Section 13 Notice advice?

That's right, they can, but the downside to them is that if the independent valuer decides that market rents are higher than the intended rent rise, then that is what they must pay. You therefore don't have any risk associated if the tenant is currently paying below market rates. The worst that can happen is that the valuer decides the correct rent is lower than your intended rent increase and the increase will be less than you plan to make, this will however not be the end of the world as if you have done your homework properly this will not result in a huge difference.

This is from the guidance notes for S13 form 4b

"If you do not accept the proposed new rent, and do not wish to discuss it with your landlord, you can refer this notice to your local rent assessment committee. You must do this before the starting date of the proposed new rent in paragraph 4 of the notice. You should notify your landlord that you are doing so, otherwise he or she may assume that you have agreed to pay the proposed new rent.

To refer this notice to the local rent assessment committee, you must use the form Application referring a notice proposing a new rent under an Assured Periodic Tenancy or Agricultural Occupancy to a Rent Assessment Committee. You can obtain this from a rent assessment panel, housing advice centre or legal stationer (details can be found in the telephone directory).

The rent assessment committee will consider your application and decide what the maximum rent for your home should be. In setting a rent, the committee must decide what rent the landlord could reasonably expect for the property if it were let on the open market under a new tenancy on the same terms. The committee may therefore set a rent that is higher, lower or the same as the proposed new rent."

Don't bother with s.13 and the (potential) hassles.

Do it by mutual agreement, writing a letter about the increase from a date in the future. If they disagree (which I've only had 1 over literally hundreds of properties over the last 5 or six years when I started making it an annual event), issue s.21...

Once the committee has determined the new rent, I believe the tenant must pay the extra retrospectively from the increase date and in the meantime must continue paying the rent at the old rate, but you should confirm that for yourself.

You should include the terms for rent increases in all your tenancies going forward to avoid having to serve a S13 for every rent increase. The form is a nonsense really, but the notes do set out the tenants rights.

It's very difficult once you are forced to increase the rent by so much as there is a lot of natural resentment and usually it results in a barrage of improvements requested which are harder to do in an occupied property, working around tenant's belongings and work schedules.

I just found this on the Shelter website, which is referring to when the rent has been assessed...

"The new rent applies from the date specified in the landlord's notice of the increase. The Tribunal can decide that the new rent applies from a later date, up to the date of the determination, if this would otherwise cause the tenant undue hardship."

Reply to the comment left by Luke P at 09/02/2023 - 12:17Do it formally or run the possible risk of problems when wanting to end the tenancy/tenancies.
You could increase the amount you feel is reasonable by 50% this year and 50% next year then whatever % you feel applicable every year after.
If they go to the rent assessment committee and it finds your rent increase reasonable but still don't want to pay it then the tenants have the option of staying or leaving.

If they leave then increase the rent by the amount you wanted to and remarket.

IMO the rent should not have been left for 6 years without a review/increase. I have been renting property since 1995 and the longest i have left an increase is 2 years. I now tend to increase rents at yearly intervals. Smaller increases are easier to accept by tenants rather than a big hit. At the moment I am only increasing rents at around 3% because tenants are struggling with increasing energy and food prices. At least their rent increase will be well below the current rate of inflation. ( I should mention that I have no mortgages)

Reply to the comment left by Dennis Forrest at 09/02/2023 - 14:28
Many did leave it, though. We never used to do them during tenancies and rarely moved them much during vacant periods. We were happy until s.24 came along (and other things) and now it's an annual event.

Did have one tenant who was with me for about 11 years. Unfortunately he died of cancer about 6 months ago. Got the tenant originally through a big name Estate Agency and they were greedy and wanted annual renewal fees from me and from my tenant. We both decided to leave them, Their renewal terms were not legally water tight. They threatened to sue and I said go ahead if you feel confident you will win. They backed down. I asked them to give the deposit direct back to the tenant which they did. Why do I need a deposit for an unfurnished flat with a good payer? Because I wasn't paying any agents fees i was able to keep the rent about £200 under market rates. He was paying £1200 per month just before he died. After redecoration and new hob and cooker it has been let through an agent at £1400 per month. The agent is charging me 10%+vat for full management so I am ending up with just over £1200 per month.

Sudden increase is always a problem. You could agree for slow increase with tenant. For example let them pay 1150 now, and 1300 from 6th month. I told them the reality that I won't be eligible for mortgage with reduced rent. Again it is loss for me which lender won't be happy with. As far as slow rent increase has been agreed upfront, it is allowed. It won't be considered as increasing rent every 6 months as it has been agreed upfront.