Rent increase ruling by First Tier Property Tribunal?

Rent increase ruling by First Tier Property Tribunal?

9:47 AM, 22nd January 2024, About 10 months ago 9

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Hello, After a very long 7 months of trying to increase the rent on my property, which involved paper submissions, an inspection and a subsequent hearing, the First Tier Property Tribunal returned a decision agreeing to an increase in rent for my tenants.

The increase has been backdated which means the tenants now owe me the arrears. They will also need to amend their standing order going forward. There is no guidance about timescales. Do I just write to the tenants and request that they pay the arrears within the next 30 days?

I see they can appeal the decision if they believe there has been a mistake in the law. There have been no errors but I suspect the tenants will try and stall any increase by appealing the decision.

If this is the case, is the rent increase on hold? I cannot find any information regarding the rules around this.

If anyone has experience on the process, I’d appreciate your advice.

Many thanks,

Aislinn


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Michael Booth

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12:11 PM, 22nd January 2024, About 10 months ago

Section 21 while you still can.

Freda Blogs

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12:38 PM, 22nd January 2024, About 10 months ago

Likely the FTT would reject any tenant appeal - as in not entertain it - if not on a point of law. They have better things to do than relitigate cases, so your tenants would be unsuccessful.

Paddy O'Dawes

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13:24 PM, 22nd January 2024, About 10 months ago

Unless someone can correct me the effective date would be from the date of the FTT ruling. Therefore arrears and increases would be due from that date including any backdating. It would be down to yourself to agree a payment plan with the tenants or demand arrears in full. Regardless of any appeal it would still need to be paid but in the unlikely event of it being overturned it would then have to be redistributed to the tenant. Does the arrears come close to s8 grounds as yet? If you have had this much grief over an increase I suspect anything else may be fraught

Reluctant Landlord

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13:25 PM, 22nd January 2024, About 10 months ago

issue a 30 day payment notice for rent arrears owing (due to the rent increase not being paid) from the date that the FTT decision was made AND consider adding 3% for late payment too. Wont hurt to state that you will be considering possession if this is not paid and that any appeal with the FTT themselves will not override the decision made. Tell them to update their SO/DD accordingly to £XXX from X point onwards.

Remind them of the FTT findings citing this is a fair increase and if they do not want to pay they are free to give their months notice at any time.

Assuming they are still paying the existing rent? If no payment after the 30 days expire, consider a S21 & S8 (citing rent arrears).

If the rent increase is fair you will get someone else in no problem and you may be able to raise it a little more if the rent is not currently at market rate itself.

Aislinn

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14:21 PM, 22nd January 2024, About 10 months ago

Thank you for your comments, they are very helpful and have put my mind at ease somewhat.

The back story is that these tenants have been causing problems for the last year.

They have been in the property since 2010 and we have always had a good relationship.

We visited them a year ago and told them that we were planning to sell the property for financial reasons. They were understanding and allowed viewings etc. We had an offer from a landlord, which we accepted as we knew the tenants wanted to remain in the property. The buyer offered them a fair market rent to remain, they refused this. At the last minute (prior to exchange of contracts), they informed us they would not leave, and we would have to go through the legal process to get rid of them. It was at this stage (back in May 23) that I served the Section 13 rent increase and a Section 21.

They did not move out, as we had expected, so we began possession proceedings, however, due to an issue with the deposit back at the start of the tenancy (property was owned/managed by my Mother back then and she is since deceased), our solicitor advised us to cancel the court hearing, return the deposit and start again (we do not have a very good solicitor unfortunately).

In between us cancelling the hearing, returning the deposit and issuing another section 21, they reported a number of problems to the council (without reporting the problems to us first). The council attended and found only 1 of the 10 issues as something that required repair (a sinking floorboard). They had come up with an ridiculous list such as the washing machine being too loud, the fridge not cooling properly, noise from neighbours due to poor sound proofing. They even claimed there was asbestos in the building, which the council said there was absolutely no evidence of. The tenants aim here was to invalidate any further section 21 so that it would be classed as a revenge eviction, however, as the property is on the market and still sold STC, this rule doesn't apply.

The new section 21 requires the tenants to vacate by 1st March, which I doubt they will do, so we will have to go down the court route again. However, I now believe I have extra leverage as if they do not make up the arrears (currently 4 months as rent has been backdated to 1st October), I can also serve a section 8. I'm waiting for my solicitor to return my calls to discuss this.

The tenants behavior has been despicable. They refused me entry to the property since May last year. They had to allow me entry during the council visit (but wouldn't let my husband in as he is not on the tenancy agreement) they were hostile towards me and even accused me of recording the meeting! They have appointed a solicitor and are coming after me for the legal costs relating to the first section 21, which my solicitor is advising I pay.

I makes me so angry when Landlords get such a back reputation. These tenants have caused me nothing buy stress and a lot money over the last year.

Hopefully the rent increase will make then rethink their position and they may decide to do the right thing and leave, but based on past behaviour, it seems unlikely.

Reluctant Landlord

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16:21 PM, 22nd January 2024, About 10 months ago

issue the S21 and S8 listing all the beaches of the TA as you have listed as above ASAP and go for it.

Think about boycotting the solicitor and using a LL defence type person instead? They can also advise on their 'costs' they are seeking from previous S21 (sounds like bull to me!) Do you have any legal cover as part of your building insurance?

Check your gas and other docs needed for S21 are up to date and How to rent guide have been issued. If they have denied you access since last May, is your gas cert still currently valid as no S21 if it isnt, only S8 available to you.

Aislinn

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16:30 PM, 22nd January 2024, About 10 months ago

Reply to the comment left by Reluctant Landlord at 22/01/2024 - 16:21
My solicitor is supposed to be a Landlord and tenant specialist, but I think she is young and inexperienced. I started the process with a different solicitor but they left.
Al documents are up to date (next gas cert due in March). The tenants were sent all the documents (gas certs, EPC, deposit protection and prescribed info, how to rent guide etc) by the solicitor earlier in the year, prior to the section 21. The Section 21 was issued in December.
I'll check the insurance policy re: legals.
Thanks

David Houghton

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20:33 PM, 22nd January 2024, About 10 months ago

Reply to the comment left by Aislinn at 22/01/2024 - 14:21
On the legal Costs you owe. Offset the rent ,(including back rent) they owe you. Put it in writing. Get rid of them use s21 if everything is in place don't bother with S8.

As to the revenue eviction, did the council serve you with formal notice? Check this but if they didn't I don't think the revenge thing applies.

Seething Landlord

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10:42 AM, 27th January 2024, About 10 months ago

Reply to the comment left by Paddy O'Dawes at 22/01/2024 - 13:24
The effective date of the rent increase is the date stated in the S13 notice, not the date of the FTT decision.

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