Rent increase for tenant in situ?

Rent increase for tenant in situ?

0:07 AM, 5th December 2024, About a month ago 13

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Hi, I’m about to complete on a property that comes with a tenant-in-situ who has a periodic tenancy with the existing owner.

His current rent is significantly under market rate and as part of my offer on the property, the current tenant agreed for the rent to be immediately increased to market rate.

Am I able to simply apply the new rental amount within the new tenancy agreement or do I need to issue a Section 13 rent increase and provide 2 months’ notice?

Thanks,

Russ


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Monty Bodkin

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8:29 AM, 5th December 2024, About a month ago

If you need to ask this then you shouldn't be buying a property with a tenant in situ.

Anita Dowman

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9:48 AM, 5th December 2024, About a month ago

Draw up the new tenancy and get the tenant to sign it. If they have agreed I don’t see what the issue is.

John Grefe

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10:24 AM, 5th December 2024, About a month ago

Reply to the comment left by Monty Bodkin at 05/12/2024 - 08:29
I'm surprised that your mortgage provider allows this. But you haven't said you buying with cash!

homemaker

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10:34 AM, 5th December 2024, About a month ago

Your tenant has the protection of his/her existing tenancy agreement so it depends on the terms of this. However, when I bought a tenanted property previously I did as suggested issue a new contract.

Stuart Rothwell

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12:06 PM, 5th December 2024, About a month ago

Reply to the comment left by Monty Bodkin at 05/12/2024 - 08:29
Not exactly helpful

Stuart Rothwell

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12:07 PM, 5th December 2024, About a month ago

Reply to the comment left by at 05/12/2024 - 10:34
I did the same and simply issued a new contract which the tenant signed, after all they have agreed to the new rent anyway

Dylan Morris

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12:40 PM, 5th December 2024, About a month ago

And remember as it’s a new AST you will need to issue the latest How To Rent booklet.

Cider Drinker

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14:00 PM, 5th December 2024, About a month ago

The tenant would be best advised to not sign a new AST. If you can fool them into doing so, well done.

If they choose not to sign a new AST, issue a Section 13 rent increase (after you’ve notified them if their new landlord - Section 3 Notice).

DPT

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16:56 PM, 5th December 2024, About a month ago

How much due diligence have you done on this tenancy/tenant?

A S

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18:39 PM, 5th December 2024, About a month ago

If they agree then don't see no problem but if not then you'll need to take the necessary steps

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