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Day
11-11-2005, 15:14 PM
When my current tenant's 6 month contract ran out and moved to a periodic tenancy i asked my agents to put the rent up for me. The reply i received was that i could not raise the rent until the tenant had been resident in the property for a year, unless i wanted to start with another 6 month contract.
However, imagine my shock and horror at reading a leaflet from the Office of the Deputy Prime Minister which says 'When a fixed term tenancy ends and the tenancy lapses into a statutory periodic tenancy, you can agree a rent increase with the tenant.'
So what in hell's name are the agency playing it, it does not state a time period of a year.....so were they just making it up? Or do they have secret inner powers of rustling up odd laws and small print that the Dep. Prime Ministers Office is incapable of.
Tell me please, i want any excuse to write a nice seething email to my useless letting agents!

Energise
11-11-2005, 15:31 PM
Question from ****:

"Can my landlord just put up the rent? It has had increased by 25% this year."

Marveen Smith:

"If he has a fixed term tenancy, that is with a start and end date, and the amount of rent named on the Tenancy Agreement, he can't increase the rent during that period. If the fixed term has lapsed and the tenancy has continued, this is a statutory periodic tenancy, the only legal way he can enforce a rent increase is to service a Section 13 notice under the Housing Act 1988. The tenant gets one period of the tenancy, which is usually one month, to object to the notice by making an application to the Rent Assessment Committee who will examine all the facts. If the landlord has not served such a notice on you, do not pay any increase. However bear in mind if you cannot come to a satisfactory conclusion, he can serve a minimum of 2 months notice on you under Section 21 of the Housing Act 1988 to end the tenancy agreement."

lucid
11-11-2005, 16:27 PM
Here this thread may be of use to you:

http://www.landlordzone.co.uk/forums/showthread.php?t=1123


and here:

http://www.landlordzone.co.uk/forums/showthread.php?t=1168

Where paul F says:

"Susan. Have you not heard of using the Section 13, Form 4B route to raise your rents? It's a very powerful marketing tool, and you don't need to keep drawing up new AST's each time. The tenant has 28 to reply and if they don't the increase is autmatic. If they do appeal you're at liberty to serve a S.21 Notice.

You can only use this method after the tenant has been in residence for 52 weeks. It's considered onerous to raise rents more often than annually, but it's not illegal. It leaves the opportunity open for the tenant to appeal against the raise, which they are much more likely to do if it goes up after only 6 months."

MrWoof
11-11-2005, 20:53 PM
As you can see, you can put the rent up but there may be problems in doing it more frequently than annually. If the tenants are on housing benefit, that is only reviewed annually and the review date is the anniversary of the rent officer's settlement date, not the anniversary of the tenancy.

Mike Redman
24-11-2005, 22:34 PM
OK, let me start from the beginning with this one . . .

Me and two friends rent a property together, it's not a bad property, 4 bed, reasonable decoration etc. etc. We are currently renting it through a letting agent and have been since June 25th this year.

OK, here it gets complecated. For whatever reasons, the landlord has decided he no longer wants to rent through the letting agent and has offered us a private tennency directly with himself, which we were all ok with as long as it was all drawn up properly etc. etc. This was about 4 weeks ago this was mentioned. We waited for a while, and eventually contacted the landlord today regarding this as we hadn't heard anything for a while. So he said he'd send the documents through ASAP for our approval.

My housemate gets a phone call about 6:30 this evening, and finds out to his astonishment the landlord is demanding we pay a rent of £800 per month if we want to rent it privately from him. We only currently pay £675 which is about the going rate for property of its type in this area. Naturally we said no we can't afford that, and haven't actually heard anything from him since. So we're now sitting in limbo!!

I know from reading this site, if I've read it correctly, that we can't be evicted from this property until February 25th, two months after the origenal tenency agreement expires, but I got loads of questions for you guys!!

1) Does the rent continue at its current rate for those two months?? there will be no tenency agreement in place as the current one expires on december 25th. There's no way he can impose an increased rent on us for two months is there?? On the other side, could we get away with living here free as there's no tenency agreement in place???

2) what happens to our deposit currently held by the letting agent bearing in mind the landlords agreement with the letting agent runs out on dec 25th same as our tennency agreement.

3) I know we are supposed to give 4 weeks notice of terminating the agreement, but we're not sure if we can find another property before christmas, and won't know until middle of next week at the earliest, this would mean we can only give 3 full weeks notice, is this allowed as the tenency agreement isn't being renewd, and it's the landlords fault we're in this situation anyway?? Simerly if we stay in this house after dec 25th, and find a property mid january, how much notice do we require to give the land lord we're gettting out, or can we just up and leave as we're outside of the tenecy agreement anyway??

4) We've got loads of problems with this place, a lot of which I've fixed myself, and invoiced the landlord for (still waiting for my money though) The BIG problem we currently have is NO central heating that works and we never have had, dispite many calls to the landlord and esate agent about this!! We've been really relaxed about it as we all work full time and simply don't have the time to chase them up. (Insted I've actually gone out and brought a gas heater and couple of electric radiators as an easy solution.) I've been informed we might be eligeable for some of our money back in way of compensation from the landlord as this has not been resolved dispite reporting it the day after we moved in and many subsequent times since. Is this true??

Naturally me and my housemates are a bit confused here, so any help or comments would be appriciated!!

Many thanks

Mike.

MrShed
24-11-2005, 22:57 PM
1) Does the rent continue at its current rate for those two months?? there will be no tenency agreement in place as the current one expires on december 25th. There's no way he can impose an increased rent on us for two months is there?? On the other side, could we get away with living here free as there's no tenency agreement in place???

Yes, same rate, he must serve a Section 13 to increase it(I believe), or you must have signed a new AST. Neither has happened, so no increase. And no you cannot live there rent free, as there is a tenancy agreement, it is merely a periodic tenancy under the same terms as the original AST.

2) what happens to our deposit currently held by the letting agent bearing in mind the landlords agreement with the letting agent runs out on dec 25th same as our tennency agreement.

Landlord is responsible for the deposit. If he has problems, he needs to sue the LA, but he is responsible to you for the deposit.

3) I know we are supposed to give 4 weeks notice of terminating the agreement, but we're not sure if we can find another property before christmas, and won't know until middle of next week at the earliest, this would mean we can only give 3 full weeks notice, is this allowed as the tenency agreement isn't being renewd, and it's the landlords fault we're in this situation anyway?? Simerly if we stay in this house after dec 25th, and find a property mid january, how much notice do we require to give the land lord we're gettting out, or can we just up and leave as we're outside of the tenecy agreement anyway??

Simply, no. You must give a months notice, due to the periodic tenancy I explained above.

4) We've got loads of problems with this place, a lot of which I've fixed myself, and invoiced the landlord for (still waiting for my money though) The BIG problem we currently have is NO central heating that works and we never have had, dispite many calls to the landlord and esate agent about this!! We've been really relaxed about it as we all work full time and simply don't have the time to chase them up. (Insted I've actually gone out and brought a gas heater and couple of electric radiators as an easy solution.) I've been informed we might be eligeable for some of our money back in way of compensation from the landlord as this has not been resolved dispite reporting it the day after we moved in and many subsequent times since. Is this true??

You are eligible certainly for your financial loss. Use your right of offset to deduct money from the rent for any bills incurred so far, and any future bills for repairs of central heating. To play safe, keep two quotes, get one done, and send a copy of one receipt to the LL. Simply deduct the amount from your rent. With regards compensation, I believe you would be on somewhat difficult ground getting compo over and above your financial losses without an explicit agreement from the landlord.

Naturally me and my housemates are a bit confused here, so any help or comments would be appriciated!!

Many thanks

Mike.

Please get out of this idea that you have no agreement. You do, simply a "month by month extension" of your initial agreement.

MrShed
24-11-2005, 22:59 PM
For more detail on your fourth question, see this thread:

http://www.landlordzone.co.uk/forums/showthread.php?t=1247

for my thoughts on the exact procedure to follow.

Mike Redman
25-11-2005, 00:25 AM
Many thanks for the above advice. I wasn't aware about 'periodic tenancy' and that agreements can be extended on a month by month basis, so please excuse my naievity. (and my spelling)

By the looks of things at the moment we're probably going to write to him tomorrow and state we will be leaving the property on the 25th of January, thus 1 months notice begins from the 25th of December. That obviously gives us 2 months from now to find a property which should be easy as there's loads of them on the net in this area at the moment, at good prices as well. seems like December is the month to get a property!

Was interested to find out about our 'right of offset' We talked about getting the boiler fixed ourselves and deducting it from the rent earlier in the year, but were un-sure where we stood legally on this, now I know!

Another question though I'm thinking about the 'reasonable wear and tear' clause on fixture and fittings in the property on our agreement. The house has beige carpets in, some of which aren't as beige as they used to be. They're not really grubby, but there are notible wear marks, and minor marks in places. The carpets were more-or-less brand new when we moved in and we knew they were going to cause problems. We've just had them professionally cleaned as they were getting into a bit of a state. The thing we're really worried about though is the beige leather sofa that they left in the property (which they couldn't get out, and we really didn't want!) That has got one mark on it which we can't get out. Who decides what is 'reasonable wear and tear? and who decides how much of our deposit is kept if items are damaged or need replacing?? We're quite worried about this, as none of us have the means to raise the cash for the deposit on a new property, so we're relying on getting virtually all our deposit back from this one.

We also get the feeling that the landlord is going to try his hardest to keep as much of the money as he can as we're pretty sure he has money trouble as we had the bailiefs turn up for him last month! Shame they couldn't get the leather sofa out!! :D

Incidently, when in the proceedings would we actually get the deposit monies back normally??

Many thanks again!

Mike.

lucid
25-11-2005, 00:35 AM
Remember in addition to the info posted above you can leave at the end of the fixed period and give no notice whatsoever. I am not suggesting you do but just informing you of your right.

Mike Redman
25-11-2005, 00:59 AM
Remember in addition to the info posted above you can leave at the end of the fixed period and give no notice whatsoever. I am not suggesting you do but just informing you of your right.

So to clarify, does that mean we can choose right down to the last day to either leave by the 25th of december giving the landlord no notice (as that's the date the fixed agreement runs out) or make a last minute decision to stay and pay another months rent on a periodic tenancy agreement for one month (we would then be into the 2 months notice the landlord has to give us under section 21.)

I've got a meeting with my mums solicitor tomorrow (also happens to be her boss who I do a lot of computer work for :D ) so I'm hoping he can starighten this all out for us, but I like to be as clued up as possible myself first!

Mike.

lucid
25-11-2005, 01:52 AM
If the tenancy was for a fixed term of 6 calendar months starting 25th june then I think you'd have to leave on the 24th December handing in the keys. Check your agreement see what it says when the fixed term is exactly.

see here
http://www.painsmith.co.uk/painsmith_files/articles/enforcing.pdf



Many Landlords believe that the Tenant has to give notice if he wishes to leave the property at the end of the tenancy Agreement. This may not be correct. The Tenant has contracted for a fixed period, their obligation is to pay the rent and to reside in the property for that period of time but at the end of the contractual period, their obligations terminate and they can leave the property. They have no requirement to give notice to Landlord or Agent. This means that effectively the Tenant can walk into an Agent's office on the last day of the tenancy hand the keys over and leave the property without incurring any further liability for rental payments.

Agents and Landlords sometimes try to enforce notice periods on the Tenant by including a clause in the Agreement which specifies that if the Tenant wishes to leave at the end of the contractual term he must give one month's notice of his intention to do so. Is such a clause enforceable? It is very doubtful if any Judge would award a Landlord rent because the tenant failed to give notice. Such a clause would probably be deemed to be unfair and therefore void. The Tenant has contracted for a fixed period, it therefore seems illogical that he gives notice stating he will comply with the terms of the contract by leaving the property.

Poj McDodge
25-11-2005, 12:06 PM
What is discussed in the above quote could it be twisted around so that the tennant should inform the landlord if they intend to stay?

lucid
25-11-2005, 12:55 PM
What is discussed in the above quote could it be twisted around so that the tennant should inform the landlord if they intend to stay?Please explain ??How could what be twisted. This is a quote from an article
from solicitors website.

No notice need be given at end of fixed term. If its in the AST its not valid and unenforceable. Doesn't mean its not polite to do so. This is an explanantion of statute and law not advice on what to do.

Clueless75
03-04-2007, 18:27 PM
I have received a letter from my letting agent who are seeking approval from my landlord to get my rent increased exclusive of all bills (currently it's inclusive of c/tax and water rates). I live in a bedsit in a multi-occupancy (house) with one other bedsit and single rooms (all shared the bathroom). One tenant is under the same letting agency as me. The rest are dealt with via the landlord's relative (LR). Now at this moment the LR is not returning the agency or my calls to find out what he wants to do And the agency are also seeking to get off me a contribution of £XX amount towards the renewal fee. So my questions are - as I'm in the last month of the tenancy agreement, what happens if we do not reach a conclusion as I do wish to stay on, as long as certain conditions are met. Plus would it be too much short notice? (have to email a letter within a couple of days). Secondly, is it legal for the tenant to pay towards a renewal fee as I thought it was the landlord's responsibility? Lastly, I have read a little about the Replacement tenancy - would this be applicable to me or will another AST be renewal? Did say I'm clueless, but willing to learn and absorb new info. Many Thanks guys and dolls ;)

Bel
04-04-2007, 11:50 AM
The short answer is you don't have to sign a new agreement if you don't want to.

Alternatives:

Option 1:If you want you can leave at the end of the fixed period without having to give notice, although it is polite to warn the agency of your intention.

Option 2:If you do not sign a new agreement, the tenenacy becomes periodic. And rolls on from month to month. If you decide not to sign, they may give you notice to quit. They may issue a Section 21 notice, which gives at least 2 months notice. Its possible that they have already issued you one when you first took on the tenancy so check your papers. Its means they can ask you to leave at any time after the fixed term or apply to the courts for eviction. They can only evict you after they have a possession order from the judge. But if you pay your rent on time and are a good tenant, they may not want to loose you and will allow it to stay periodic.

Option 3: Negotiate terms that are acceptable to you in the new agreement. If you pay your rent on time and are a good tenant, they may not want to loose you.

Regarding payment for renewal...I believe that the agency should have stated to you at the time you started that you would have to contribute to any renewal. They cannot charge you whenever they feel like it. Look at your AST to see if there is anything in there, or any other agreement you have when the agency took you on.

bravachick
08-08-2007, 11:43 AM
I want to enquire about rent increase, Is there any laws when and how often to increase rent.

jeffrey
08-08-2007, 11:47 AM
I want to enquire about rent increase, Is there any laws when and how often to increase rent.

It depends!

1. Is the property residential or commercial?
2. If residential, is the letting an AST or an SAT?
3. In either case:
a. is the fixed term still running; or
b. is T holding-over on a periodic tenancy; or
c. was it periodic from day 1 without any preceding fixed term)?

