How to Increase the rent
The Tenant can only have their rent increased at the end of the fixed term of a contract if:-
- There is a clause in the tenancy agreement allowing such
- The issue and acceptance [by conduct] of a rent Increase Notice Rent Increase Notice. The tenant must not have objected nor complained.
- You issue a new tenancy agreement - Although your intention may have only been to increase the rent, you may find as a consequence you have to re protect the deposit and should read our section on renewals.
- If the tenant is on Housing Benefit you should price your rent at Maximum local Housing Allowance
If the rent increase is not lawful you could be ordered to repay the money. This is why Section 13 of the Housing Act 1988legislation exists. It means landlords must inform a tenant of their right to appeal against such an increase [this text by law MUST be included in the notice]. Another major implication of an invalid rent increase is that at a later date it could have an adverse affect on a claim for possession. The landlord could have relied on a claim for rent arrears which had been inflated as the monies were never lawfully due. This would mean the Section 8 Notice was invalid.
How Section 13s work Print Form
When a landlord has served notice on a tenant under Section 13 of the Housing Act 1988 which proposes a new rent increase and the tenant reserves the right to apply to the Rent Assessment Committee to decide upon what it considers the market rent should be. Any increase in the rent will then take effect from the date in the landlord's notice.
A tenant who believes that an increase in the rent would cause them undue hardship can attempt to persuade the Committee to rule that this is so and arrange a later date for its decision.
A landlord and tenant will then be bound to this reduced amount for the next 12 months.
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