Rental Increases - laws on this

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Rental Increases - laws on this

    I have had tennants in my property for 12 months now and their original 12 month contract had the rent fixed for the first 6 month and then a slight increase for the next 6 months.

    They now want to sign for another 12 months but I have been told I can't put the rent up for another 6 months as it cannot go up twice in a 12 month period.

    Is this correct, I was under the impression that a new agreement (which this will be) can start the rent at any agreed level.

    Any advice greatfully appreciated.

    #2
    Why in the first place do you feel you need to raise the rent?

    Comment


      #3
      It was set very low to start off with with a small increase after 6 months to get closer (but still lower) than the average in the area.

      Now I have updated the property with new double glazed windows, a new kitchen and carpets throughout, I would therefor like the next 12 month contract to just be at the average for the area, when I talk about increases, i'm talking £20 per month. I am not trying to cripple the tenants in any way.

      Comment


        #4
        More information needed:
        1. Is there anything within your tenancy agreements to say when rent reviews (increases) will occur?
        2. If there is then anything more often than once a year it is likely to be considered unfair according to the OFT guidelines.
        3. If you don't have anything in the agreement then your first increase after 6 months was unsustainable i.e. unfair, and any increase you might want to impose after 12 months would then necessitate your having to serve a S.13 Notice on Form 4B which you can download for free from www.dclg.gov.uk/housing.
        You might want to put S.13 into the search facility and you will find many more answers on this subject.
        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.

        Comment


          #5
          Thanks Paul,

          The first 12 month agreement did have a provision for an increase after 6 written into it so was all agreed.

          What I am confused about now is that by offering another 12 month contract now, can it be at a new level (for the next 12 months) or does the rent have to stay at the old level for the next 6.

          Personally I thought that a new agreement was just that, new and therefor an agreed figure can be put into this.

          Comment


            #6
            My personal opinion is that landlords should only let out their properties in tip top condition and agree the rent from the outset at the market level - there should be no need to mess around with the rent more often than every 12 months, landlords simply earn themselves a bad name by doing this.
            Last edited by Poppy; 03-08-2006, 09:49 AM. Reason: !

            Comment


              #7
              Poppy,

              I agree with you totally, and that is the situation I want to get into now, whereby they will be renting a property in top condition at a rent that is fixed and in their contract for the next 12 months.

              I just don't don't know if i'm allowed to or not, and if i'm not then the contract will be written to change it in December which again, gets quite messy!!

              Comment


                #8
                Originally posted by Steve_wright_uk

                The first 12 month agreement did have a provision for an increase after 6 written into it so was all agreed.Just because it was agreed between you and the tenant doesn't mean it was justified

                What I am confused about now is that by offering another 12 month contract now, can it be at a new level (for the next 12 months) or does the rent have to stay at the old level for the next 6. You don't need to have a new agreement as it can go periodic without anybody doing anything, but if you want to have one it's up to you. You should really let your tenants have another 12 months at the current rent to rectify your increase 6 months ago, and perhaps put up the rent this time next year.

                Personally I thought that a new agreement was just that, new and therefore an agreed figure can be put into this.A common mistake - just because you put something into a tenancy agreement doesn't make it valid always
                Try downloading the Unfair Terms in Consumer Contract Regulations and see what I mean - http://www.oft.gov.uk/NR/rdonlyres/3...2/0/oft381.pdf
                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.

                Comment


                  #9
                  Thanks Paul,

                  I'll have a read!!

                  Comment

                  Latest Activity

                  Collapse

                  Working...
                  X