In certain cases, the Agreement itself might contain an explicit rent increase mechanism. If not, see s.13 of Housing Act 1988.

taheemr
23-09-2007, 19:02 PM
Hi all,

I can`t seem to find the required form for requesting a rent increase, could someone please send me the link or mail me a copy of the document

Many Thanks

Colincbayley
23-09-2007, 19:47 PM
Hi all,

I can`t seem to find the required form for requesting a rent increase, could someone please send me the link or mail me a copy of the document

Many Thanks

You need a S.13 notice, I can forward one onto you, but i'm not at my own computer at present.
If you send me an email, i'll send it over in the morning.

P.Pilcher
23-09-2007, 20:30 PM
If you can't wait that long it will cost you a small fee: Download what you require from www.oyezformslink.co.uk.

P.P.

Rodent1
23-09-2007, 22:31 PM
"form for requesting a rent increase"

Is that the one the T sends to the LL ? ...LOL

Simon

jeffrey
24-09-2007, 08:55 AM
Hi all,

I can`t seem to find the required form for requesting a rent increase, could someone please send me the link or mail me a copy of the document

Many Thanks

NB: replies assume that:
a. this property is in England/Wales;
b. it is let on an AST; and
c. the Letting Agreement does not prescribe its own rent increase mechanism.

PaulF
24-09-2007, 09:15 AM
A S.13 Notice can be downloaded for free from www.dclg.gov.uk with all the explanatory notes attached. I also wager there is also a free one on the "zone" accessible from the home page.

You do not need to pay for anything - all you have to be is a little enterprising - beyond one or two I know!

jase_31@hotmail.com
26-01-2008, 10:26 AM
Hi,

I have a tennant on a AST that is about to come to an end.

The ast has a provision for a increase in rent every 12 months. Can I just let the tennancy agreement "lapse" into a periodic? Are there any disadvantages to this?

Do I need to serve any notice on the tennant of the increase? I have looked at a S13 notice, but is says not to be used when the ast contain a mechaism for increase?

johnboy
26-01-2008, 16:58 PM
If you want the tenant to stay just issue a new contract with higher rent. If you want the tenanacy to be periodic serve section 13. If the tenant says they wont pay higher rent you will have to keep it the same or serve s21. If you think they may be difficult go down the route of a s13 and after a while if the rent comes in ok issue new contract.

Poppy35
26-01-2008, 18:18 PM
remember as well that if you issue a new contract the deposit has be protected. Not sure when your initial contract started so may be protected already of course.

worriedlandlord
08-02-2008, 18:38 PM
I previously posted a thread "Tenant refusing to sign new agreement - please help" about my tenant refusing to sign a new tenancy agreement, but has agreed to pay the new rent. I was advised by members that I need a S13 to do this even though he has agreed in writing to pay the new rent.

Can anyone give me more details of S13, or even provide a template!

Thanks


WL

alangwd
08-02-2008, 19:10 PM
http://www.rpts.gov.uk/pubs_and_forms/pdf/MarketRentSection13Appfrm.pdf hope this is what you are after?

fallenlord
09-02-2008, 08:51 AM
I previously posted a thread "Tenant refusing to sign new agreement - please help" about my tenant refusing to sign a new tenancy agreement, but has agreed to pay the new rent. I was advised by members that I need a S13 to do this even though he has agreed in writing to pay the new rent.

Can anyone give me more details of S13, or even provide a template!

Thanks


WL


I think this is better:

http://www.letlink.co.uk/GeneralInfo/Section_13_2003/new_section_13_notices_Form_4b.htm

I am assuming you are in England as this is the 4b form. If you are in Wales there is a different form - 4d. Again, if you are in Scotland there is another form...its a wonderful straight forward system that keeps local government employees in work....

jeffrey
10-02-2008, 13:46 PM
I think this is better:

http://www.letlink.co.uk/GeneralInfo/Section_13_2003/new_section_13_notices_Form_4b.htm

I am assuming you are in England as this is the 4b form. If you are in Wales there is a different form - 4d. Again, if you are in Scotland there is another form...its a wonderful straight forward system that keeps local government employees in work....
It's nothing to do with local government.

The law of E&W is the same, but:
a. the Notice procedures differ (e.g. Wales requires bilingual text); and
b. commencement dates of Acts often differ slightly too.

The law of Scotland is entirely different.

fallenlord
12-02-2008, 13:29 PM
I previously posted a thread "Tenant refusing to sign new agreement - please help" about my tenant refusing to sign a new tenancy agreement, but has agreed to pay the new rent. I was advised by members that I need a S13 to do this even though he has agreed in writing to pay the new rent.

Can anyone give me more details of S13, or even provide a template!

Thanks


WL

As an after thought bear in mind point 8, underneath “Guidance notes for landlords”. You do not need to send this form if your Tenancy Agreement has a clause allowing for increases in rent, although I do suggest that you put any proposed rent increase in writing.

jeffrey
12-02-2008, 13:34 PM
It's not that "you do not need to send this [s.13] form". That sounds like s.13 is at least an option.
In fact, s.13 DOES NOT APPLY where the existing Agreement already contains a rent increase provision.

TheFoxTrust
16-04-2008, 14:34 PM
Hello there, just after a little advice if possible,We own and rent 10 homes and have not increased the rent since the development opened 4 years ago, I want to put them up by £10 pcm currently at £375 pcm, How much notice are the tennants entitled to? And will a writen notice suffice? Also are there any guidlines of pecentages that I need to abide by for the increase, or can I just put it up by the £10 in one go? The ast that we use is ancient (used by father in law for hes developments for the last 20 yrs) and they make no mention of rent increase possibiltys, they also make no mention (on a seperate tangent) of late payments would a written notice to all tenants of late payment penaltys coming into play be sufficiant, or do I need some formal agreement etc , the late penalty in fairness is for the benefit of 1 tennant where the other 9 are allways on time. Or is there some other way of dealing with mr late?? I issued him with a (21) 18 months ago for this same problem and he has been fine, I dont want him slipping into old habbits, any preventative ideas??
many thanks in advance for any replies.
C.

Colincbayley
16-04-2008, 14:46 PM
In order to increase the rent you need to issue your tenants with a S.13 notice. If you want to and penatly clauses into an old AST then you would be better off issuing new AST's ( Although you will then come under the rules for the DPS )

You can increase the rent once per year by any amount upto market rates.

If you need a blank S.13 notice, then just send me a PM.

bill9876
18-04-2008, 13:26 PM
Hello, I wonder if you can help me. The estate agent is coming round this afternoon to discuss a rent increase that the landlord has requested. I'm not happy about it going up again. I spent 6 months doing this (previously uninhabitable) place up in 2002 in return for a fair rent of £300pm. Then in 2005 I got a letter from the agent saying the rent was going up (two weeks notice) to £350 and then 6 months after that to £400 (a whopping 33% in 6 months in total). I wasn't happy but they said basically "pay up or get out". Now they want to put it up again. I've read somewhere that the Landlord is legally responsible for servicing / repairing the boiler but I've always paid that. The window frames and doors are rotten. Several jobs the landlord promised to do have not been done. The paint is all flaking off the walls in the bathroom and the enamel peeling off the bath. Can they simply say "pay up or get out", even though it is a shorthold tenancy?

Colincbayley
18-04-2008, 14:13 PM
If there is no provision within your AST for a rent increase then they must serve a S.13 notice on you. Unless of course you agree to any increase.
They can only put the rent up once in any 12 month period and must also give you fair notice of this ( Can't remember if it's one or two months off hand )

bill9876
18-04-2008, 14:39 PM
If there is no provision within your AST for a rent increase then they must serve a S.13 notice on you. Unless of course you agree to any increase.
They can only put the rent up once in any 12 month period and must also give you fair notice of this ( Can't remember if it's one or two months off hand )

Thankyou. There is no provision in the AST for increases and they did not serve an S.13 notice. I kicked up a stink about it at the time but reluctantly paid it because they would kick me out if I didn't. I suppose that by paying it have I agreed to it? (even though I didn't agree to it!).

Colincbayley
18-04-2008, 14:41 PM
I suppose that by paying it have I agreed to it? (even though I didn't agree to it!).

Yes.

Also, even if they do serve a S.13 notice on you, with the required notice period, you can appeal, but if the new rent they want is there or there abouts with the market rate, then you won't win your appeal. As such, they could then issuing you with a S.21 and gain possession back of the property.

Rock and hard place comes to mind!

bill9876
18-04-2008, 15:06 PM
I also read somewhere that they can only increase the rent once a year, so can I claim back the 6 months extra I paid? (they increased it twice in 6 months)

Colincbayley
18-04-2008, 15:31 PM
I also read somewhere that they can only increase the rent once a year, so can I claim back the 6 months extra I paid? (they increased it twice in 6 months)

Again no, sorry. You have agreed to the new rent by paying it, so you are now stuck with it. However, if it has been only six months since the last increase then they will have to wait another six months before putting it up again. ( Unless they issue you with a S.21 notice then ask you to sign up to a new AST! )

bill9876
18-04-2008, 17:05 PM
The landlord wants to put up my rent, but I think I'm paying a fair price already. What would happen if I didn't pay the increased rent but continued to pay it at the current rate? Can they evict me?

attilathelandlord
18-04-2008, 17:27 PM
If the landlord puts up the rent in the correct manner, then if you don't pay the increase then he/she can sue you for the outstanding, then serve you a S21 and get rid of you.

Colincbayley
18-04-2008, 17:28 PM
Yes, by using a S.21 notice ( No blame notice ) they would have to give you two clear months notice to expire on the last day of a rent period ( if you are outside of any fixed term )
As such, they could use this method to oust you and get another tenant in at a higher rent if they wanted.

bill9876
18-04-2008, 17:45 PM
If the landlord puts up the rent in the correct manner, then if you don't pay the increase then he/she can sue you for the outstanding, then serve you a S21 and get rid of you.

In the correct manner? What if they don't do it in the "correct manner"? Just send me a letter maybe? And does it make any difference if I'm long term assured?

Colincbayley
18-04-2008, 17:55 PM
The correct manner is by way of a S.13 notice.
Define what you mean by long term assured? When did your tenancy start and type of tenancy you have.

bill9876
18-04-2008, 17:59 PM
The correct manner is by way of a S.13 notice.
Define what you mean by long term assured? When did your tenancy start and type of tenancy you have.

So if they don't use an S.13 it doesn't count? And a court wouldn't issue an eviction notice unless an S.13 is used? It was originally (in 2002) a shorthold (6 months), but the estate agent has since said in a letter that it is now a long term assured tenancy.

Colincbayley
18-04-2008, 18:10 PM
So if they don't use an S.13 it doesn't count? ( Unless it is written into your AST that the rent can be increased and how it will be increased And a court wouldn't issue an eviction notice unless an S.13 is used? Sorry, not correct. A LL can issue a S.21 notice for possession of the propertyIt was originally (in 2002) a shorthold (6 months), but the estate agent has since said in a letter that it is now a long term assured tenancy.What you have now is a periodic tenancy, this is not by any means a long term assured tenancy. It just means that your tenancy agreement just goes month to month. As such you can give just one months notice to your LL to leave and your LL must give you 2 months notice by way of a S.21 notice. Either way the notice must expire on the last day of a rent period.

bill9876
18-04-2008, 20:27 PM
What you have now is a periodic tenancy, this is not by any means a long term assured tenancy. It just means that your tenancy agreement just goes month to month. As such you can give just one months notice to your LL to leave and your LL must give you 2 months notice by way of a S.21 notice. Either way the notice must expire on the last day of a rent period.


Actually it is a long term assured tenancy as the estate agent has said so in a letter. It doesn't matter that it was originally a shorthold tenancy as it can be changed afterwards if both LL and T agree. So does this make a difference?

Colincbayley
18-04-2008, 20:30 PM
Actually it is a long term assured tenancy as the estate agent has said so in a letter. It doesn't matter that it was originally a shorthold tenancy as it can be changed afterwards if both LL and T agree. So does this make a difference?

What did they say in their letter, just that you have a long term assured tenancy?

bill9876
18-04-2008, 21:38 PM
What did they say in their letter, just that you have a long term assured tenancy?

I asked for an a long term assured tenancy when they wanted to put the rent up before (for security of tenure)......in their reply they said "you know that with a tenancy like this it will be a long term assured tenancy".

Colincbayley
19-04-2008, 07:33 AM
I asked for an a long term assured tenancy when they wanted to put the rent up before (for security of tenure)......in their reply they said "you know that with a tenancy like this it will be a long term assured tenancy".

So you had a AST for a fixed period and this rolled onto a Periodic tenancy. The advice I have given above would apply.
You have no sercurity of tenancy, your LL could just give you 2 months via a S.21 notice to leave.

bill9876
19-04-2008, 16:57 PM
So you had a AST for a fixed period and this rolled onto a Periodic tenancy. The advice I have given above would apply.
You have no sercurity of tenancy, your LL could just give you 2 months via a S.21 notice to leave.

I suspect a Court of Law would rule that I now have an assured long term tenancy agreement. The CLG site says this, "The landlord must either give you a notice which says that the tenancy is not a shorthold tenancy before the beginning of the tenancy, or include a simple declaration in the tenancy agreement to this effect. If you both agree after the tenancy has started that it should be on assured terms, he or she can serve the notice after the tenancy has started. There is no special form for giving this notice – your landlord simply needs to state clearly that the tenancy will not be a shorthold tenancy."

G Johnson
29-04-2008, 09:04 AM
I have a newly acquired property with a sitting tenant, I have made some enquiries and I am receiving conflicting info, all I need to know is - given the usual 1 month notice can I increase the rent on the property? I know that the tenant will take it to a rent tribunal but I need a starting point to work from.

jeffrey
29-04-2008, 14:50 PM
I have a newly acquired property with a sitting tenant, I have made some enquiries and I am receiving conflicting info, all I need to know is - given the usual 1 month notice can I increase the rent on the property? I know that the tenant will take it to a rent tribunal but I need a starting point to work from.

1. What sort of property is it?
2. What sort of letting is it?
3. When did the current Tenancy Agreement begin, and was it granted to current T?
4. For how long has the existing rent been unchanged?
5. (If residential) Have you served T with:
a. V's Letter of Authority in your favour;
b. Notice under s.3 of LTA 1985; and
c. Notice under s.48 of LTA 1987?

nacroman
17-05-2008, 11:41 AM
Hi all,

Thanks in advance for advice on this issue.

I am the LL of a property. An agreement with a tenant exists with no mention of a rental review. The period of the agreement is 2 years. Is there any way I can legally raise the rental for this property?

Poppy
17-05-2008, 11:50 AM
If your signed agreement does not specify a rent increase clause, you cannot increase the rent until after the fixed term has expired.

Please specify:


the commencement date
the end date (if specified)
the term
deposit
if a deposit was taken, is it protected in a scheme

With these questions answered, a fuller answer can be offered.

jeffrey
18-05-2008, 20:52 PM
Hi all,

Thanks in advance for advice on this issue.

I am the LL of a property. An agreement with a tenant exists with no mention of a rental review. The period of the agreement is 2 years. Is there any way I can legally raise the rental for this property?

1. Is it residential or not?
2. If you let for two years at a fixed rent, why do you now want to increase it?
3. Was there in fact an error? If so, whose?

