AST rent increase- amount/procedures/form?

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    AST rent increase- amount/procedures/form?

    I want to increase rent on a property but don't know by how much I can increase rent by. Tenancy Agreement is periodic, therefore I think I have to wait until Januay, as when I issued Agreement it began/expired January. Some Agreements do state that I can increase rent but not by how much, other Agreements say nothing about rent increase.

    Thanking you all in advance.

    #2
    The going rate i think is 5% max and you have to give a months notice.
    Please note i may be in pumpkin mode, the light might be on but i may not be here

    Comment


      #3
      You can increase the rent by any amount you wish, but do bear in mind that if you push it too far, then you may lose your tenant.

      You will need to issue a S.13 notice, and you can only increase the rent once in any 12 month period.

      Your other option, is to bring the current AST to an end via a S.21 notice then offer the tenant a new AST ( with any revised terms/rent payments )
      But again, you may risk losing the tenant by issuing the notice.

      Check the market rents for the type of property/area before going any further.

      Comment


        #4
        but you only need issue a S13 if there is no provision in the tenancy agreement for a rent increase. I normally increase rents by approx 3-4% but like Colin says you can do any amount but risk losing a good tenant if you increase it too much. I always look at the market and ask "could the tenant find a similar property cheaper and if so would they want to hassle of moving".

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          #5
          Originally posted by Poppy35 View Post
          but you only need issue a S13 if there is no provision in the tenancy agreement for a rent increase. I normally increase rents by approx 3-4% but like Colin says you can do any amount but risk losing a good tenant if you increase it too much. I always look at the market and ask "could the tenant find a similar property cheaper and if so would they want to hassle of moving".
          So if there is provision in the tenancy agreement for a rental increase, mine says.....

          "The monetary amount of the Rent payable is to be reviewed/increased at the end of the Term of this Agreement or within 12 months following the last review/increase. The Landlord or the Landlords Agent will give the Tenant a minimum of four weeks notice, in writing, confirming the alteration to the amount of the Rent payable by the Tenant and the date from which the alteration will take place. The Tenant shall pay the new amount from that date onwards"......

          although mine says in writing, what is the correct method of notifying the tenant? Is a letter ok or is there an alternative to an S13

          Comment


            #6
            Originally posted by MR M View Post
            So if there is provision in the tenancy agreement for a rental increase, mine says.....

            "The monetary amount of the Rent payable is to be reviewed/increased at the end of the Term of this Agreement or within 12 months following the last review/increase. The Landlord or the Landlords Agent will give the Tenant a minimum of four weeks notice, in writing, confirming the alteration to the amount of the Rent payable by the Tenant and the date from which the alteration will take place. The Tenant shall pay the new amount from that date onwards"......

            although mine says in writing, what is the correct method of notifying the tenant? Is a letter ok or is there an alternative to an S13
            In your case, a letter is OK.
            See new thread re s.13 case reported TODAY.
            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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              #7

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                #8
                Yes. As you are not creating a new AST.

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                  #9

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                    #10
                    I wouldn't bugger about with trying to get any extra deposit out of them. With my own, I leave the deposit as is when I increase the rents.

                    Comment


                      #11
                      Originally posted by Colincbayley View Post
                      I wouldn't bugger about with trying to get any extra deposit out of them. With my own, I leave the deposit as is when I increase the rents.
                      Thank you very much, your help is very much appericiated. I suppose S13 notice one month before the increase is what I'll need to do.

                      Comment


                        #12
                        Originally posted by satwant View Post
                        Thank you very much, your help is very much appericiated. I suppose S13 notice one month before the increase is what I'll need to do.
                        Depending on your relationship with your tenants, I find it is always best to talk it over with them beforehand.

                        Just let them know that the market rent has increased by X amount over the last 12 months and that there have also been 5 increases in the mortgage base rate.
                        I then tell them that I always try and keep rents as low as possible and that there rent will only be increasing by X amount. Then follow this up with either your letter or a S.13.

                        I think you will find a lot more tenants will accept an increase if they are pre-warned and know why you are putting the rent up, rather than just receiving a letter/notice out of the blue.

                        Just my thoughts on the matter.

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                          #13
                          Nope. Keep the deposit as it is. If you start asking for top-ups you will need to get involved with our friends the DPS.

                          Comment


                            #14
                            Hi Colin

                            Would you or anyone else be able to send me a blank template for section 13 notice? Have gone into gov website but not in a good format for editing with specific details and sending out to tenant.

                            Many thanks!

                            Comment


                              #15
                              Originally posted by sammy07 View Post
                              Hi Colin

                              Would you or anyone else be able to send me a blank template for section 13 notice? Have gone into gov website but not in a good format for editing with specific details and sending out to tenant.

                              Many thanks!
                              Use LandlordZONE. Click on "Agreements" and go down list of forms there.
                              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).

                              Comment

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