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Wrigglesworth
21-01-2008, 09:27 AM
Hi,

I have some tenants whose 12 month AST ends in a few weeks. In the past in similar situations I have been happy to let the AST roll on into a periodic tenancy where the tenants want flexibility about when to move. However, on this occasion I would like to put the rent up a little because it seems to have fallen rather below the market. Given that the tenants would like to keep flexibility (I think they're considering buying their own place later in the year) I think they won't mind paying a little more for the added flexibility. Increasing the rent will also help me with a forthcoming remortgage.

The question is how to deal with the rent increase contractually without tying them in for a further six months. Could a fresh six-month AST have a break clause allowing the tenants to leave by giving a month's notice at any time even within the six months? I think this would be most acceptable for the lender on the remortgage. Alternatively, could we agree in writing to allow the existing AST to roll into a periodic tenancy, but at an increased rent?

Thanks for any advice,

Wrigglesworth

pcwilkins
21-01-2008, 09:30 AM
could we agree in writing to allow the existing AST to roll into a periodic tenancy, but at an increased rent?

You can increase the rent during a periodic tenancy. There is a proper way to do it, I think. Try googling for it.

Peter

jeffrey
21-01-2008, 15:16 PM
The question is how to deal with the rent increase contractually without tying them in for a further six months. Could a fresh six-month AST have a break clause allowing the tenants to leave by giving a month's notice at any time even within the six months? I think this would be most acceptable for the lender on the remortgage. Alternatively, could we agree in writing to allow the existing AST to roll into a periodic tenancy, but at an increased rent?
Use s.13 for rent increase. The six-month rule does NOT apply to a renewal AST anyway.