Mully
27-05-2008, 13:29 PM
Hi,

I'm currently looking at increasing the rent on my property as for the past 3 years the rent has only increased by £4 per week. (From £121.25pw [originally collected as £525.00 pcm ] to £125.00pw)

My current rent stands at £125.00 per week.

How am I best to fairly calculate what the current rent should be and where can i get guidance on the proceedure to follow?

Many Thanks

Andy

Mrs Jones
27-05-2008, 13:34 PM
Look around - local papers, renting websites etc. to see what similar properties in your area are being advertised for and then make a judgement as to what would be a fair market rent for your property. Before hiking the rent too far, you need to consider whether you want your current tenant to stay and how much they can afford - if you put it up too much, they may leave and a month's void (or more) could eliminate any benefit an increase would give you over the next 12 months.

jeffrey
27-05-2008, 14:52 PM
Hi,

I'm currently looking at increasing the rent on my property as for the past 3 years the rent has only increased by £4 per week. (From £121.25pw [originally collected as £525.00 pcm ] to £125.00pw)

My current rent stands at £125.00 per week.

How am I best to fairly calculate what the current rent should be and where can i get guidance on the proceedure to follow?

Many Thanks

Andy

1. Is this an AST?
2. Does it contain a rent increase clause?
3. Has its fixed term expired?
4. Also, try using "MacroSearch" feature and scan for "section 13 of Housing Act 1988".

Mully
28-05-2008, 10:29 AM
1. Is this an AST?
2. Does it contain a rent increase clause?
3. Has its fixed term expired?
4. Also, try using "MacroSearch" feature and scan for "section 13 of Housing Act 1988".

Thanks Jeffrey,

1. Yes, it is under an AST agreement.
2. I cannot find any rent increase clause in the contents of the agreement
3. The fix term expired approximately 6 months ago and has been running on a periodic basis since then.
4. I have searched the Macrosearch facility and I'm struggling to find anything of assistance.

jeffrey
28-05-2008, 10:34 AM
I have searched the Macrosearch facility and I'm struggling to find anything of assistance.
Try "section 13" and "LandlordZONE only"; I found > 100 references!
Also try "Agreements", then "Notices", then "Rent increase".
The section allows L to serve a prescribed form of Notice to increase the rent, as long as:
a. the fixed term has ended; and
b. the AST does not itself contain an increase mechanism.

arusha
29-05-2008, 08:16 AM
I am doing a rent increase by using a section 21 to end the existing tenancy and then starting a new tenancy with higher rent. It means the new tenancy will be a fixed term again.

I don't know which is better doing this or a section 13.

jeffrey
29-05-2008, 09:15 AM
I am doing a rent increase by using a section 21 to end the existing tenancy and then starting a new tenancy with higher rent. It means the new tenancy will be a fixed term again.

I don't know which is better doing this or a section 13.

Section 13 is quicker (and involves less paperwork).

Enforcer
04-06-2008, 11:28 AM
Hello everyone,

I have a number of properties and always use my own AST of 6 months, however, I let a flat through an agent in December and the contract they used was one of 12 months with no break clause! Rents in the area are now shooting up(!) and with higher mortgage repayments I would like to increase the rent. The tenant has always paid on time, so I can't give them notice, but will I be able to give them a rent increase half way through the tenancy??

Thanks for your help!!

Enforcer

jeffrey
04-06-2008, 11:52 AM
Hello everyone,

I have a number of properties and always use my own AST of 6 months, however, I let a flat through an agent in December and the contract they used was one of 12 months with no break clause! Rents in the area are now shooting up(!) and with higher mortgage repayments I would like to increase the rent. The tenant has always paid on time, so I can't give them notice, but will I be able to give them a rent increase half way through the tenancy??

Thanks for your help!!

Enforcer

Unless there's a rent increase clause in the Agreement:
a. see s.13 of 1988 Act. This provides a rent increase mechanism operable at least one year after letting begins; failing which
b. you cannot increase rent after six months of a twelve-month fixed term.

Enforcer
04-06-2008, 14:57 PM
Thanks for that!! So will just have to stick it out then, and pay the shortfall myself. There is no rent increase clause, the contract is extremely basic!

Enforcer

jeffrey
04-06-2008, 15:09 PM
Thanks for that!! So will just have to stick it out then, and pay the shortfall myself. There is no rent increase clause, the contract is extremely basic!

Enforcer

Yup. However, bear in mind that:
a. T wouldn't be expecting (or budgeting for) a half-way rent hoik anyway; and
b. you could have told the Agent either to:
i. include a rent increase clause; or
ii. let for six months only.

sammy07
14-06-2008, 11:50 AM
Hi there

I've been letting out my property for almost 2 years and have not yet increased the rent. My tenant had a shorthold tenancy agreement for 6 months at the start and then I let it go onto a rolling contract. I'm planning on putting the rent up and I'm going to get a new contract drawn up. Do I have to get a new contract drawn up or can I just write a letter to say that I'm putting the rent up? Also, does anyone know where I can access a template for a assured shorthold tenancy agreement? the last one I had drawn up cost around £90 and was done for me by a local estate agent. Is there any info on suggested rent increases for this current year?

any info/help would be appreciated.

Regards
Sammy

jeffrey
15-06-2008, 22:55 PM
To increase AST rent without new fixed term, use s.13 Notice procedure.

silvercar
16-06-2008, 08:28 AM
Can someone confirm I can use s.13 if the original AST is about to end and I want to increase rent while allowing the AST to roll-on on a periodic basis.

12 month AST ends end July and I am thinking that I can give S 13 by end June to increase rent from end July onwards.

Also this is the second AST, both having been for 12 months, but I now don't want to issue another 12 month AST as there have been a lot of late payments of rent. Not enough to remove tenant, but enough that I don't want to issue another 12 month AST. I have told tenant that tenancy will become periodic but they have said they would prefer another AST, I have (politely) said tough; either go periodic or you can leave at the end of the AST or after that give one months notice (to end on a rent day) and leave. They seem to think they have the right to insist on a new AST as that was the basis they took the property and I don't have a right to change it.

jghomer
16-06-2008, 09:14 AM
Also, if your tenancy agreement contains a clause indicating that rent reviews are due periodically, and that a set notice period is given in writing, you don't have to use S13 at all as far as i'm aware - just a letter will suffice.

jeffrey
16-06-2008, 09:17 AM
Also, if your tenancy agreement contains a clause indicating that rent reviews are due periodically, and that a set notice period is given in writing, you don't have to use S13 at all as far as i'm aware - just a letter will suffice.

Not only "don't have to use"; in fact, s.13 does not apply at all if the Agreement contains a rent increase mechanism.

silvercar
16-06-2008, 11:55 AM
Not only "don't have to use"; in fact, s.13 does not apply at all if the Agreement contains a rent increase mechanism.

It doesn't. So presumably I can issue a s13 notice now to take effect from the end of the AST at the end of July?

and, I don't have to issue a new AST if I don't want?

jeffrey
16-06-2008, 12:08 PM
It doesn't. So presumably I can issue a s13 notice now to take effect from the end of the AST at the end of July?

and, I don't have to issue a new AST if I don't want?

1. Yes. You can increase rent once fixed term's expired. Maximum of one s.13 increase per year.
2. Yes. If no new fixed term, existing AST continues periodic.

rmj
18-06-2008, 08:02 AM
Hi,

Could I please have some opinions on increasing monthly rent, notice period etc.

The tennants have been in 2 years without an increase.

I have advised them that I will be reviewing the rent and I would like to do it correctly and politely.

As rental rates have risen quite a bit over the past 2 years I would not be able to raise it to the market level in one go.

Thanks.

jeffrey
18-06-2008, 11:39 AM
Hi,

Could I please have some opinions on increasing monthly rent, notice period etc.

The tennants have been in 2 years without an increase.

I have advised them that I will be reviewing the rent and I would like to do it correctly and politely.

As rental rates have risen quite a bit over the past 2 years I would not be able to raise it to the market level in one go.

Thanks.

Use s.13 of Housing Act 1988 if applicable.

Ericthelobster
18-06-2008, 12:18 PM
As rental rates have risen quite a bit over the past 2 years I would not be able to raise it to the market level in one go.Well you could... ie, there's nothing to stop you - but your tenant might leave of course. Depends whether they can find a better deal elsewhere of course, which theoretically they shouldn't, if you're really only talking raising to the market rent.

A good reason for reviewing the rent annually methinks... even if you end up not actually raising it, at least you consider the pros and cons.

silvercar
18-06-2008, 12:32 PM
Can I serve section 13 using ordinary post with certificate of posting or should I use recorded?

Problem is ordinary would mean I know i can assume its served whereas with recorded, T could refuse to sign.

Left it a little late and need to do it before the weekend!

silvercar
18-06-2008, 13:40 PM
I have a tenancy that is becoming periodic ie the 1 year AST is ending next month.

I am completing section 13 (2) form 4b to notify T of rent increase.

Para 3 says, "The first rent increase date after 11th Feb 2003 is.........(see note 10)"

Note 10 states, "Unless the tenancy is a new one, or one of the exceptions in note 16 applies,you must insert in para 3 of the notice the first date after 11 Feb 2003 on which the rent is proposed to be, or was, increased under the statutory notice procedure. That date specifies the date that you can specify in para 4 of the notice"

Para 4 states, "The first date for the new rent will be....."

Note 16 gives the exception of a fixed term tenancy going periodic, so can I leave Para 3 blank? Or should I put the same date as in Para 4?

Also I intend posting with certificate of posting to prevent tenant refusing to sign for recorded delivery, is that OK?

Thanks for any help.

PaulF
18-06-2008, 17:26 PM
Can I serve section 13 using ordinary post with certificate of posting or should I use recorded?

Problem is ordinary would mean I know i can assume its served whereas with recorded, T could refuse to sign.

Left it a little late and need to do it before the weekend!If you are going to use S.13 your tenant must reply within 28 days otherwise the rent increase will be automatic. Why not send one with proof of posting and send another recorded. He can't say he didn't receive either of them!

jeffrey
20-06-2008, 09:42 AM
I am looking to increase the rent at the end of my tenanst AST just before he enters his periodic agreement, as this year I have supplied a property with a new kitchen and bathroom and carpets all through.

When is it possible to send through the increase notice?

Many thanks.

Read s.13 of Housing Act 1988. This procedure cannot apply during fixed term itself.

Paragon
20-06-2008, 09:54 AM
I am looking to increase the rent at the end of my tenanst AST just before he enters his periodic agreement, as this year I have supplied a property with a new kitchen and bathroom and carpets all through.

When is it possible to send through the increase notice?

Many thanks.

Instead of entering a periodic, could you write up a memoradum to the original AST for both of you to sign, with new starting and leaving dates and to include the new rent agreement? Point out in the memorandum that everything in the original AST is still valid with the above exceptions.

Steve C
22-06-2008, 23:10 PM
I was having problems trying to understand what date should b entered into para 3 on form 4b and as such was searching the forum for help when I came across this thread where it is clear silvercar shares my grief.

I have taken paul_f's advice but can't see that the thread referred to answers the original question.

For my own circumstances, an AST was issued on 16 July 2007 for 6 months and as such has now rolled into a periodic tenancy. I realise that I will be too late for an increase in July 2008, so was proposing a rise for August. What date should go down in para 3?

Many thanks

PaulF
23-06-2008, 14:28 PM
If you put Form 4b into your search engine and you should find this government website where you can obtain the form and all admin details free http://www.opsi.gov.uk/si/si2003/20030260.htm

sammy07
23-06-2008, 21:34 PM
Does anyone have a nicely worded letter that is diplomatic but factual at the same time that I can send to my tenant to say the rent is going to be increased? I want to say that due to my increase in costs and also to make the rental amount in line with market rates that I am having to up the cost of rent.

Examples of diplomatically worded letters would be much appreciated.

Many thanks all!

silvercar
23-06-2008, 22:16 PM
I would use a standard section 13 notice with a covering letter. Some phrases you could consider in the covering letter:

I have tried to keep the increase small.

The rent has been at the current level for X years now.

Comparable rents are higher, if I was advertising for a new tenant now I would be asking for a rent of £XX- YY per month.

Poppy
24-06-2008, 08:15 AM
First of all sammy07, does your tenancy agreement include a rent increase clause? Your answer determines your subsequent rent increase actions.

Silvercar's first sentence applies to tenancy agreements without a rent increase clause.

Subway
24-06-2008, 12:10 PM
The LAs wrote a letter to me on 20th May proposing a rent increase and asking for my agreement. In the letter they mentioned that the rent increase could not take place until 1st July. I was on holiday at the time so didn't read it until just before the end of the month by which time I thought it was too late to comment that I thought the rent increase was a bit steep. The rent has been £250 and it is proposed it will go up to £375. When the agent came around he had said that he was considering putting the rent to £350 so the extra £25 was a bit of a surprise.

They wrote to me again on 6th June to again ask if I was in agreement so this time I took the opportunity to write back and say I thought it was quite a sharp increase in rent although given the recent addition of double glazing to the house and as the rent hasn't been increased for 3 years I recognised an increase was due. This was over a week ago and I've not heard anything back from them. Should I pay the new rent level from 1st July?

I've not had any of the rent increase forms that are mentioned and I looked in my tenancy agreement and it doesn't say anything about a process for rent increase. I may be moving soon as I'm fairly fed up with them so I'm worried that if I rock the boat I may get a poor reference from them? I don't understand why they are asking for my agreement and what it means if I don't agree. Does the first letter act as notice of a rent increase?

jeffrey
24-06-2008, 13:00 PM
Increase by letter does not oblige you to pay the extra. IF you start paying it, you are effectively agreeing that it is payable and acquiescing in variation of existing AST. It's therefore better not to pay the extra as yet but to ask for a formal s.13 Notice (e.g. say that you need it for legal purposes or something else deliberatley vague).

RKFB
24-06-2008, 16:04 PM
I rented out my former home to a young woman and her son in Sept 05 at a rent (£350 pcm) below the local market rate as I wanted to get the property let quickly. She applied for and received full housing benefit covering this amount to be paid directly to me.
I served a Section 13 notice on her in November 2006 with a rent increase to £425pcm (this was still below the rate for other similar properties in the area). She submitted this to the council, to be told that rent increases are only considered on the anniversary of the start of the tenancy. I agreed not to charge the tenant the increase until it was reviewed by the Rent Service, but in Sept 07 the decision came back that £350 was the appropriate rent. I was ill at the time and did not pursue the issue. The rent therefore has remained the same.
The LHA for two bedroomed houses in my area is £475.02 per month, but I would be satisfied with £425. Should I do another Section 13 notice for my tenant to submit to the council? A new tenancy agreement is another option, but there would no doubt be a delay before the new housing benefit claim was paid and I would have to arrange for deposit protection.
Sorry this is so long-winded, hope it makes sense.

jeffrey
24-06-2008, 16:53 PM
She submitted this to the council, to be told that rent increases are only considered on the anniversary of the start of the tenancy.
However, that's not what the 1988 Act provides. Its wording demands changes on anniversary only if the letting is not a statutory periodic tenancy: see s.13(2)(b)'s line 1. Had the original 2005 letting's fixed term expired and did it continue as a monthly tenancy?

