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Increase rent - section 13 Form 4?

Started by legepe, July 02, 2024, 11:41:48 AM

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legepe

Hi all
I have a property thats been rented since 2016 and its never had a rent increase
It was originally rented to a couple so both their names are on the AST contract, but around 5 years ago, they split up and I gave the remaining tenant a letter to provide to local council benefits, stating that she is living in the property alone, and she is fully responsible for payments
I intend to increase the rent, and use a section 13 - form 4 to notify her of the increase
Can anyone please tell me, is it still the section 13 - form 4 that I use for this, and should I include her ex partner on the section 13 as he is still on the AST contract?
Any advice very much appreciated
legepe

jpkeates

You can only use a section 13 notice if the tenancy agreement has no mechanism for an increase (or any limit on an increase).

Yes, it's form 4 on the .gov.uk web site.
Yes, both names.

Presumably you have a reason for not simply agreeing a new rent with the tenant.

legepe

#2
Quote from: jpkeates on July 02, 2024, 12:22:40 PMPresumably you have a reason for not simply agreeing a new rent with the tenant.
I havent even thought about agreeing new rent with the tenant. I've never increased it in 8 years, and thought that I had to do things an official way, I will check the contract though to make sure

Hippogriff

The point is - if you just talk to / or email your Tenant and agree the rent is going up, then you don't need to check anything.

I've been a Landlord for a long time, now, and I've never used a Section 13 in my time. Your problem is that you're mismanaging your investment (you're saying you've not increased the rent in eight years as though that's a good thing, it isn't) and you aren't equipped for your role, that's the crux of the issue here.

You may meet resistance, of course, depending on your Tenant's situation and / or the amount by which you intend to increase by - but I suspect anyone would prefer an initial communication before a formal-looking Notice. You don't comment on whether your proposed increase is what anyone would think of as reasonable or are you trying to recoup eight years of increases in one fell swoop now that you're paying some attention? A Section (of anything) is something I'd see as a last resort (but not the final solution).

Examples:
  Current rent of £750 rising by £25 per month = reasonable.
  Current rent of £750 rising by £150 per month = not.

legepe

Quote from: Hippogriff on July 02, 2024, 02:50:11 PMThe point is - if you just talk to / or email your Tenant and agree the rent is going up, then you don't need to check anything.

I've been a Landlord for a long time, now, and I've never used a Section 13 in my time. Your problem is that you're mismanaging your investment (you're saying you've not increased the rent in eight years as though that's a good thing, it isn't) and you aren't equipped for your role, that's the crux of the issue here.

You may meet resistance, of course, depending on your Tenant's situation and / or the amount by which you intend to increase by - but I suspect anyone would prefer an initial communication before a formal-looking Notice. You don't comment on whether your proposed increase is what anyone would think of as reasonable or are you trying to recoup eight years of increases in one fell swoop now that you're paying some attention? A Section (of anything) is something I'd see as a last resort (but not the final solution).

Examples:
  Current rent of £750 rising by £25 per month = reasonable.
  Current rent of £750 rising by £150 per month = not.
You are very harsh with youre assumptions!? Firstly, I would think it wise to check the contract regardless, NO? I would have risen the rent before now if they were still a couple. but I have left it as is for this period of time because she has been on her own, and I felt she was a good tenant. However, this is something you are not putting into your assumptions here with your advice. I would not be looking to recoup 8 years worth of rental either! Your examples are your examples, and its your opinion, but saying this, I do get your meaning, after all, I appreciate and will consider your advice

Hippogriff

There's always "reasons" people have that are really "excuses" for mismanagement. If the Tenant(s) can afford the rent (you haven't said anything about a reduction in the timeframe you refer to) then they can afford the increases that come with renting - you have just swallowed cost rises on the Tenant's behalf.

Maybe you haven't understood - the advice (which seems like common sense to me) is that if you agree a rent increase then there's no need to check anything. So, in answer to youre (sic) question - no. You'd likely check it if you ran into trouble... but do you surmise you will run into trouble (that's why I commented on anything unsaid - irascible / unapproachable Tenant)?

My examples are based on a nod to Inflation along with a generalised understanding of implementing rent increases many times before. The best management approach (which you don't subscribe to) is for regular, modest rent increases - ones that almost become predictable - it's called "boiling the frog" and, although it might sound evil, it's actually beneficial for all parties.

A rent increase that is predicted and is reasonable is hardly ever protested.

havens

Yeah, you'd still use the Section 13 - Form 4 to notify about the rent increase. As for the ex-partner, since his name is still on the AST contract, you should include him on the notice as well. It's probably worth having a chat with the tenant about it beforehand to make sure she's aware and to clear up any confusion. That way, it's all above board and there are no surprises.