PDA

View Full Version : rent increase.



L123
08-05-2007, 12:57 PM
Hi

I have just created a fixed 3 month contract for a new tenancy. However once the fixed contract ends i do not want to continue it as a periodioc contract but i am intending on creating a new contract if the tenants wish to stay on.

But in the new contract i would like to incease the rent. I would like to know what notice period do i need to give? Is 1 months notice sufficient or do i have to give 2 months?

There is nothing in the AST contract regarding rent increase. Do i need to issue a section 13 notice cos as far as i am aware this notice is for periodic tenancies?

Would a letter which includes the details of the tenancy and says ......"if you would like to renew the contract once this one ends the new rent will be ££££". .....be sufficient?

Thank You.

L123
08-05-2007, 13:03 PM
the contract is for a room in a shared house (HMO)

jeffrey
08-05-2007, 13:12 PM
If you create a new letting, the s.13 procedure is not applicable. You are not actually increasing rent [on a continuing tenancy] but reserving a new rent on a new tenancy.
In your proposed letter, therefore, don't invite 'renewal' of tenancy. Instead, state that "If you wish to obtain a further fixed-term tenancy when the existing one expires, the rent for the new tenancy would be £... subject to contract."

L123
08-05-2007, 13:25 PM
Thanks Jeffrey. Thats what i will write. But how much notice do i need to give? Whens the latest i can give them the letter?

jeffrey
08-05-2007, 13:36 PM
Thanks Jeffrey. Thats what i will write. But how much notice do i need to give? Whens the latest i can give them the letter?

Notice? What Notice? Notice under s.13 might have applied if you were increasing an EXISTING AST's rent; you are not.
You can send your letter to T at any time- the sooner, the better. In case T wants to argue, it might have been a good idea to send it at least two to three months before existing AST expiry, so you could serve a s.21 Notice to turf him out on that expiry if need be.