Council or not, you should really have implemented the increase at that point.
As you did not, do it now- before you waste even more time.

RKFB
24-06-2008, 19:08 PM
Thanks for your reply Jeffrey
The 2005 tenancy was a 6 month assured shorthold one, which I understand then will have become an assured periodic tenancy at the end of the 6 months.
My reading of Section 13 was that I could not implement an increase in rent before the first anniversary, but that after that it did not matter which month the increase happened. I was told by the council that they only consider housing benefit increases on the anniversary, so it was hard luck that I'd missed the first anniversary in 2006! They did not quote any housing law to justify this. That became academic however when the Rent Service somehow judged £350pcm to still be the appropriate rent the following September!
I am reluctant to impose the increase on my tenant directly at this point - she is a full time student with a young son and no spare cash. I have told her however that I cannot afford to forego a rent increase again this year and that she will need to appeal if the decision again comes back that £350 is the correct amount. If I do decide to wait, would there be a problem with a fresh Section 13 notice showing the same exisiting and proposed rent figures as the previous one?

Bel
24-06-2008, 21:36 PM
If you think its above the market rate then you can apply to the Rent Assessment Commitee to have it adjusted; its an AST and not a lodger agreement?

jeffrey
25-06-2008, 09:27 AM
Since the last s.13 Notice was over a year ago, yes- you can serve another now.

worriedlandlord
25-06-2008, 12:02 PM
Hi

My experience with rent increase and Housing Benefit Dept:

I sent my tenant a letter to inform him that I cannot cope with the low rent and that he contact the HB dept to increase his rent.

I then got a reply saying that my tenant did not qualify for Housing Benefit.

I wrote a letter threatening to boot him out, he forwarded this to the HB dept, they soon got their act together and agreed to pay him increased housing benefit.

It might be a good idea just to threaten eviction, if this doesn't work then consider sending a notice of eviction under s21. I am pretty confident this should force them to reconsider, particulary when your demanding rent below the market price.

Once they have agreed, than you send a S13 out to your tenant.

It worked for me, hope it helps.

RKFB
25-06-2008, 17:57 PM
Thanks to both for your help.

Subway
26-06-2008, 13:22 PM
Thanks Bel

I'm not sure whether it is above the market rates but if it is then it can't be by much and I wouldn't think it worth querying. FYI The house I am in doesn't have central heating and I've not seen any others advertised without central heating!! Also it has an old kitchen and bathroom and I'm providing all kitchen appliances other than cooker so I'm not sure how much you would usually allow for these?

Houses with all those seem to be around £450, although one in the next road at this price hasn't shifted for three months so I'm not sure if thats the price they actually rent at. My rent has been low for ages as I've been there for 8+ years (so periodic tenancy) and only put up once as 'I've been a good tenant!'. I wasn't sure if by asking me to agree rather than just telling me the new rent they were expecting me to haggle or not.

Subway
30-06-2008, 18:48 PM
Just to update and say thanks again Jeffrey. :)

I replied along the lines you said (didn't feel quite bold enough to ask for a section 13 but just said 'start the process') and the agents have replied today to say that they will be increasing the rent from 1st September now so I am VERY glad I didn't just increase my SO for tomorrow to the new rent!

I'm not sure why they didn't just put hand-deliver the notice through my door today as presumably they could have asked for it to start from 1st August but then I guess its not their extra rent...

I can see so many threads about rent increases I guess lots of people must be feeling the pinch.

sammy07
05-07-2008, 20:16 PM
I guess the type of the letter depends on how much you are going to put up the rent. Whats the percentage of the rise if you don't mind me asking?
Hi there Brit1234. I was going to put rent up by 5%, haven't put it up in 2years since tenant moved in. Am just trying to decide how to broach subject of rent increase to my tenant. Thought might be best to discuss in person then send a formal letter. Any advice appreciated.

Colincbayley
06-07-2008, 08:08 AM
Hi there Brit1234. I was going to put rent up by 5%, haven't put it up in 2years since tenant moved in. Am just trying to decide how to broach subject of rent increase to my tenant. Thought might be best to discuss in person then send a formal letter. Any advice appreciated.

If there is no provision within your AST to increase the rent then you will have to use a S.13 notice. I find a covering letter also helps.

If you would like a blank copy of a S.13 notice and a copy of my standard covering letter then PM me with your email address and I will forward these onto you.

digital
07-07-2008, 09:51 AM
I've got form 4b to send to my tenant. Do I have to include the 'Guidance Notes for Tenants' and 'Guidance Notes for Landlords' that came with it? They run to three of the five pages!

jeffrey
07-07-2008, 09:57 AM
"Form 4b" of what? Is this a s.13 Notice or something else?

Colincbayley
07-07-2008, 10:24 AM
I've got form 4b to send to my tenant. Do I have to include the 'Guidance Notes for Tenants' and 'Guidance Notes for Landlords' that came with it? They run to three of the five pages!

Yes, the guidance notes must also be sent with the notice.

MW1969
10-07-2008, 08:55 AM
If I have tennant on 12 month AST can I increase rent when we re negotiate a new 12 month AST at the end of the term of the first AST. is that the way it works or do I have to do something else?

jeffrey
10-07-2008, 10:38 AM
Choose between:
a. new AST replacing old one and granting new fixed term at increased rent; or
b. no new AST but old fixed-term one continues as periodic tenancy; increase rent by s.13 Notice.

jeffrey
17-07-2008, 10:22 AM
Hi there

Does anyone have a blank copy of this form? I went onto a gov website to obtain this form but it is not in an ideal format. Want to add tenant details and print out. Any help/advice would be appreciated!

Use LZ itself. Click on AGREEMENTS and go down list to RENT INCREASE. Simple.

Valencia
23-07-2008, 20:30 PM
Hi, I have tenants on a 6 month AST which was renewed in March. It is due to expire in September and they have to give notice next month latest if they want to leave.

I want to increase the rent w/e from September and I have looked through the tenancy agreement and there is no mention of rent increases. Do I use the s.13 document?

House
23-07-2008, 20:56 PM
they could just walk out at the end of their fixed term contract in september without giving you any notice at all. I believe you can use section 6 to increase the rent as well as section 13 in the first 12 months of a periodic ast.

Valencia
23-07-2008, 20:58 PM
Thanks for your quick reply.

How come they could just walk out with no notice?

Pelican eats pigeon
23-07-2008, 21:18 PM
Because the tenancy effectively ends at expiry of fixed term. Nothing concrete has invited (or compelled) them to remain in occupation. By leaving, they would merely be fulfilling the most literal interpretation of the AST.

You will want to have a chat with them about their plans. This will make clear the best course of action to take with regard to how to increase the rent.

Valencia
23-07-2008, 21:26 PM
Because the tenancy effectively ends at expiry of fixed term. Nothing concrete has invited (or compelled) them to remain in occupation. By leaving, they would merely be fulfilling the most literal interpretation of the AST.

You will want to have a chat with them about their plans. This will make clear the best course of action to take with regard to how to increase the rent.

Is there anything they can sign to effectively 'sign up' again?

House
23-07-2008, 21:29 PM
a new fixed term AST

Valencia
23-07-2008, 21:31 PM
a new fixed term AST

I'm sure that's what I did in March (sorry I wasn't clear). They renewed but signed a new contract.

So if I speak to them and find out they want to stay, can I put the new rent figure in the new AST without the need for the s.13?

House
23-07-2008, 21:38 PM
Yup, s.13 is for rent increases for periodic tenants, if they want to sign a new AST you can agree whatever rent you want with them.

sammy07
01-08-2008, 13:12 PM
Hi there, thanks for info. However, in guidance notes, point 9 about having to use a different form to propose a rent increase for a statutory periodic tenancy. Whats all this about? Very confusing. My tenant is on a rolling contract (ie. periodic tenancy) and has been ever since the first 6 months of the fixed term contract that I did intially. Can I still use form 4 b? Also, do I need to include children on the form or just the tenant that pays the rent? if you could clarify things would appreciate it.

jeffrey
01-08-2008, 13:32 PM
1. There may be two types of s.13 Notice printed:
a. where periodic tenancy arises on AST fixed term expiry; and
b. where AST is granted as periodic from day1.

2. Disregard children, as they cannot hold any legal estate in property.

apope
01-09-2008, 12:34 PM
My Friend has been living in property for 13 years. She has paid for most of the upkeep of the property for this period of time - including having double glazing installed. For 18 months she has not had a tenancy agreement.Last year he asked her to leave as he was having money troubles and wanted to sell the house. she ignored him as she felt she was being treated unfairly and he would not have repaid the money he owed her. He then changed his mind about asking her to leave when he realised he was not going to sell the house and sent her a letter saying that he was going to increase the rent from £750 a month to £1000 a month with only 6 weeks notice. She has now been sent through a letter from an agent asking her to sign a new A.S.T agreement for 6 months. I advised her not to pay the increase in rent, the new agreement is now for the original figure of £750 a month. I believe that as she has lived at the property for so long she must have some rights as regards being able to stay there. She has children who live there with her so moving presents major problems for her. By signing a new agreement will she be compromising her position? Any advice from the experienced agents and landlords out there will be greatly appreciated.
Many Thanks.

jeffrey
01-09-2008, 12:43 PM
There IS a tenancy, even if - for the last 18 months - it's not been recorded in a written Agreement.

To increase rent, L must either:
a. negotiate a new Agreement; or
b. serve a Notice under s.13 of Housing Act 1988; a mere letter is NOT sufficient.

SALL
01-09-2008, 13:45 PM
My Friend has been living in property for 13 years. She has paid for most of the upkeep of the property for this period of time - including having double glazing installed. For 18 months she has not had a tenancy agreement.Last year he asked her to leave as he was having money troubles and wanted to sell the house. she ignored him as she felt she was being treated unfairly and he would not have repaid the money he owed her. He then changed his mind about asking her to leave when he realised he was not going to sell the house and sent her a letter saying that he was going to increase the rent from £750 a month to £1000 a month with only 6 weeks notice. She has now been sent through a letter from an agent asking her to sign a new A.S.T agreement for 6 months. I advised her not to pay the increase in rent, the new agreement is now for the original figure of £750 a month. I believe that as she has lived at the property for so long she must have some rights as regards being able to stay there. She has children who live there with her so moving presents major problems for her. By signing a new agreement will she be compromising her position? Any advice from the experienced agents and landlords out there will be greatly appreciated.
Many Thanks.

If you decide not to sign the agreement, the landlord has the option to serve a section 21 notice and evit the tenant.

PaulF
02-09-2008, 16:39 PM
I wouldn't at all be surprised if this turns out to be an Assured Tenancy not an AST therefore if the landlord is seeking to have a new AST signed it wouldn't be valid if this is the case. I suggest the OP checks whether a S.20 Notice was served on the tenant before the tenancy commenced.

free
30-09-2008, 13:06 PM
Where can I download one of the above forms?

PaulF
30-09-2008, 16:36 PM
From the government's website. http://www.opsi.gov.uk/si/si2003/uksi_20030260_en.pdf

It gives all the info you need to pass on to the tenant.

JDM2008
11-10-2008, 13:58 PM
I issued my tenants with notice of a rent increase wef 06.10.08 from £425 to £439, but they ignored it and paid £425 for October. I have sent them a letter reminding them that the rent has gone up and asking them to amend their standing order. They haven't contacted me to say they wanted to dispute the increase, so I took this as acceptance. Any advice?

mind the gap
11-10-2008, 14:22 PM
I issued my tenants with notice of a rent increase wef 06.10.08 from £425 to £439, but they ignored it and paid £425 for October. I have sent them a letter reminding them that the rent has gone up and asking them to amend their standing order. They haven't contacted me to say they wanted to dispute the increase, so I took this as acceptance. Any advice?

It amounts only to an acceptance that they have received your notification (that you want to increase the rent).

It is clearly not an acceptance of the increase itself, (or they wouldn't be disputing it).

What type of tenancy agreement do they have?

JDM2008
11-10-2008, 14:59 PM
It's an assured shorthold tenancy agreement. The tenants have been in the property for a year now.

mind the gap
11-10-2008, 15:12 PM
Does the tenancy agreement contain any mechanism for increasing the rent?

If not, you can issue a 13 notice informing tenants in writing of the increase. With an AST you cannot increase rent before the end of the fixed term and not more than once per annum when/if tenancy becomes 'periodic'.

If tenants ignore this notification, and just continue to pay the original amount, it's difficult, because if you waited until they owed you two whole months' rent (the normal procedure before you can start to evict them on section 8 ground 8 notice), this will be in about five years' time by my reckoning.

I suggest instead that if they refuse to pay the increase, you issue a section 21 to end the tenancy and claim the unpaid increase from their deposit when they leave.

Anyone got any alternative suggestions?

OP : You did protect their deposit, didn't you?

Brit1234
11-10-2008, 15:23 PM
Its a bit risky increasing the rent when rent is nationally falling and rental supply exceeds rental demand. You risk void periods now for such a small rise while upsetting tennants.

One months void will by far wipe out any rental increase for a year.

PaulF
11-10-2008, 15:36 PM
Does the tenancy agreement contain any mechanism for increasing the rent? This is important because if so then follow what it states

If not, you can issue a 13 notice informing tenants in writing of the increase. With an AST you cannot increase rent before the end of the fixed term and not more than once per annum when/if tenancy becomes 'periodic'. You have to serve Notice on form 4B together with the accompanying notes (all free from www.ospi.gov.uk) and then wait up to 28 days for a response from the tenant

If tenants ignore this notification, and just continue to pay the original amount, it's difficult, because if you waited until they owed you two whole months' rent (the normal procedure before you can start to evict them on section 8 ground 8 notice), this will be in about five years' time by my reckoning. Don't follow this "reasoning"

I suggest instead that if they refuse to pay the increase, you issue a section 21 to end the tenancy and claim the unpaid increase from their deposit when they leave. When? After you have gone through due process of Form 4B or just when you feel like it, in which case it won't work?

Anyone got any alternative suggestions?

OP : You did protect their deposit, didn't you?It is fairly easy to ask for a rent increase lawfully, but in the current climate you might find it difficult to implement.

Mrs Jones
11-10-2008, 16:27 PM
Everyone seems to be focussing on the legal aspects of this question but perhaps JDM might be better to arrange a meeting with his tenants to discuss the proposed rent increase. Asking for a small increase like £14 pcm doesn't seem unreasonable afler a year but perhaps the tenants cannot afford an increase at this time.

I have always made a point of increasing the rent by a small amount each year (as do councils and housing associations..) so that it is not a shock to my tenants - their rents are still comfortably under local market rates for similar properties (even in the current market).

My agent coordinates discussion with tenants re proposed increases with the normal inspection visit and signing of the new AST. If there are genuine reasons why tenants feel they cannot pay such an increase, I would consider not implementing it at that time, but get them to agree to an increase for the next AST period.

From a financial point of view, I need to increase rents next year by a considerable amount, but will not do so as I wish to keep my tenants and avoid voids!! It is always a balancing act!

