Sitting Tenant - Rent Increase??

[newlandlord1]

Hi, I am set to be a new landlord shortly and am in the middle of buying a property that is currently inhabitted by a DSS tenant, who is a sitting tenant.
I was just wondering if (as he is a DSS and sitting tenant paying a set amount each month payed by the government) if I would be able to increase this rent, or will he be paying the same amount each month till he leaves the property??
Thanks for your time and feedback.

[davidjohnbutton]

If by "sitting tenant", you mean the tenancy is a regulated one, then you apply to the rent officer for a new fair rent every 2 years.

If you mean he is an assured or shorthold tenant, then rent increases will be in the latter case based on fresh contractual periods with a new rent - otherwise the process has to go through the Section 13 method of increase which means you serve a special notice on the tenant giving him a month's warning BUT under certain circumstances he can apply to have the rent restricted.

Your solicitor should be telling you all this as part of the purchase protocols!

[newlandlord1]

Thanks for the reply Davidjohnbutton. Yes by sitting tenant he is apparently legally able to stay in the property as long as he wants.
The government (dss) pay his rent each month. I was just wondering if I would be able to increase this or as you said, is reviewed every two years by dss people. Which I would hope would mean an increase.
Do you know if this happens automatically or would I have to arrange this to be reviewed??
Thanks in advance.

[Poppy]

Do you realise what you are buying and what the rights and responsibilities are of both the landlord and tenant? Have you done any research before putting your money on the table?

By the way, DSS has been superseded by Housing Benefit or HB for several years now.

[newlandlord1]

Yes I have researched into this and I wrote dss because more people understand what this.
I was simply after one question answered, hense the research coming to this forum...
I understand the tenant is legally entitled to stay in the property as long as he wants, but the fact he is 79 and I have purchased the property for £15,000 is quite a factor in the purchase.
If you know any other legallities then it would be appreciated rather than leaving replies that dont help me.

[Poppy]

Chill

Good, you’re relatively clued up. I was merely asking the questions that other silent readers are thinking about but don’t express on the forum. That’s the nature of public forums.

Other questions spring to mind relating to the tenant's age and health - but I won't go there today. Maybe someone else will...

[newlandlord1]

Thanks poppy, yes with regard to age and health, he is 79 and I think he is an alcoholic. Not the best situation but with the rent being paid guarenteed monthly by the council then hopefully this shouldnt be a problem.....

[MrShed]

And of course, at 79 you are fairly likely to regain possession of the property soon, and hopefully increased value!

Does he live by himself? Just be aware of the potential for "inheritance" of the tenancy if he does not!

[newlandlord1]

Hi, yes he lives by himself. Not sure on family. I really didnt realise the tenancy could be inherited??
How is this possible and is there any way of decreasing the chance of this happening??
Thanks for your help.

[lucid]

Assuming the tenancy referred to by the poster is a regulated one, below applies. But all that has been implied is that the sitting tenant has security of tenure, thus the tenancy in question may be a fully assured one. If The poster told us the date that the tenant 1st occupied the property then this point could be clarified.


The rules and regulations surrounding regulated tenancies are quite complex. Procedures have to be followed meticulously. Suggest you spend some time reading here and download the pdf for reference afterwards.

Then post again if you have any further questions.

http://www.odpm.gov.uk/index.asp?id=1151959

You have no control or influence whether the tenancy is or can be inherited, this is goverened by statute. If certain people move in and are resident for a time before the tenants death then they can inherit the tenancy. As far as I remember there can be 2 successions to the tenancy the 1st being a regulated one the 2nd fully assured. Each with full security of tenure.

Succession
If the tenant dies, does his or her family have to leave?
Not necessarily. Under the Rent Act 1977, as amended by the Housing Act 1988, the tenancy will pass to the tenants spouse, or someone living with the tenant as husband or wife, who will become a Rent Act statutory tenant provided he or she was living with the tenant at the time of his or her death. If there is no such person a member of the tenants family who has lived with the tenant for at least two years immediately before the death of the tenant1 will be able to succeed to an assured tenancy.

(These tenancies are explained in housing booklets Assured and assured shorthold tenancies: a guide for landlords and Assured and assured shorthold tenancies: a guide for tenants.) There can be no more than two successions. If there is a dispute between qualifying family members, the court can decide who shall succeed.

Can there be a second succession to a regulated tenancy?
Someone who was a member of the original tenants family immediately before his or her death and was living with the first successor at the time of, and for at least two years before, the death of the first successor has a right of succession to an assured tenancy. Should a person who has an assured tenancy by succession get married, on his or her death the surviving partner will not have an automatic right to take over that assured tenancy.

If a tenant dies within 18 months beginning on 15 January 1989, a member of the family who is a first successor who had been living with the tenant for at least six months before that date and up to the time of the tenant's death, will be treated as though he or she had lived with the tenant for the full two years. For a second succession, ie a family member taking over from a spouse, the same rules apply but the second successor must also have been a member of the original tenant's family.

[newlandlord1]

Thanks for all the replies, it helps to get as much info as possible.
Basically he was a tenant before 15th Jan 1989, which makes him a `protected' tenant. He is living there alone so, reading the last post, if he were to pass away, there would be no way of the tenancy being passed on??

[MrShed]

Probably not. But you should get expert advice on this.