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Mar, 2017

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  1. #1

    Default Section 13 - Periodic Tenancy

    My tenants' last Fixed Term AST (England) ended in late 2016 and since then I have let it go Periodic. They have a monthly tenancy period and have been in the property now for 21 months.

    I am currently doing the first rent review on the property and am not understanding whether or not I should actually complete and attach a Section 13 to the Rent Review Notice I will be sending them; particularly surrounding Note 9 on the form:-

    9 Do not use this notice if the tenancy agreement contains a term allowing rent increases, or there is some other basis such as a separate agreement with the tenant for raising the rent. Any provision you rely on needs to be binding on the tenant. Legal advice should be sought if there is any doubt on this score.

    The Tenancy Agreement for this property does contain a Rent Review clause (which I no longer include in Agreements for my other properties) which reads like this:-

    - A rent review will take place in twelve (12) months from the Commencement Date of this Agreement.
    - Subject to compliance with the requirements specified in Clause 7.4.2, the Landlord may increase the rent on each review date by a percentage of the current rental amount, which will be not less than 3% and not more than 5%.
    - The Landlord may serve a rent review notice on the Tenant not less than twenty-eight (28) days but not more than ninety (90) days before the relevant review dates, specifying:-
    a) the percentage by which the rent will increase on the relevant review date, and;
    b) the new rent payable from the relevant review date

    The letter I will be sending the Tenants will of course include all of the above (although the increase is only 2%) but I am unsure about whether or not I should include the formal Section 13 notice as well?

    I am also confused by this Note 18:- (the tenancy period runs from 7th - 6th but the rent is paid on 1st):-

    18 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.

    Could you please help with these two questions?

  2. #2

    Default

    There doesn't seem to be any provision for a 2% rent increase.

  3. #3
    Join Date
    Nov 2016
    Posts
    1,014

    Default

    I agree with noggin that your agreement states not less than 3%. However I can't see the tenant arguing they wish to pay an extra 1% based on the contract!.

    It also clearly tells you not to include, as tenancy agreement already includes rent increases.

    I'm not sure that you can apportion the rent increase into the monthly payment as apportionate law apparantly doesn't apply to rent in rent in arrears, it maybe that you have to wait until the following month to apply it?

    Maybe someone else can advise?

  4. #4
    Join Date
    Nov 2010
    Posts
    7,763

    Default

    From what you quoted the rent review may only occur once 12 months after the beginning of the "Agreement" so arguably you can't use it anymore, or you can't use it yet.

    You can use s.13, though.

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