Mrs Jones
11-10-2008, 16:31 PM
Just another quick thought - you didn't say when you sent them this notice - how much notice of this increase did you give them?

JDM2008
12-10-2008, 11:02 AM
I notified them in August of the proposed increase.

Mrs Jones
12-10-2008, 13:48 PM
That is certainly adequate notice. Looks as if you will have to contact them direct, since from other responses on here to your query seem to indicate there is little you can do if they don't agree - apart from s.21! Good luck!

jeffrey
13-10-2008, 09:30 AM
I notified them in August of the proposed increase.
By s.13 Notice, by new (replacement) AST, or how else?

rajeshk4u
14-10-2008, 19:33 PM
Also, if you tenants deposit is not protected, you have to protect it if you issue a rent increase.... (though not sure if it needs to be done before you send the notice or after they have agreed to the rent increase).

City_Dwellers
03-12-2008, 20:08 PM
Our tenancy agreement recently expired and upon discussion the landlord wanted to increase the rent and enter into a new contract. We agreed but with conditions that certain fixes were carried out first. The have been done but during this time an old problem of a leaking roof in the flat re-occurred and we added this to the conditions before paying the increase. We are paying the previous agreed rent in the meantime, and I believe we are on a periodic agreement by default.

The repairs to the roof have yet to be agreed and we are now 2 months on, the letting agent has now chosen to ignore our conditions and is demanding we pay the increase as well as the amount for the previous two months. We have yet to receive any documents to inform us of the increase - what are our rights?

I would appreciate any help with this situation.

jeffrey
04-12-2008, 10:04 AM
Was your fixed-term tenancy an AST/SAT? If so, a periodic continuation tenancy has now arisen in your favour; L cannot increase its rent except under s.13 of the Housing Act 1988 (or by granting a new Tenancy Agreement).

City_Dwellers
04-12-2008, 10:37 AM
Thank you for your response, to tell you the truth I am not sure which category the tenancy agreement would fall under. It was a 12 month agreement, with a break clause after 6 months providing 8 weeks notice either side. The rent per annum, I think, would be over the threshhold of what is considered an AST, not sure what an SAT is?

jeffrey
04-12-2008, 11:30 AM
Thank you for your response, to tell you the truth I am not sure which category the tenancy agreement would fall under. It was a 12 month agreement, with a break clause after 6 months providing 8 weeks notice either side. The rent per annum, I think, would be over the threshhold of what is considered an AST, not sure what an SAT is?
AT= Assured Tenancy, the generic name for a letting within Part I of Housing Act 1988, defined in s.1.
AST= Assured Shorthold Tenancy, defined in s.19A.
SAT= Standard Assured Tenancy, i.e. any AT that is not an AST.

If rent is at a rate > £25 000 per year, Schedule 1 to the Act prevents the letting from being an AT at all.

City_Dwellers
04-12-2008, 11:49 AM
Thanks again for the explain.

So the rent is > 25k, meanting no AT, what does this mean and where does that leave me in relation to the my position?

jeffrey
04-12-2008, 11:52 AM
Thanks again for the explain.

So the rent is > 25k, meanting no AT, what does this mean and where does that leave me in relation to the my position?
The Letting agreement is governed only by:
a. Common-law contractual rules, reading the Agreement's text as applicable literally; and
b. the limited benefit for T of the Protection from Eviction Act 1977.

sssammm
13-01-2009, 17:02 PM
I have a house converted into 2 flats, each tenant has their own AST,

one tenants agreement runs out soon,(12 months) on the 25th Feb 2009, can i just write him a letter telling him of an increase? or do i need to send the s13 thingy?

secondly, i have been shown by my local agent that i have been way undercharging, rents in similar properties as mine are at £900pcm, i have been charging £600 and £650, the £600 tenant has had no increase in 3 years!! would i be out of order to ask £750?

Any answers would be most helpful

thanks
sam

mind the gap
13-01-2009, 18:32 PM
You should give your tenants 30 days' notice of the increase - and bear in mind that if they don't like it, they can just walk away at the end of the fixed term of the AST without having to give you notice.

However, if you feel sure that the increase is appropriate, which on the face of it , it seems to be, then I don't think the figures you suggest are unreasonable...it's market forces, in the end, isn't it?

It is, of course, in the agents' interest for rents to increase (their commisison is usually a % of the rent), and you do run the risk that your tenants may say 'No thanks, we're off', leaving you with a void period and difficulty, in this present market, in finding new tenants....all factors you will no doubt weigh up.

How much do you think your tenants will want to stay?

Eliza
02-03-2009, 12:52 PM
How do I go about a rent increase on a fixed contract that lapsed into a rolling contract? How much notice do I have to give the tenants and is there a limit to the increase? They are awkward and it is a house share but they have made it very difficult to fill as they obviously don't want to share their huge space with another tenant.(untidy,dirty when viewing are taking place)I would actually like to give them notice but one of them is stating it must be two months which then going to make it very hard to rent as a whole or sell which is exactly what they are hoping because they have already told me they don't want to leave. I was thinking that perhaps a rent increase may just give them the incentive to look for something else. They do not do anything that is quite bad enough to get them evicted,just making awkward. Any ideas on the best way forward?

jeffrey
02-03-2009, 13:29 PM
You can increase rent by:
a. terminating Letting1 and granting Letting2 at higher figure; or
b. using any rent increase procedure stated in Letting1; or
c. (if Letting1 is an AST/SAT but there's no rent increase procedure in it) serving a Notice under s.13 of the 1988 Act.

Eliza
02-03-2009, 14:19 PM
I need them to leave. I have people willing to rent it as a whole. At the moment it is running at a loss as they are only covering 2 thirds as they have individual contracts so although their 3rd friend left they have not had to make his rent up. An error on my part I now realise.

Poppy
02-03-2009, 14:54 PM
You need to issue a Section 21 notice giving a minimum of two months' notice ending on the last day of a rent period.

Eliza
03-03-2009, 15:26 PM
If it is a monthly why does it have to be 2 months notice? I think that if i increase their rent they will leave far quicker.How much notice do I have to give to increase their rent?

alfie
07-03-2009, 19:25 PM
How much notice do i need to give to increase a tenants rent and do i need to serve them with any specific notices?

Thankyou in advance.

Preston
07-03-2009, 20:20 PM
How much notice do i need to give to increase a tenants rent and do i need to serve them with any specific notices?

Thankyou in advance.

Hi, if you are talking about a standard AST, then the rent can be increased either:

a) in accordance with the tenancy agreement or
b) under section 13 of the Housing Act 1988 or
c) by agreement between the parties.

An alternative to increasing the rent is to issue a fresh AST on a new rent, with the tenant's agreement.

For various reasons, many (perhaps most) ASTs do not include a rent increase clause and few tenants agree to rent increases (unless a new AST is issued at the same time) so the most common way of increasing the rent on an existing AST is (b).

Normally, for monthly tenancies, the minimum period of notice is one month.

Preston

P.Pilcher
07-03-2009, 20:21 PM
There are two ways: Firstly you may present your tenant with a new AST at a higher rent. If he refuses to sign and thus accept the new rent, you can use the section 21 process to require him to leave if he does not do so voluntarily. On the other hand you can use section 13. This cannot be used unless the fixed term of your AST has expired, must give the tenant at least one month's notice and the rent increase notification must be submitted correctly. In essence this form must tell the tenant what to do if he considers the increase excessive. It will instruct him to apply to a rent tribunal who will consider market rents charged in the local area for similar properties and rule accordingly. You can then accept this ruling or remove the tenant under section 21. There are a number of sources for the corrct forms. My usual one is http://www.oyezformslink.co.uk from which the form can be downloaded for a small fee. Further increases cannot be made for a year.

P.P.

jeffrey
08-03-2009, 21:45 PM
Remember that the s.13 procedure does not apply:
a. during a fixed term tenancy; nor
b. if the Tenancy Agreement contains its own rent increase mechanism.

lisa77226
16-03-2009, 14:40 PM
So much great information on this site for a person new to the UK (like me!!!).

This is a simple question... If my landlord decides to increase my rent, when my lease expires at the end of my 12 month agreement, is there a maximum amount (or percentage) she is allowed to increase it by?

Poppy
16-03-2009, 14:52 PM
There is no maximum or minimum.

jeffrey
16-03-2009, 14:56 PM
No rent restrictions, if:
a. it's within the Housing Act 1988; and
b. L is granting a new letting.

The only restrictions would be:
a. under section 13 (but only if it's a fixed term continuing as periodic);
b. under section 22 (but only if it's less than six months since the first letting began);
c. if the letting is an AST that began before 1997; or
c. if the letting is not within the 1988 Act at all but, instead, within the Rent Act 1977.

Timberline
09-04-2009, 20:02 PM
Hi All

We have had a tenant in a property of ours on an AST which has been periodic since 30/09/05, there are no clauses in it for rent reviews. Up until August 08 we had not increased the rent. We were good friends with the tenant and in August 08 we approached him and explained that we had not ever reviewed his rent and felt that an increase of £25 from the original £450 to take his monthly rent to £475 did not seem unreasonable. He agreed and even commented that other properties in the area of similiar type were far higher, we put the details in writing and to date he has paid the amount without question.

We realise that a section 13 notice should have been the correct procedure but all was amicable and not questioned.

Today we collect his rent and he has changed stance, stating that we should have given him a section 13 and he only agreed because we gave him the impression that we would evict him if he didn't pay, he then deducted what he described as his over-payment from this months rent..8 x £25..

Can anyone enlighten me as to our position.

Regards steve

johnboy
09-04-2009, 21:59 PM
serve a s13 and make the increase higher then £25. That a teach him.

Preston
10-04-2009, 14:23 PM
Hi All

We have had a tenant in a property of ours on an AST which has been periodic since 30/09/05, there are no clauses in it for rent reviews. Up until August 08 we had not increased the rent. We were good friends with the tenant and in August 08 we approached him and explained that we had not ever reviewed his rent and felt that an increase of £25 from the original £450 to take his monthly rent to £475 did not seem unreasonable. He agreed and even commented that other properties in the area of similiar type were far higher, we put the details in writing and to date he has paid the amount without question.

We realise that a section 13 notice should have been the correct procedure but all was amicable and not questioned.

Today we collect his rent and he has changed stance, stating that we should have given him a section 13 and he only agreed because we gave him the impression that we would evict him if he didn't pay, he then deducted what he described as his over-payment from this months rent..8 x £25..

Can anyone enlighten me as to our position.

Regards steve


Unfortunately for you, he can recover the "overpaid" amount unless you can prove that he agreed to the increase and ideally such agreement should have expressed in the form of a deed.

Preston

jta
10-04-2009, 14:44 PM
Unfortunately for you, he can recover the "overpaid" amount unless you can prove that he agreed to the increase and ideally such agreement should have expressed in the form of a deed.
Preston

Preston
Doesn't the point that he paid the increase for some time show that he did agree the increase?

I would certainly agree with Johnboy. Serve him a S13 and put the rent up to the going rate for your area. No more Mr. Niceguy!

Preston
10-04-2009, 14:52 PM
Preston
Doesn't the point that he paid the increase for some time show that he did agree the increase?

I would certainly agree with Johnboy. Serve him a S13 and put the rent up to the going rate for your area. No more Mr. Niceguy!

No, not necessarily. As the tenant in this case appears to have said, it might be that he thought he had to pay the increase rather than a case of mutual agreement. In my experience of such cases county court judges generally require the formalities to have been strictly complied with.

Many landlords - including some very large ones - have been caught out on this issue.

Preston

Krispy
10-04-2009, 15:24 PM
No, not necessarily. As the tenant in this case appears to have said, it might be that he thought he had to pay the increase rather than a case of mutual agreement. In my experience of such cases county court judges generally require the formalities to have been strictly complied with.

Many landlords - including some very large ones - have been caught out on this issue.

Preston
I have recently read S.13 and have realised that all the S.13 notices issued to me by the agent in the last 8 years are incorrect (the wrong starting dates for the rent increase) could I claim these rent increases back for the last 6 years?

johnjw
10-04-2009, 15:49 PM
The increase in rent of £25 pcm to bring the rent to £475, is a 5% increase over a 4 year period. This is a very small increase and if the tenant was satisfied with the property in 2005, he should be quite pleased now.
The tenant's initial comments indicated that he was indeed happy with the increase but maybe a "friend" has pointed out that the correct procedure was not followed and the tenant has lost the plot in the sense that the rules seem more important than a commonsense assessment
OR - maybe he wants to end the tenancy anyway and sees an opportunity to reclaim £200.
If both LL and T wish to continue the tenancy why not propose that the present agreement is ended by mutual consent and a new one is set up with the rent at £475 pcm and provision for a rent review every one or two years. If the true position is that the T wishes to leave, then Timberline may have to repay the £200.

MR M
10-04-2009, 16:21 PM
Would there still be the requirement to Issue the T with a S13, if there is a clause in the AST which reads:-

"The monetary amount of the Rent payable is to be reviewed/increased at the end of the Term of this Agreement or 12 months from 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."

or would a simple cover letter suffice which outlined the amount of Increase to the rent and the date when this would take place?

Preston
10-04-2009, 20:11 PM
I have recently read S.13 and have realised that all the S.13 notices issued to me by the agent in the last 8 years are incorrect (the wrong starting dates for the rent increase) could I claim these rent increases back for the last 6 years?

Hi

Possibly. As you will know, the notice must be in the prescribed form or "substantially to the same effect" and in addition must comply with the (sometimes complex) requirements with regard to dating.

If you are saying that the increases were applied too soon under these criteria, then you may have a good case. But you will need to work this through very carefully. Depending upon exactly what the defect in the notice was, you may find (just for example) that the first notice has no effect but that the second notice was good.

Give a little more detail if you can and I am sure you will get some more advice from myself or others.

Preston

Preston
10-04-2009, 20:19 PM
Would there still be the requirement to Issue the T with a S13, if there is a clause in the AST which reads:-

"The monetary amount of the Rent payable is to be reviewed/increased at the end of the Term of this Agreement or 12 months from 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."

or would a simple cover letter suffice which outlined the amount of Increase to the rent and the date when this would take place?

Hi

Although I think that this clause is very badly drafted (it is neither good plain English nor, clearly, has it been written by a lawyer with expertise in this field) it seems in essence to be very similar to the wording considered in the case of Contour Homes Ltd v Rowen. Contour's tenancy agreement read "the rent will be reviewed by the association in April of each year. The association shall give the tenant no less than four weeks notice of the revised amount payable". The Court of Appeal found the clause to have good legal effect.

Preston

Krispy
10-04-2009, 20:47 PM
Hi

Possibly. As you will know, the notice must be in the prescribed form or "substantially to the same effect" and in addition must comply with the (sometimes complex) requirements with regard to dating.

If you are saying that the increases were applied too soon under these criteria, then you may have a good case. But you will need to work this through very carefully. Depending upon exactly what the defect in the notice was, you may find (just for example) that the first notice has no effect but that the second notice was good.

Give a little more detail if you can and I am sure you will get some more advice from myself or others.

