Want to increase rent with new lease

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  • Want to increase rent with new lease

    My tenants have 2 weeks left on current lease. Their monthly payments include the rent at a certain amount plus an extra amount which I use to pay the council tax. For last few years I have not passed on increases in the council tax to them but I would like to do it at this renewal of the lease (10th March). How much notice must I give them of the increase i.e. is it too late to tell them that i will be increasing the amount they pay for the council tax which I pass on (the rent is staying the same). Only I mentioned it to one of them and they said that I had not given them enough notice. We are only talking about £40pm between the 4 of them...

    Thanks in advance.

  • #2
    The simplest thing is to draw up a new AST where Council Tax is the responsibility of the tenants directly with the LA. Then if there is any arrears of rent if & when they were unable to pay the full amount and you couldn't pass on that proportion of the CT, the LA would not be able to pursue you, whereas they can at the moment as you carry the can.
    The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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    • #3
      Thanks for that.
      There is no arrears on the council tax - I have been paying it since I wrote in the lease I would be. Its just that I did not pass the increase in council tax on to them when I issued the last Lease. That was my fault and so I paid the council tax and theer is no issue there.
      The question is that now the lease is up for renewal in 10 or so days, can I change the amounts on the NEW lease or is there a certain amount of notice i should have given them before making any increases.

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      • #4
        Originally posted by FrankieFive View Post
        Thanks for that.
        There is no arrears on the council tax - I have been paying it since I wrote in the lease I would be. Its just that I did not pass the increase in council tax on to them when I issued the last Lease. That was my fault and so I paid the council tax and theer is no issue there.
        The question is that now the lease is up for renewal in 10 or so days, can I change the amounts on the NEW lease or is there a certain amount of notice i should have given them before making any increases.
        No notice is required to increase the rent in a new AST agreement.
        Dial 999 For a Landlord

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        • #5
          Originally posted by Krispy View Post
          No notice is required to increase the rent in a new AST agreement.
          ...because it's not a rent increase (the term signifying a change to an existing letting's existing rent) but a new letting at a new rent.
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

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