In This Guide
Administration
Being a landlord
Buy to let investment
Choosing the property
Finding tenants
Letting property
Lettings agents
Levels of service
Preparing the property
Problem tenants
Tenancy
1. Types of tenancy
2. Resident landlords
3. Duration and termination of the tenancy
4. Rent increases
5. Rent assessment committee
6. Tenancy agreements
7. What they contain
8. Example agreement
9. Other issues
Tenancy
Rent increases
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You can review the rent as often as is specified in the tenancy agreement. If the agreement is for a fixed term, the normal practise is for the rent to remain constant for the duration of the term. However, it is also possible, with prior agreement, to review the rent at regular intervals throughout the tenancy. If the agreement is a contractual periodic tenancy, the tenancy agreement should specify how often the rent will be reviewed and how the review will take place.
With a fixed term tenancy, you can only put the rent up by more than the amount specified in the tenancy agreement if the tenant agrees. Which let's face it, is unlikely. If the tenant does not agree, the you will have to wait until the end of the fixed period before you can raise the rent.
If the tenancy is a contractual periodic one, you may agree in writing an increase in rent with the tenant. If they refuse, you can use a formal procedure outlined below, whereby you propose a rent increase to be payable a year after the tenancy began. You can then propose further increase at yearly intervals. If the tenancy has become a statutory periodic one due to a fixed term tenancy ending and lapsing, you have the same options open to you as with a contractual periodic tenancy.
According to the 1988 housing act, the formal procedure for proposing an increasing rent is via a special form called a 'Landlord's notice proposing a new rent under an Assured Periodic Tenancy or Agricultural Occupancy'. This can be obtained at a legal stationers or from a rent assessment panel and can be used with both assured tenancies and assured shorthold tenancies.
You must give the tenant at least a months notice of the proposed increase, or more if the rent period is longer. If the tenant agrees with the proposed rent increase, then he or she should simply start paying it from the date specified in the proposed notice.
If the tenant does not agree with the proposed increase, he or she must apply to a rent assessment committee to decide what the rent should be. This must be done before the date on which the new rent would fall due.
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