Landlords have been warned that getting the new Form 4A rent increase process wrong could invalidate or delay a proposed rent rise, as a property management platform launches a free tool to help them complete the process.

Since 1 May, landlords must use a Section 13 and serve Form 4A whenever they plan to increase rent – even if the tenant has already agreed to the new amount.

Landlords need to give at least two months’ notice, with rent increases generally limited to once a year and tenants able to challenge a proposed increase at the First-tier Tribunal if they believe it is above the open-market rent. Following a challenge, they won’t be required to pay more than the rent originally proposed.

Informal emails, WhatsApp messages and rent-review clauses can no longer be used in place of the prescribed process, while a clause agreed before 1 May but due to take effect after that date does not apply.

Records

Lendlord says its new tool - which sits alongside tenancy records and the compliance hub - is designed to reduce the risk of errors by using tenancy information already held on its platform to generate the prescribed notice. Once completed, the notice can also be signed electronically and shared digitally with the tenant, provided the method of service is permitted under the tenancy agreement.

Aviram Shahar, co-founder and CEO (pictured), says that for assured periodic tenancies in England, using the correct form and getting the timing right are essential, although when using the tool, landlords still need to check the details and serve the notice correctly.

“The process should provide clarity for both sides: landlords need to know when an increase can take effect, while tenants need proper notice and a clear understanding of their rights,” he adds.

DPS

Almost a third (32%) of landlords told The Deposit Protection Service (The DPS) that they are planning to leave rents as they are, in its annual survey – conducted just after 1 May - while 19% said they automatically increase rents every year.

MD Matt Trevett believes the landlords surveyed have been in ‘wait and see’ mode during the lead up to the enforcement date of the Renters’ Rights Act. “These latest data suggest that most landlord respondents will be either keeping or raising rents in the future,” says Trevett. “Landlords experiencing mortgage and other costs are looking to make use of the rent raising mechanisms specified by the Act.”

‍