Preston

It was this part that caught my eye,

17. The third requirement, which applies in all cases, is that the proposed new rent must start at the beginning of a period of the tenancy. For instance, if the tenancy is monthly, and started on the 20th of the month, rent will be payable on that day of the month, and a new rent must begin then, not on any other day of the month. If the tenancy is weekly, and started, for instance, on a Monday, the new rent must begin on a Monday.

All my S.13 notices increase the rent from the 1st of the month, my Statutory Periodic started on the 10th of the month (rent payable monthly).

(even though my rent period starts on the 10th the AST says the rent is payable on the 1st of each month would that make a difference?)

MR M
11-04-2009, 18:05 PM
Would there still be the requirement to Issue the T with a S13, if there is a clause in the AST which reads:-

"The monetary amount of the Rent payable is to be reviewed/increased at the end of the Term of this Agreement or 12 months from 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."

or would a simple cover letter suffice which outlined the amount of Increase to the rent and the date when this would take place?


Hi

Although I think that this clause is very badly drafted (it is neither good plain English nor, clearly, has it been written by a lawyer with expertise in this field) it seems in essence to be very similar to the wording considered in the case of Contour Homes Ltd v Rowen. Contour's tenancy agreement read "the rent will be reviewed by the association in April of each year. The association shall give the tenant no less than four weeks notice of the revised amount payable". The Court of Appeal found the clause to have good legal effect.

Preston

Hi Preston. In what way is it badly drafted :confused: I have read it again a couple of times and it is clear to me.

Preston
11-04-2009, 18:57 PM
Hi Preston. In what way is it badly drafted :confused: I have read it again a couple of times and it is clear to me.

Well, I am sure the lawyers with drafting experience will be able to pull this apart far more effectively than me, but some initial comments:

1. what does a "/" symbol mean?
2. why refer to both landlord and the landlord's agent? Does that mean that the landlord is not entitled to appoint an agent when the landlord's agent is not referred to?
3. the agreement does seem to imply that if the review option at the end of the agreement is missed, then there can be no subsequent review?
4. why use the phrase "the monetary amount of the rent payable", when just "rent" would do?

And so on.

I could be wrong, but it just comes across as amateurish to me.

Preston

Timberline
11-04-2009, 21:54 PM
Thankyou all for your comments,

The T has already deducted the £200 himself by reducing the last month rent owed, he had a tantrum with his boss and lost his job last year, we supported him and even let him get into £1500 debt of owed rent and gave him a £200 Xmas bonus to help out!! He went on to HB and claimed the £475 from them, he also cleared his £1500 debt by the help of a charity who he also told about the £475 rent which he asked us to substantiate to them...

I do think he has a "friend" that is whispering in his ear, this is not the end of the saga, as he has now requested a "rent Book made up to date commencing from the beginning of his occupation" He signed a letter at the beginning of his tenancy stating that his monthly payment should be paid to our biz bank, this he has done until his job loss we now have had to chase him and only received cash in dribs and drabs for which he never requested a receipt and none were given...

He may well be fishing for eviction to be housed. I must admit i am astounded at his recent changed and at a bit of a loss as to his reasoning. An S21 beckons me thinks.

Regards steve

Rodent1
22-04-2009, 16:49 PM
I have a T who wants to remain in one of my props next month (End of 12 mth fixed period) for a further 9 mths to Feb10.

Normally I would just let it go periodic or just create a new ast, T specifically wants to protect tenure up to feb 10, but issuing new ast will cost me to reprotect dep.

As rent is not changing and period is being extended, what "form" do I need to use to extend AST and avoid paying to reprotect dep ?

jeffrey
22-04-2009, 17:06 PM
I have a T who wants to remain in one of my props next month (End of 12 mth fixed period) for a further 9 mths to Feb10.

Normally I would just let it go periodic and just create a new ast, T specifically wants to protect tenure up to feb 10, but issuing new ast will cost me to reprotect dep.

As rent is not changing and period is being extended, what "form" do I need to use to extend AST and avoid paying to reprotect dep ?
You can't have one without the other.
New letting (even a renewal, and even if no rent change) = deposit protection.
No new letting = no deposit protection .

Tell T that his/her insistence on new fixed term necessitates protection of deposit and that, because you don't want to, you'll have to ask him/her to choose between:
a. statutory continuation tenancy; or
b. being served with a s.21(4)(a) Notice.

lrshooter
24-04-2009, 17:22 PM
Hi there, I hope you can help me, I live in a Private Rented Property, over the last 5 years my landlord has raised the rent on this house from £320pcm to 450pcm, the property was in a poor state when we rented it hence the low rate (3 Bed End Of Terrace) but each year as my Fiancée and I have made improvements, they cite the improvements as a good reason to raise the rent. This was not so much of a problem, but now we have asked the Landlord if they could look at putting in a new kitchen as the one fitted is over 25years old and falling apart. We have been told that they won't do it this year as they want to spend money on their own house which is only five years old, but when they do put in a new kitchen they are going to raise the rent to £550pcm. Is this £100pcm jump allowed as it will then put this house out of our rental range.? Please can you advise.

Poppy
25-04-2009, 14:16 PM
What is the market rate for similar properties in that area?

The landlord can suggest an increased rent. There is no maximum. Perhaps try negotiating a lower increase. If you do not agree to the landlord's proposed rent increase, he may choose to evict you or you can give notice.

I assume your landlord appreciates the improvements. But if you are doing them voluntarily just be careful that you are not doing and spending too much. The property does belong to the landlord after all.

jeffrey
26-04-2009, 12:20 PM
I live in a Private Rented Property, over the last 5 years my landlord has raised the rent on this house from £320pcm to 450pcm.
By what method did L increase rent?
1. When it increases, does L issue a new AST?
2. OR are you still holding the original AST? If so, for what term was it granted, and when did/will that term expire?
3. Has L ever serve a Rent Increases Notice [s.13 of Housing Act 1988]?

Sue-Lee
25-06-2009, 01:24 AM
Could someone please tell me what date should be used for a Section 13 rent rise, should it be the 1st or the 20th?
(now a statutory periodic)

From the AST

The term of six months commencing on the 20th day of March 2006 and terminating on the 19th day of September 2006.
At the rent of £600 each calendar month to be payable in advance on the first day of each month, a proportion therof in respect of the period from the date hereof to the end of the calendar month current at the date hereof to be paid on the signing hereof.

Paul Gibbs
25-06-2009, 07:49 AM
The notice must be served to take effect from the beginning of a period of the tenancy. (i.e. 20th) The notice would have to run for at least 1 month before the new rent takes effect.

jeffrey
25-06-2009, 10:27 AM
Paul is right. That rent falls due on first day of each month is irrelevant for present purposes; the monthly rent frequency merely defines the statutory continuation tenancy's periodicity.

ch1
02-07-2009, 07:26 AM
I have a tenant on 6 month AST that expired last month, so is now periodic.
T has been there 6 months and is now in 7th month.

The AST issued by agent (but managed by myself) and has a rent increase clause at 12 months, however, as the rent was quite low to similar properties in same development to get T in quickly, I am looking to increase the rent before 12 months.

What are my options?

If tenant agrees can i use a S13 form?
issue a new AST?

Add an addendum to run with old AST stating T agrees to rent increase?

If T does not agree then can I inform them I intend to increase the rent after 6 months, as written in original AST?

Thanks

johnboy
02-07-2009, 08:51 AM
The easiest way is to just post a s13 with proof of postage and let it run periodically or get a new contract signed.

ch1
02-07-2009, 08:55 AM
Thanks.

But can I do this even though it's less than 12 months (52 weeks).

Going to see tenant soon, to do an inspection so would have the opportunity to discuss this first, but IF I get an agreement wanted to know if I can use S13 or another agreement letter stating rent increase which I would propose giving at least one month's notice.

jeffrey
02-07-2009, 10:48 AM
I have a tenant on 6 month AST that expired last month, so is now periodic.
T has been there 6 months and is now in 7th month.

The AST issued by agent (but managed by myself) and has a rent increase clause at 12 months, however, as the rent was quite low to similar properties in same development to get T in quickly, I am looking to increase the rent before 12 months.

What are my options?

If tenant agrees can i use a S13 form?
issue a new AST?

Add an addendum to run with old AST stating T agrees to rent increase?

If T does not agree then can I inform them I intend to increase the rent after 6 months, as written in original AST?

Thanks
You cannot use s.13 if there is already a rent increase clause. Please explain your:
a. paragraph 1 (=T is holding-over, after six-month term expired); as against
b. paragraph 2 (=T is within a fixed term with rent increase clause at twelve months).

ch1
05-07-2009, 07:26 AM
You cannot use s.13 if there is already a rent increase clause. Please explain your:
a. paragraph 1 (=T is holding-over, after six-month term expired); as against
b. paragraph 2 (=T is within a fixed term with rent increase clause at twelve months).

Just an update on this but first will answer the above question,
T is holding-over, after a six-month term has expired.
It is currently periodic.

Met T recently, T was not in favour of a rent increase and said if it went up to market rents (which I showed evidence of) T would move.

So, I left rent as it was for now, informing them if I were to do a rent increase of something in the middle of the 2 rents would let them know in writing and give them a minimum of a months notice. T was fine with this.

After 6 months then I would aim at achieving market rents -which I also informed them and by then IF they wished to stay the original 6 month AST does provide a rent increase clause after 1 year.

Thanks.

On another note -there is damage to the front door lock and the sides of door frame look like it's been plastered. T says it was there when they moved in. LA who found T says door was fine. End result is I cannot prove who damaged the door and lock. The T changed the locks when they moved in after informing me the door was not locking and sent me the locksmith bill which reports door has been subjected to some sort of assault, but what suprised me is someone has tried to cover it up too?! T denies it was them.
As this is going off topic will post it elsewhere.

Thanks once again.

shirleyb
03-08-2009, 15:34 PM
Sorry if this has been covered before but I can't find a definitive answer in previous posts.
Tenant moved in to a property of mine on12th April 2008 on a 6 month AST.
Obviously now a periodic tenancy.
However the original rent was £490 pcm. The HB were paying £472 and tenant was topping up by £18 pcm. Now Ive noticed that the HB payments have gradually increased to £487 pcm !! Therefore in theory my tenant has been overpaying for the last 6 months or so by £15 pcm. Am thinking of telling her the rent is going up to £505 pcm to allow for the increase in HB and keeping her top up at £18pcm.
I know lots of figures above, but do I simply tell her the rents going up or do I have to issue a section 13 ? Don't want to do nothing and then in two years time tenant says you owe me 24 x £15 and I don't want to put the rent down either....help !!

jeffrey
03-08-2009, 15:46 PM
1. You cannot simply keep the erroneous overpayment. That would be theft.
2. You can increase rent by using a Notice s.13 or by:
a. terminating existing AST under s.21(4)(a) or by T's agreement; and
b. issuing new fixed-term AST at increased rent (but this would necessitate re-protection of deposit).
3. Against the first payment due in either case, you must offset the £90 excess in hand.

shirleyb
04-08-2009, 16:35 PM
could I just tell the tenant the new rent , am sure she'll be ok with it, or do I need the actual s13 form ? If so are these forms available to download free anywhere ?

jeffrey
05-08-2009, 09:33 AM
could I just tell the tenant the new rent , am sure she'll be ok with it, or do I need the actual s13 form ? If so are these forms available to download free anywhere ?
Again: yes, you do need s.13 or a new AST. For Notices, click on 'AGREEMENTS' at top of page.

PRS
12-08-2009, 13:26 PM
As this has no been merged into a number of S13 queries it might be useful to point out that a couple of the comments made in the thread last year may well now be superceded by recent case law.

The generally accepted position (reiterated in this thread) has been that if there is a rent increase clause in a fixed term AST then this can be used to increase the rent even once its gone periodic after the end of the fixed term and so you dont have to use a S13 notice to increase the rent.

In London District Properties Management Ltd v Goolamy [2009] EWHC 1367 (Admin) the High Court ruled that this view was inaccurate. They took the view that section 5(3) of the Act meant that in a statutory periodic tenancy the provisions of section 13 would overrule any rent increase clause.

So it seems you must use the S13 process in such circumstances or you might face a claim for repayment of any increase of rent collected as it would not have been lawfully increased.

jeffrey
12-08-2009, 13:52 PM
That case makes sense, for otherwise there would have been little or no need to enact s.13.

WorzelG
29-09-2009, 16:09 PM
Hi guys

I am currently renting a flat with my girlfriend under an AST.

The current monthly rent on our flat is £225. This seems low but the place is in a state os disrepair, including damp in all the walls. But we are happy to compromise and pay this price in the short term, the rent as been at this level for 5 years (my girlfriend has lived there all this time).

Today the landlords have written to us an said they are increasing the rent to £600 as from next month. Can they do this!!?

They say its inline with market rent but it clearly isnt as you cant rent a decent house for less than that in my area. Thoughts guys?

havensRus
29-09-2009, 16:30 PM
sounds like the LL is trying to claw back the discount that youv'e enjoyed the last 5 years!!

How was the notice to increase given to you?

You should be served S13 notice for the proposed rent increase, at least one month before the increase is to take place. This gives you time to accept/renegotiate/reject/find new place/refer to rent assessment committee etc.

Talk to your LL and show comparables if you can find some. It is a huge increase.... shouldn't be landed on you without fair warning.

WorzelG
29-09-2009, 16:42 PM
sounds like the LL is trying to claw back the discount that youv'e enjoyed the last 5 years!!

How was the notice to increase given to you?

You should be served S13 notice for the proposed rent increase, at least one month before the increase is to take place. This gives you time to accept/renegotiate/reject/find new place/refer to rent assessment committee etc.

Talk to your LL and show comparables if you can find some. It is a huge increase.... shouldn't be landed on you without fair warning.

Is it reasonable to expect the condition of the property to be taken into account when setting fair rent. The place is in a bad state which we are prepared to put up with as its so cheap. It is structural damage which would cost £XX,XXXs to put right.

Will trying to negotiate with the landlord compromise my position at a fair rent hearing?

Thanks

jeffrey
29-09-2009, 17:16 PM
During a fixed-term AST, L cannot increase rent unless that right is expressly stated in it.

WorzelG
29-09-2009, 18:00 PM
During a fixed-term AST, L cannot increase rent unless that right is expressly stated in it.

I know this is odd but it appears both ourselves and the landlord have lost the tenancy agreement. Does anyone know what will apply in this case?

My girlfriend seems to think there was no fixed term, it was all a bit haphazard a few years ago though.

So we dont actually know/have proof of what the terms of the agreement are. Is there a default position in this case?

jeffrey
30-09-2009, 09:49 AM
I know this is odd but it appears both ourselves and the landlord have lost the tenancy agreement. Does anyone know what will apply in this case?

My girlfriend seems to think there was no fixed term, it was all a bit haphazard a few years ago though.

