nothing.

              Comment


                #8
                I think the clause persists into any SPT, any date in the future is now "after the first 52 weeks of the tenancy".

                Unless the other wording of the agreement changes the meaning of this snippet, the clause simply precludes the rent being increased between the end of the initial six months and 12 months and enables an increase thereafter.

                As the increase isn't defined, it isn't sufficient in itself to use as a tenant's pre-emptive agreement to whatever increase the landlord wants and it precludes the use of a s13 notice.
                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


                  #9
                  Originally posted by jpkeates View Post
                  I think the clause persists into any SPT, any date in the future is now "after the first 52 weeks of the tenancy".
                  I think the clause is probably invalid (as it cannot control rent reviews after the fixed term is over).

                  https://painsmith.co.uk/rent-increas...dic-tenancies/

                  It has been thought that a clause in the agreement which set out a mechanism for increasing the rent, however abbreviated, would be sufficient to oust the provisions of section 13 and the clause would prevail.

                  In London District Properties Management Ltd v Goolamy [2009] EWHC 1367 (Admin) this view has been overturned. The High Court ruled that the prevailing view was inaccurate. Taking a literal view of section 5(3) of the Act the Court held that in a statutory periodic tenancy the provisions of section 13 would overrule any rent increase clause.
                  This only applies if it is an SPT, rather than a CPT.
                  Assume I know nothing.

                  Comment


                    #10
                    Originally posted by Hooper View Post
                    I think the clause is probably invalid (as it cannot control rent reviews after the fixed term is over).
                    I'm much less sure.
                    The wording (assuming it's all of it), doesn't control anything, other than stopping the landlord having a review in the first 12 months.
                    It doesn't control the increase, or define it, or even say that one will or must happen.
                    It seems to simply stop the landlord increasing the rent in months 7 through 12 of the tenancy (or 1 through 6 of the periodic tenancy, if you like).

                    Once 12 months have expired, it doesn't actually do anything at all, because in an SPT (again, assuming it is) the landlord can always increase the rent anyway.

                    However, it does seem to me to fail the test for the use of a s13 notice, because 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."

                    If the clause can't pass into the periodic tenancy, it's even more pointless because the landlord could increase the rent in (say) month 9.
                    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


                      #11
                      So, do you think I should send both a formal letter informing the tenants of a rent increase and a s13?

                      Comment


                        #12
                        Originally posted by Berlingogirl View Post
                        So, do you think I should send both a formal letter informing the tenants of a rent increase and a s13?
                        I hope that Hooper is right, and that the s13 notice can be used and would be valid.
                        A formal letter with the notice that confirms there's a rent increase in accordance with clause x of the tenancy agreement can't do any harm.
                        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


                          #13
                          Originally posted by Berlingogirl View Post
                          So, do you think I should send both a formal letter informing the tenants of a rent increase and a s13?
                          In practical terms, I can't see that it would hurt to send it even if it were challenged and deemed to be invalid.

                          I have no experience of the repossession process though and don't know the circumstances but is it possible that it would not look very good in court? A bit tit for tat or vengeful?
                          Assume I know nothing.

                          Comment


                            #14
                            Hooper the rent is £50 pcm below market rent and I’m going to increase it by £20 pcm so it’s still below market rent. I don’t think a challenge could be supported.

                            Comment


                              #15
                              Sorry I was not clear. I was referring to a challenge of the validity of the S13 on the basis suggested by JPK. Even if successful, what have you lost by issuing it?

                              I then wondered whether raising the rent immediately after issuing s21 and s8 might look bad in possession proceedings. But that's just a thought. I've no experience with such proceedings.
                              Assume I know nothing.

                              Comment

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