Easy rent review without S13 – approved by Citizens Advice?

Assuming you are legally correct, you face a disadvantage in that you are committed to the tenancy for three years and cannot issue a possession notice within that period. I appreciate you are looking for long term income (who isnt?), but with a new tenant you have unknowns regarding anti social behaviour and rent payment reliability. Other legislative hurdles, unknown today may change your view on the investment. Most people want the ability to liquidate their investments at reasonable notice to accommodate unexpected personal life changes. Apart from anything else you will be reducing your pool of willing tenants with this arrangement. The one certainty in life is change. If the tenant loses their income stream, no contract is going to magic the rent into your bank account. I doubt a rent guarantee insurer will cover your contract and if so, it would be limited to 9 months of rent normally. Best to go with the normal. Tribunal judges are far more familiar with normal.

1. Rent Reform Bill will outlaw rent increase clauses other than by Section 13.

2. You are restricting yourself by granting a tenancy of three years. With the anticipated loss of Section 21 you will not be able to get your property back.

3. Stick with a 6 or 12 month tenancies with just below Section 13 market rent increases. In 22 years never had a tenant take me to rent tribunal.

Whatever route you decide do consider the proposed changes within the Renters Reform Bill. Whatever government we have in the near future changes on the issues you raise in your questions seems inevitable, some more extreme than others. Including negating contractual provisions.

why complicate this? Due diligence, offer a 6 month min AST and just conduct a rent review annually and issue S13 if you decide to increase the rent.

Please don't do this

If the tenant stops paying you can't get them out (S8 is easily circumvented)

6 months AST always

What ever you decide to do it will be outlawed by the Renters Reform Bill. Rishi Sunak has promised to get this bill through before the election. Every Landlord hopes it will be adjusted or even abandon but its best to take a look to see what you may be in for.

Over complicating the situation set the rent at full market value and offer a 12 month ast with clause to increase rent to a percentage set in it.if tenant not happy they don't rent the property simple.

Of inflation rockets to 100%, you’d be in dire straits.

I’d offer rent fixed for one year and rising by RPI (rather than CPI) in years 2 and 3 but only if the tenant requested it. Otherwise, I’d say rent will be reviewed annually with 3 months’ notice.

I have offered 3 years in the past. Nowadays, I’m more inclined to restrict it to one year.

I have increased rents by around 15% this year and expect to do something similar next year. Having provided some of the lowest rents for 20%+ years, the party is over (for my tenants). I’d like to sell up but I won’t evict them or sell to another landlord.

So rent to increase 5% 10% 15%
Are you confident the tenants wage will increase inline with this?
Consider their other outgoings, council tax, utilities.

What if market rents go down and you find that your 10% & 15% are now completely unachievable

You may well believed you have found the perfect loophole
But ask yourself “why are LLs not already doing this?”

You say you will have a break clause giving 3months notice - well s21 only has a 6month shelf life which again limits you on timeline of going to court

The renters reform bill is unlikely to honour your long term contractual clauses as it is expected that all existing ASTs will automatically become the new periodic assured 12 months after the Bill is enacted

I’d avoid trying the cheat the system and reduce your risk by working with they systems and processes and understanding the new laws that are fast approaching

This sounds like madness to me. Locking yourself into 3 years unnecessarily.