So we dont actually know/have proof of what the terms of the agreement are. Is there a default position in this case?
No. At most, the rent frequency/amount may show when rent is payable and how much. Why are people so inefficient?

dominic
06-10-2009, 12:42 PM
A periodic tenancy does not have to be a statutory one, can it not be a purely contractual periodic tenancy (i.e. parties agree form the outset that the tenancy is monthly and renewal automatically)?

jeffrey
07-10-2009, 13:40 PM
A periodic tenancy does not have to be a statutory one, can it not be a purely contractual periodic tenancy (i.e. parties agree form the outset that the tenancy is monthly and renewal automatically)?
Yes, they can. Contrast the pair of underlined bits of s.13(1) below:

13. Increases of rent under assured periodic tenancies.

(1) This section applies to;
(a) a statutory periodic tenancy other than one which, by virtue of paragraph 11 or paragraph 12 in Part I of Schedule 1 to this Act, cannot for the time being be an assured tenancy; and
(b) any other periodic tenancy which is an assured tenancy, other than one in relation to which there is a provision, for the time being binding on the tenant, under which the rent for a particular period of the tenancy will or may be greater than the rent for an earlier period.

pex
26-10-2009, 13:54 PM
Hello Everyone!

Thanks before hand for your help!

I have been renting a flat for more than a year now. The AST came to an end on the 16 of this month and ran into a Periodic Statutory Tenancy. Today, the 26th of the month, I have received a letter from the landlord stating the she wants to start a new contract from the 16th of November with an increased rent. I also have to react within 14 days.

I read a bit over the internet but can she do that?
Doesn't she have to give 1 month notice to increase a rent?

I think what I am actually paying is already slightly over the market price and the rents have recently gone a bit down in the area. Would it be worth contesting it?

Thank you very much for your help!

jeffrey
26-10-2009, 16:00 PM
There are three main ways to increase rent. Which one applies to you?
1. L grants new Agreement at higher rent.
2. L uses a rent-increase mechanism in the existing Agreement.
3. [Where there's no such mechanism] L serves a s.13 Notice on T.

pex
26-10-2009, 18:50 PM
thanks for your reply, Jeffrey.

1. for new agreement, she needs to give 2 months notice, no?
2. for the rent increase, there must be 1 month notice?
3. s13, this is not the rent increase mechanism?

cheers!

theartfullodger
26-10-2009, 18:59 PM
She thinks she can just write out-of-the-clear-blue and tell you she thinks the rent should go up..

Hmmmnn...
a) You can just say no (or simply do nothing) and the rent will not go up.. She may then decide to give you notice to quit (2 months min...). You would have to agree to (sign) a new tenancy or accept a change some other way, otherwise no rent increase!
b) You could always write back and say you think the rent shoudl go down. List a few local places, very similar, lower rents...


Cheers"!

Lodger

jeffrey
26-10-2009, 22:05 PM
There are three main ways to increase rent. Which one applies to you?
1. L grants new Agreement at higher rent.
2. L uses a rent-increase mechanism in the existing Agreement.
3. [Where there's no such mechanism] L serves a s.13 Notice on T.


thanks for your reply, Jeffrey.

1. for new agreement, she needs to give 2 months notice, no?
2. for the rent increase, there must be 1 month notice?
3. s13, this is not the rent increase mechanism?

cheers!
You have not actually answered the question, you know. Which procedure is L using in this case?

To respond to your own points:
1. No. L and T can jointly decide to create a new Agreement without Notice. Otherwise, yes- L would need:
a. to serve T under s.21, ending the old Agreement on at least two months' Notice; and
b. only then to enter into the new Agreement.

2. This depends on the rent review mechanism prescribed in the existing Agreement.

3. The s.13 procedures applies only if the Agreement does not prescribe its own mechanism. Yes, L needs to give T at least one month's Notice.

pex
27-10-2009, 07:16 AM
Hi Jeffrey!

Actually, she simply wants to start a new tenancy from next month (3 weeks time, now) with a higher rent (and higher deposit).
The property is managed by an estate agent, I don't know if it changes anything...



Hi Lodger,

I am actually preparing a letter... cheaper places, always really happy on the inspections (every 3 months), always paying on time... in a few words: "good tenants that other landlords would be happy to have" ;-)

cheers

jeffrey
27-10-2009, 09:21 AM
Actually, she simply wants to start a new tenancy from next month (3 weeks time, now) with a higher rent (and higher deposit).
But L cannot do that. The only way to bring-in a new Letting Agreement (unless you as T voluntarily consent) is:
a. to end the old one, by s.21 Notice; and
b. to offer the new one, beginning immediately after that Notice lawfully expires.

PaulF
27-10-2009, 09:23 AM
Actually, she simply wants to start a new tenancy from next month (3 weeks time, now) with a higher rent (and higher deposit).
The property is managed by an estate agent, I don't know if it changes anything...There is no contract between letting agent and tenant so that changes nothing. As Jeffrey states you can make the landlord resort to one of two methods but you still haven't answered J's Q about whether there is a mechanism within your exisiting AST to increase rent.

You can "buy" at least 2 months at your present rent by forcing the landlord to serve you with a S.21 Notice, or 28 days if the L wishes to use the S.13 route. If you want to give in to your L's demand for a new agreement in 3 weeks then you will have to live with the consequences. You've been given enough advice, so the next step is up to you!

pex
27-10-2009, 16:59 PM
Hello,

I have just checked my AST but there is no mention of rent increase.
So, it means she can (is it correct?):
- increase the rent using s13 (1 month notice and if I refuse, I can contact "revewers". sorry, I don't remember the exact name)
- give me 2 month notice and break the actual Statuory Periodic Tenancy

Here is what I am going to send to the Agency and I will add 10 examples of flats between 50 and 25 pounds cheaper than mine. Do not hesitate to comment (English is not my first language, hope you understand):

Dear M. Yates
Dear Landlord,

I am really surprised to see that the rent has been increased in the new Tenancy Agreement. According to the informations I found, the average rental price for 2 bedrooms flats went down by 4 to 5 % (according to the sources) in the last 12 months, and not up. I join a few examples of cheaper similar flats in the area. You actually have cheaper and interesting ones in your own port-folio.

I also would like to bring to your attention the fact that we always receive excellent comments during each of the “control visits” (and we also welcome the landlord’s visit). The person visiting the flat is always admiring how well it is maintained.
We are also in excellent relation with the neighbours, we are not creating any problem, we put flowers outside to make a nice atmosphere… I don’t think we are “difficult” tenants, you did not have a lot to do as manager of the property and we have always paid on time.

To conclude, we consider the increase of the rent not being justified considering the market and the care we bring to the flat.

westminster
27-10-2009, 19:00 PM
I hope you don't mind, but I've changed your letter a bit as it was easier than making comments on it.


"Dear M. Yates
Dear Landlord,

Thank you for your letter dated 26th October. I am very surprised that you are proposing a rent increase. According to my research, the average rental price for 2 bedroom flats in this area went down by 4-5% in the last 12 months, and not up. I enclose details of several comparable properties currently to let. You actually have cheaper properties in your own portfolio.

I also would like to bring to your attention the fact that we always receive excellent comments during inspections (and we also welcome the landlord’s visit). The person visiting the flat always admires how well it is maintained.

We are on excellent terms with the neighbours, we put flowers outside to make a nice atmosphere and we always pay our rent on time. We make very few demands in terms of managing the property. I would hope that most landlords would regard us as desirable tenants.

To conclude, we very much wish to continue our tenancy, and would be happy to agree a new fixed term, but feel that the proposed rent increase is not justified in the current market and considering the care we bring to the flat. I look forward to hearing from you and I trust that we can negotiate mutually acceptable terms."

This is obviously assuming you're happy to stay put, and want a new fixed term...

Provide actual printed details of the comparable properties with lower rents, either details direct from estate agents or print-outs from the agent's website showing details of the agent's name. It's not enough to give an anonymous list of properties. Try to find similar places in the same street or nearby similar streets, because rental values can vary a lot between one area and the next. (You might also consider viewing some of these cheaper properties if they are very similar? ;))

jta
27-10-2009, 19:11 PM
I hope you don't mind, but I've changed your letter a bit as it was easier than making comments on it.
"Dear M. Yates
Dear Landlord,

Thank you for your letter dated 26th October. I am very surprised that you are proposing a rent increase. According to my research, the average rental price for 2 bedroom flats in this area went down by 4-5% in the last 12 months, and not up. I enclose details of several comparable properties currently to let. You actually have cheaper properties in your own portfolio.

I also would like to bring to your attention the fact that we always receive excellent comments during inspections (and we also welcome the landlord’s visit). The person visiting the flat always makes comments about how well it is maintained.

We are on excellent terms with the neighbours, we put flowers outside to make a nice atmosphere and we always pay our rent on time. We make very few demands in terms of managing the property. I would hope that most landlords would regard us as desirable tenants.

To conclude, we very much wish to continue our tenancy, and would be happy to agree a new fixed term, but feel that the proposed rent increase is not justified in the current market and considering the care we give to the flat.
I look forward to hearing from you and I trust that we can negotiate mutually acceptable terms."This is obviously assuming you're happy to stay put, and want a new fixed term...

Provide actual printed details of the comparable properties with lower rents, either details direct from estate agents or print-outs from the agent's website showing details of the agent's name. It's not enough to give an anonymous list of properties. Try to find similar places in the same street or nearby similar streets, because rental values can vary a lot between one area and the next. (You might also consider viewing some of these cheaper properties if they are very similar? ;))

I've made a couple of other alterations as well. In red above.

pex
28-10-2009, 07:35 AM
WAOU! thank you very much for the letter!! Really nice!
I wanted to put that too "I would hope that most landlords would regard us as desirable tenants" but didnt know how to express it...
And really nice conclusion!

Yes, I would be happy to stay in that flat even at the current rent.

Thank you very much.

Ok, I will put full details of the other properties. What I had prepared so far was just the "pre-view" you get from different website with just a few lines, a picture and the price.

BTW, if I can help anyone in return, I would be happy ;-) I am not bad with computers and cars... lol.

Doxie
09-11-2009, 09:01 AM
How much notice does my landlady have to give me of her intention to increase the rent on the flat I am living in (it's a monthly periodic tenancy, shorthold tenancy agreement was not renewed after it expired)?

NoMoreFaith
09-11-2009, 11:14 AM
If you could clarify a couple of details;

Does your tenancy agreement have any clauses which state an increase in the rent at any specified period?
Is this rent increase within the first 12 months from the start of your tenancy at the property?

Making some assumptions that the tenancy does not state an increase of rent at a specific period and and assuming that the rent was to be paid monthly on the original shorthold tenancy, the landlord is required to give one months notice using a Section 13 notice of an increase in the rent.
If they do not use a section 13 to increase the rent, you are not under obligation to pay the increase in the rent, and it is unlikely that a court would find in the landlords favour for rent arrears (on the difference naturally.. not the whole rent) without it.

The rent cannot be increased earlier than one year from the start of the tenancy itself.

This increase should remain on the same day the rent is due. So if you pay rent on the 5th of the month, the increase in the rent should be from the 5th of the month.

Doxie
09-11-2009, 11:32 AM
Thanks, the info about the Section 13 notice is very useful. So far she has only communicated this by email.

You're pretty much correct in your assumptions. Here the answers to your questions though:

Does your tenancy agreement have any clauses which state an increase in the rent at any specified period?

As I wrote, the initial fixed term tenancy agreement expired in April 2008 and we did not renegotiate a new agreement then. But that initial agreement does not say anything about rent increases.

Is this rent increase within the first 12 months from the start of your tenancy at the property? Nope, I've lived there for 2 years now.

jeffrey
09-11-2009, 11:39 AM
So it sounds like L can increase rent by the s.13 procedure (if she complies with it formally and strictly).

PaulF
09-11-2009, 16:09 PM
Nobody has said this but if your L correctly serves a S.13 Notice on you, you have 28 days to reply otherwise the rent increase will automatically take place. However, until your L serves the S.13 Notice you can just keep paying the current rent. You can look it all up on the internet.

Snorkerz
21-11-2009, 18:34 PM
If I take a tenant on a 3 month AST, can I increase the rent for months 4 onwards using a section 13 notice? Or is there a minimum period during which rent can't be increased?

tom999
21-11-2009, 19:12 PM
I believe if using s.13, the date for rent increase, must be minimum of 12 months after date the tenant entered the property and minimum 12 months after any previous rent increase.

Alternative options:

Issue a new AST in month 4 with increased rent, or
Include a rent increase provision in existing AST.


Note: rent increases are typically done annually; unusual to do so after just 3 months.

mjbfire
09-01-2010, 15:42 PM
Further to my earlier post. Over 2 years ago we did a rent increase, by an exchange of letters which he agreed to in writting and paid the differance and had untill the end(13 months). And since his initial AST over 5 years ago a new AST has not been written.
Within intial contract(Only Contract) there is no mention of how rent increases are to be done.

His lawyers are claiming the because it wasn't done via a section 13 form and that in the letter, we didn't give him a chance to refuse the rent increase, we therefore forced the increase, even though we discussed the letter with him and gave him the opertunity to refuse(sadly no tape recording), but the lawyer says the rent increase is invalid because of this.

The reason I didn't use Section 13 of 1998 housing act is that I didn't want to force an increase as he wasn't a bad tennant, and it costs alot to replace a T, even though he was a bit fussy sometimes.
ie. wanting a new cooker when it was just a fuse, etc, but nothing serious, until he actual left.

There hadn't been a rent increase for nearly two years and he had 6 weeks notice before increase.

I have one other T like this, and read up a lot on it, and I think I am 90% correct, but always willn't to amit I wrong, but would like to know the exact legal position?

ie.
There are three ways
1) In contract
2) By Mutual Agreement
3) Section 13

Many thanks

Lawcruncher
09-01-2010, 16:12 PM
Sounds like a very weak argument from the tenant's lawyer. If the tenant paid the increase he agreed it.

Section 13 (2) says:

For the purpose of securing an increase in the rent under a tenancy to which this section applies, the landlord may serve on the tenant a notice in the prescribed form proposing a new rent...

The "may" is important. The procedure is not mandatory. Any doubt is removed by section 13 (5):

Nothing in this section (or in section 14 below) affects the right of the landlord and the tenant under an assured tenancy to vary by agreement any term of the tenancy (including a term relating to rent).

david12
17-01-2010, 10:23 AM
How do I go about increasing the rent with a tenant in an assured tenancy?
The rent which we receive is currently £60-£80 under the going rate. They also claim benefits from the council.

mjbfire
17-01-2010, 11:09 AM
There are four normal ways,

1) Is there a rent increase amount and period in the contract.

2) Will the tennant accept this amount of increase.( By Mutual Agreement).
You don't need to, but I would get it witnessed.

3) Do via section 13 of the housing act, which have certain rules, ie at least 12 months since last one, and a notice period(ie. normally more than tennants notice period). If he disagrees, it will then go to the RAC, and you will have to prove market rents.

4) Or if you really think it worth that much, serve a Section 21 and regain the properity and re-rent, you unlikely get the rent increase while this goes on. ie 3months.

Poppy
17-01-2010, 13:34 PM
Number 4 does not apply to assured tenancies. Did you notice that david12 says this is an assured tenancy?

