Most landlords, (if not all), will need to increase the rent on their property at some point in their lifetime. If you have a tenant in the property, it’s not as simple as dictating to them the new price of the rent when you want to increase it.
To formally increase the rent on a domestic properties, you must serve what is referred to as a Section 13 Notice (sometimes called a “Form 4”).
To ensure you are increasing the rent on your domestic properties the right way, you must check the following:
- Is the tenancy still within the fixed term?
This is vital to check when thinking of increasing rent. Most of the time, a tenancy must be outside the fixed term, or on a periodical/’rolling’ basis before you can formally serve notice of a rent increase.
- Have you increased the rent already?
Landlords may only formally increase the rent on a property every 52 weeks. You may need to check when the last rent increase on your tenant was before doing so again.
- When have you stated when the rent increase?
If you serve a Section 13 Notice, the date the rent increases will need to fall on the start date of the new term. Make sure you’re aware of the term in your tenancy agreement, or what the ‘rolling’ term is otherwise. (E.g: Daily, weekly, monthly etc.)
- Does your tenancy agreement have a “rent review clause”?
If your tenancy agreement has a clause that allows for a change in rent, you may not need to serve a Section 13 Notice.
It’s imperative that you’re certain on the above points, as increasing the rent unlawfully can result in your tenant refusing to pay or even going to a Fair Rent Tribunal, which will cost you valuable time and money.
The process of increasing the rent for your tenant can be confusing and complex, so be sure to do thorough research beforehand.
Or, if you’re confused on any of the points above, feel free to discuss it with us:
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