New live-in landlord, existing tenants.

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    New live-in landlord, existing tenants.

    Hello Landlords,

    Last month I moved into an HMO property as a live-in landlord. With the property came three existing tenants.

    I've posted earlier in the forum with a previous question (http://www.landlordzone.co.uk/forums...cy-to-licensee). My understanding is that a tenancy cannot be changed from an AST (their current contract) to a licencee, regardless of any agreement.

    With this in mind, I would like to issue a new AST contract to the existing Ts, along with a rent increase to bring the rents up to market rate.

    Their current contract states that two months notice will be given to the Ts by the landlord if possession is required but does not stipulate a notice for rent increase.

    As a landlord am I required to issue a S21, waiting two months before issuing an AST or is it possible to verbally agree on a new AST with it coming into effect at the next monthly period?

    As the current contract doesn't have a rent increase clause I'm assuming this defaults to S13 stating one periods notice. The Ts have all rolled from a six month AST to a monthly statutory periodic tenancy. Is it possible to include the rent increase with the new AST or must it be done separately?

    Best,
    J

    #2
    Why don't you just issue a S13 and leave the SPT as it is?
    I offer no guarantee that anything I say is correct. wysiwyg

    Comment


      #3
      Remember, you can not impose a new tenancy agreement on your tenants. However, if they agree to new terms, then that can be at any rent you agree.

      Comment


        #4
        Originally posted by jta View Post
        Why don't you just issue a S13 and leave the SPT as it is?
        The contract has been signed between the previous landlord and the existing tenants. I assumed this would not be a valid contract between the Ts and I. If this isn't the case than I will go ahead and do this.

        Comment


          #5
          Originally posted by jww View Post
          The contract has been signed between the previous landlord and the existing tenants. I assumed this would not be a valid contract between the Ts and I. If this isn't the case than I will go ahead and do this.
          Usually a contract will bind existing landlord and any successor in title.
          [I]The opinions I give are simply my opinions and interpretations of what I have learnt, in numerous years as a property professional, I would not rely upon them without consulting with a paid advisor and providing them with all the relevant facts[I]

          Comment


            #6
            Thanks all. I will review the existing contract tonight.

            Best,
            J

            Comment


              #7
              My two cents, for what it's worth:

              Given that you are actually living with these folks, is it worth putting their backs up by asking for more rent? (They could make your life uncomfortable in a hundred little ways. On the other hand they may help in a hundred little ways if they think you are a nice person.)

              Why not wait until they move out, and put the rent up for any replacements.
              To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

              Comment


                #8
                Originally posted by jww View Post
                The contract has been signed between the previous landlord and the existing tenants. I assumed this would not be a valid contract between the Ts and I.
                You'll recall that in your previous thread I advised you that you had to serve notice under s.3 Landlord and Tenant Act 1985.

                Assuming you read the link to the Act provided as you claimed, you'd have seen that it says:

                3 Duty to inform tenant of assignment of landlord’s interest.
                (1) If the interest of the landlord under a tenancy of premises which consist of or include a dwelling is assigned, the new landlord shall give notice in writing of the assignment, and of his name and address, to the tenant not later than the next day on which rent is payable under the tenancy or, if that is within two months of the assignment, the end of that period of two months.


                "Assignment of landlord's interest" means the new landlord stepping into the shoes of the old landlord. The 'old' contract remains in place, but with the tenant informed (by the s.3 notice) of who his new landlord is.

                If you haven't served notice under s.3 (which remains unclear, because you quoted the notice served under s.48 but nothing about s.3), you'll have to do so before you serve a s.13 notice.

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