For absolute clarity, david12 please confirm that you truly mean this is an assured tenancy and not an assured shorthold tenancy.

david12
17-01-2010, 13:39 PM
It is an assured tenancy..

jeffrey
18-01-2010, 14:40 PM
It is an assured tenancy.
This merely means that it's within the Housing Act 1988.
But is it an AST or an SAT?

jeffrey
18-01-2010, 14:41 PM
There are four normal ways,

1) Is there a rent increase amount and period in the contract.

2) Will the tennant accept this amount of increase.( By Mutual Agreement).
You don't need to, but I would get it witnessed.

3) Do via section 13 of the housing act, which have certain rules, ie at least 12 months since last one, and a notice period(ie. normally more than tennants notice period). If he disagrees, it will then go to the RAC, and you will have to prove market rents.

4) Or if you really think it worth that much, serve a Section 21 and regain the properity and re-rent, you unlikely get the rent increase while this goes on. ie 3months.
No.3 does not apply if the Agreement contains its own rent adjustment clause.

ghowse
09-03-2010, 10:16 AM
I have a statutory tenancy in a flat since my assured 6 month ran over time (I am happy with this).

I moved in on May 6 2009. Rent £250 (all in).

My rent was increased around Sep 2009 by £25 after 5 month - legal?

I now have another increase of £60 starting 6 May 2010 - legal?

All in all increases of £85 - the contract states it is linked to increases in RPI!

Shouldn't my next increase be from the last increase or at least from the end of the 6 months agreement.

Can anyone give a legal date as to when it should be applied.

Does anyone know the link for the official rent increase form from section 13 the housing act?

This seems to be a blanket £60 increase for all flats, over 20 in the block - is this correct?

Thankyou for your help

Gary Howse ghowse@hotmail.com

jeffrey
09-03-2010, 10:40 AM
1. Did AST contain any rent increase mechanism?
2. If not, did L serve any s.13 Notice?
3. Here's s.13- look at what it says re dates:

13. Increases of rent under assured periodic tenancies.
(1) This section applies to:
(a) a statutory periodic tenancy other than one which, by virtue of paragraph 11 or paragraph 12 in Part I of Schedule 1 to this Act, cannot for the time being be an assured tenancy; and
(b) any other periodic tenancy which is an assured tenancy, other than one in relation to which there is a provision, for the time being binding on the tenant, under which the rent for a particular period of the tenancy will or may be greater than the rent for an earlier period.

(2) For the purpose of securing an increase in the rent under a tenancy to which this section applies, the landlord may serve on the tenant a notice in the prescribed form proposing a new rent to take effect at the beginning of a new period of the tenancy specified in the notice, being a period beginning not earlier than:
(a) the minimum period after the date of the service of the notice; and
(b) except in the case of a statutory periodic tenancy:
(i) in the case of an assured agricultural occupancy, the first anniversary of the date on which the first period of the tenancy began;
(ii) in any other case, on the date that falls 52 weeks after the date on which the first period of the tenancy began; and
(c) if the rent under the tenancy has previously been increased by virtue of a notice under this subsection or a determination under section 14 below:
(i) in the case of an assured agricultural occupancy, the first anniversary of the date on which the increased rent took effect;
(ii) in any other case, the appropriate date.

(3) The minimum period referred to in subsection (2) above is:
(a) in the case of a yearly tenancy, six months;
(b) in the case of a tenancy where the period is less than a month, one month; and
(c) in any other case, a period equal to the period of the tenancy.

(3A) The appropriate date referred to in subsection (2)(c)(ii) above is:
(a) in a case to which subsection (3B) below applies, the date that falls 53 weeks after the date on which the increased rent took effect;
(b) in any other case, the date that falls 52 weeks after the date on which the increased rent took effect.

(3B) This subsection applies where:
(a) the rent under the tenancy has been increased by virtue of a notice under this section or a determination under section 14 below on at least one occasion after the coming into force of the Regulatory Reform (Assured Periodic Tenancies)(Rent Increases) Order 2003; and
(b) the fifty-third week after the date on which the last such increase took effect begins more than six days before the anniversary of the date on which the first such increase took effect.

(4) Where a notice is served under subsection (2) above, a new rent specified in the notice shall take effect as mentioned in the notice unless, before the beginning of the new period specified in the notice:
(a) the tenant by an application in the prescribed form refers the notice to a rent assessment committee; or
(b) the landlord and the tenant agree on a variation of the rent which is different from that proposed in the notice or agree that the rent should not be varied.

(5) Nothing in this section (or in section 14 below) affects the right of the landlord and the tenant under an assured tenancy to vary by agreement any term of the tenancy (including a term relating to rent).

ghowse
12-03-2010, 09:30 AM
When I moved into my property the sales guy told me and 27 other tenants that the rent included the electricity, water rates and council tax.

After having signed the agreement we all realised that this was not so and we would have to pay for these ourselves.

Can we do anything because we think he is still doing this!

Gary ghowse@hotmail.com

PaulF
12-03-2010, 09:39 AM
When I moved into my property the sales guy told me and 27 other tenants that the rent included the electricity, water rates and council tax.

After having signed the agreement we all realised that this was not so and we would have to pay for these ourselves.

Can we do anything because we think he is still doing this!

Gary ghowse@hotmail.com Of course this should be reflected within your tenancy agreement, and if you missed it by failing to read it thoroughly there is little that you could do. Otherwise why don't you all write to the guy confirming what you say, and that you were led to believe otherwise? He might find it very difficult should such overwhelming evidence be presented to him not to stand by his original statement.

jeffrey
12-03-2010, 10:18 AM
When I moved into my property the sales guy told me and 27 other tenants that the rent included the electricity, water rates and council tax.

After having signed the agreement we all realised that this was not so and we would have to pay for these ourselves.

Can we do anything because we think he is still doing this!

Gary ghowse@hotmail.com
What 'sales guy'?
Did you purchase the flat (long-leasehold) or are you only a tenant?
If you're only a tenant, what does the Letting Agreement say? That's what counts, rather than the 'sales guy'.

westminster
12-03-2010, 10:38 AM
I don't understand two things.

You posted this on another thread (http://www.landlordzone.co.uk/forums/showthread.php?t=26753) three days ago.


I moved in on May 6 2009. Rent £250 (all in).

My rent was increased around Sep 2009 by £25 after 5 month...

...so how have you only just discovered, after ten months, that the rent is not inclusive?

And how is it possible that all 28 tenants did not read their tenancy agreements before signing them?

sandmonster
21-03-2010, 16:13 PM
My tenants have ASTs which have expired into statutory periodic 3 months ago. I have discussed with them the possibility of increasing the rent from May and they are happy to do so. But we are all happy to continue on the existing AST and periodic without having to start a new AST or changing the deposit requirements. Is there anything I need to do or be aware of to prevent future disputes and eviction problems ?

P.Pilcher
21-03-2010, 16:55 PM
If the tenant is happy with the proposed increase you need do nothing, but just start collecting the increased rent. You could notify them on the prescribed form under section 13 however to tell them what to do if they disagree with the increase. The form tells them to just go ahead and pay it if they do not disagree. It is normal, and a requirement under section 13, that one month's notice be given of a rent increase.

P.P.

jeffrey
21-03-2010, 19:24 PM
Note: s.13 does not apply if the existing Letting Agreement already contains a rent variation mechanism.

mjbfire
22-03-2010, 22:03 PM
If they haven't had a rent increase in the last year and you give them a month notice, serve them with a S13 and get them to initial your copy, they shouldn't mind as they already agreed to to the rent increase.
It's may not be what the law says, but if you went to court, could you stand up and agrue your case. I been in that situation, and even had his agreement in writing and folded under the lawyers pressure, so I just settled, and had to pay back over a years worth of rent increase, for not doing point 4.

So what I do now.

1) Do a rent review comparing rent against other simular P in the area, to be sure that they are paying the going rate. And as documention, if it goes to RAC.

2) Send a letter to T 6-8 weeks before rent increase, suggesting what you think the new rent should be.

3) If they disagree, a) ask them what they will accept, b) check your rent review data.

4) If you and them agree, with the figure 2 or 3a, serve them with a S13, even though I think the law says you don't need to.

5) If you and them can't agree, serve the s13 with the figure in 2, and a S21( but only if the rent increase is worth it) and see if they now want to come to some sort of an agreement and repeat from 2.

6) Goto the RAC using the documentation in (1)


Does anybody see any problems, with the above procedure.

northwest landlord
11-04-2010, 21:18 PM
Does anyone have any useful information on the procedure for rent increases.

1. Any specific formula?

2. How often (annual for example)?

3. What is the correct method of notification to tenant?

4. What is legally correct?

5. Does the rule vary for different types of tenancys?

kind regards

P.Pilcher
11-04-2010, 22:43 PM
If the tenancy is in England and Wales and is an assured shorthold tenancy, then the rent can be increased by using section 13, provided that the fixed period of the AST has ended and it is thus a statutory periodic one. To do this, the tenant must be given a month's notice of the proposed increase. It must be given on the correct form which tells the tenant what to do if the increase is considered excessive and the rent then cannot be further increased for 12 months.
Alternatively, a section 21 notice can be served on the tenant giving two month's notice which must not end before the end of the fixed term. Before it expires, the tenant can be invited to sign a new AST at the new rent. If the tenant refuses to sign and thus pay the new rent, then he can be asked to leave/evicted when the section 21 notice expires.

P.P.

northwest landlord
11-04-2010, 23:08 PM
Thanks for responding so promptly, where would I be able to find an example of the s13 form required?

Kind regards

Snorkerz
11-04-2010, 23:25 PM
http://www.statutelaw.gov.uk/content.aspx?LegType=All+Legislation&title=Assured+Tenancies+and+Agricultural+Occupanci es&Year=2003&searchEnacted=0&extentMatchOnly=0&confersPower=0&blanketAmendment=0&sortAlpha=0&TYPE=QS&PageNumber=1&NavFrom=0&parentActiveTextDocId=826890&ActiveTextDocId=826903&filesize=357 is the correct wording

jeffrey
12-04-2010, 09:45 AM
If the tenancy is in England and Wales and is an assured shorthold tenancy, then the rent can be increased by using section 13, provided that the fixed period of the AST has ended and it is thus a statutory periodic one.
But rent can alternatively be increased during/after fixed term, if the Letting Agreement contains a rent-alteration mechanism.
In such a case, s.13 cannot apply at all.

Charles19
12-04-2010, 09:53 AM
But rent can alternatively be increased during/after fixed term, if the Letting Agreement contains a rent-alteration mechanism.
In such a case, s.13 cannot apply at all.

Good point - My AST has a rate increase built in (at end of T) of BOE base rate plus 2.0%.
Chas.

Snorkerz
12-04-2010, 10:02 AM
Good point - My AST has a rate increase built in (at end of T) of BOE base rate plus 2.0%.
Chas.Your choice, but if find it interesting that you have used the BoE rate to base your rent increase on. As there is no direct correlation between interest rates and inflation would you not be better using RPI or one of the governments other inflation indices? Was there a specific reason for using interest rates?

Charles19
12-04-2010, 10:07 AM
Your choice, but if find it interesting that you have used the BoE rate to base your rent increase on. As there is no direct correlation between interest rates and inflation would you not be better using RPI or one of the governments other inflation indices? Was there a specific reason for using interest rates?

Here it is...I have used RRI !

2. The Landlord lets and the Tenant takes the Premises for the Term and the Rent specified above with the proviso that in the event of the Tenancy Agreement extending beyond the end of the Fixed Term then the rental amount may be increased annually from the commencement date by (i) a percentage identical to the percentage increase in the Retail Price Index last published prior to the time of renewal, PLUS (ii) 2.00%. For example if the Retail Price Index was 2.00%% then the rental increase would be 4.00% in total and to be annually applied.

Chas.

jeffrey
12-04-2010, 10:19 AM
Instead of "plus 2%", I'd say "plus two percentage points".
Saying 'plus 2%' merely adds one-fiftieth!

Charles19
12-04-2010, 10:23 AM
Instead of "plus 2%", I'd say "plus two percentage points".
Saying 'plus 2%' merely adds one-fiftieth!

I thought this may be the interpretation hence my example taking it to 4.00% increase. But I shall make the word change to ensure its as I want!
Thanks
Chas.

nugget
19-04-2010, 10:29 AM
Hi everyone,

Just a quick piece of advice needed, I am a tennant and have a 12 month tennancy contract which is about to expire in two months my landlord wants to keep me as a tennant and extend the contract (or should I say give me a notice of eviction and start me on a new contract) but increase the rent from £850 to £1100.

In my original contract it says this

9.2 Rent Review
9.2.1 In the case of tenancies in excess of 12 months, it is agreed that the rent as defined in this Agreement will be reviewed in an upwards only fashion on the anniversary of this tenancy and upon each subsequent anniversary in line with the Retail Price Index (RPI) increases for the previous 12 months and subject to a minimum of 3% and a maximum of 7.5%.

Does this just mean if I had a 2 year contract he would be bound by this or does this apply to me even though my contract is only 12 months and I want to stay.

I do agree I'm paying slightly below market value, as I moved in to this new build when there was still building work going on for his other properties, but I'm a good tennant :)

Thankyou very much,

Nugget

jeffrey
19-04-2010, 10:33 AM
Your tenancy is for one year, so that clause does not apply of course. If it did (e.g. your tenancy was for two years), both L and you would be bound.

Charles19
19-04-2010, 10:52 AM
[QUOTE= subject to a minimum of 3% and a maximum of 7.5%.

[/QUOTE]

Does this not mean that the maximum rent for a new AST could be £913.75 if the original tenant remained?
This is the 7.5% maximum increase indicated.

Chas

P.Pilcher
19-04-2010, 11:17 AM
I don't think so. The AST was for 1 year, so the clause does not apply in any case. The agreement can be left to remain and become statutory periodic and section 13 of the housing act can be used to increase the rent. This is subject, if the tenant objects to the proposed increase, to adjudication by a rent assessment panel. However, the easiest way to increase the rent to anything that the landlord wishes is to serve the tenant with a s21 notice and then offer a new AST at the increased rent. Tenant can then take it or leave it, and leave the property. Of course this cannot be done until the expiry of the fixed term of the original AST.

P.P.

nugget
19-04-2010, 13:37 PM
Yeah, I think I've already received the s21 (or something to that effect) in anticipation of us either renewing at the increased rate on a new contract or leaving mid June. Seems a tad unfair but I suppose if he feels he's loosing out on rent then business is business, looks like I better get property searching.

Thanks for the advice guys x

Charles19
19-04-2010, 13:44 PM
Yeah, I think I've already received the s21 (or something to that effect) in anticipation of us either renewing at the increased rate on a new contract or leaving mid June. Seems a tad unfair but I suppose if he feels he's loosing out on rent then business is business, looks like I better get property searching.



But if you really like the place you are at dont run away from having a difficult conversation with your LL. He may agree a deal near to what you can afford and think is fair - could happen? Just to be sure there is not a deal to be done.
Chas

nugget
19-04-2010, 14:19 PM
Cheers Chas, you're right a deal probably could be done since I genuinley believe he'd like to keep us, but I don't think he'll drop it under £1000, quite frankly I'm just going to look at it as an opportunity to find somewhere much cheaper so I can save a 10% house deposit. :)