Updating post from Reddit.
My tenants have been in the property for several years. I have never raised the rent.
The rent was below the market rate when they moved in. Right Move and On the Market show similar properties, within half a mile, renting for £600 more per month.
I have no intention of raising it by that amount, even if I could, but I do need to raise the rent. I only have a couple of years left to clear the mortgage and, at the current rent, I won't be able to do that.
Is there is a percentage that I am allowed to raise it by? How much notice do I need to give?
You can do it once every 12 months during a periodic tenancy. You need to give them a months notice.
You need to serve them a form 4
https://www.gov.uk/guidance/assured-tenancy-forms
I’d personally speak to them about it first and ideally verbally agreeing it and then serve the notice… but you could just serve it out of the blue.
I don’t think there is a specific % limit (yet) that you can raise it by but if they don’t agree with the proposed rent they can go to tribunal and if it’s a grossly unfair amount then a tribunal may set a lower rent.
Thanks
This is wrong by the way. You are referring to assured tenancies. The OP has an ASSURED SHORTHOLD tenancy. OP needs a section 13 notice.
OP can raise rent to whatever he likes once per annum. Be aware that tenants can take you to a tribunal if they think it’s too high.
I make the assumption it’s an AST because you say the tenants have been there for several years - regulated tenancies are pre 1989, but I’m going to assume they’ve not been in there that long, so AST it is. Section 13 👍
You use Form 4 to give notice of a rent rise under S13 of the Housing Act...... Smh
To be clear, that is the correct form. From the same link:
This form should be used by landlords when proposing a new rent under an assured periodic tenancy (including an assured shorthold periodic tenancy) of premises situated in England.
You should get close to market before the new rules come in.
After the new rules a tenant can appeal against any rent increase and send to a tribunal for a decision. I expect this process to be slow. Rent increases if approved from the date of the decision. This will reduce the landlord’s ability to match market rent levels.
This! Currently the rent tribunal will tell you if the property is above or below market rate. The new proposal is that it will only tell you if it’s fair or too high. Section 13s will need to be given in advance so that any objections are made well before increase due date.
When do the new rules come in and where can I find them?
The NRLA is a good source of information about all the upcoming rule. They just sent a letter to the government. https://www.nrla.org.uk/download?document=1875
I I’ve got some long standing tenants too but ive been contemplating raising the rent too. They generally give me an easy life. This year it will probably have to go up.
Depends if you are in Scotland or England tbh.
But that aside think of the tenant in your equation. Give them plenty of notice and don’t raise it to the moon.
I’d recommend 10% as the most to put it up, and give 3 months notice - gives them time to adjust their finances.
Ah, sorry, England.
I have no intention of raising it too high. They seem to be good tenants and nice people. I have never met them. I live in New Zealand. I used to rent it to a friend. He moved away for work. The 'new' tenants were the next door neighbours. But they had a bad landlord and my house is nicer and bigger.
England certainly is more lax about putting up the rent than Scotland but in any case I’d still keep things as balanced as possible
Thanks
What does your contract say? - it will likely be inflation plus 3%
I'm the same as you, have good tenants that have been in for years with very few rent increases and are a few hundred below market rate. With the renter's reform bill coming in, I think it makes sense to raise the rent every year without fail - just match the inflation amount, and it will mean you stay closer to market rate
We just raised ours after remortgaging, the property was £200 under market rate.
The increase was the first in 2 years, we increased by £100 which h we believe reflects inflation of er the last 2 years.
24 informed them via our WhatsApp goat the. Sent a form4 of section 13. All went well. We are probably going by to move to small incremental increase in line with inflation.
Don’t have long to make these changes. Chop chop
And the renters reform bill basically means you need to be at market. As increases will be capped. So that’s means regular rises.