Section 13 rent increase and the Tribunal?

Section 13 rent increase and the Tribunal?

13:30 PM, 13th February 2023, About 2 years ago 7

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Hello, my tenants are on a periodic tenancy, only because they refuse to sign a new Tenancy Agreement.

Recently I served a section 13 to increase the rent up to the current market value, but the Tenant only offered fifty pounds, which I declined.
Now he has gone to the Tribunal, and this is what they say below:

“The Tribunal has received your application for determination of rent for the above premises. A copy of the application has been sent to the respondent/landlord together with this letter.

“I have referred the application to a Legal Officer and am now writing to inform you that it is the Legal Officer’s preliminary opinion that the Tribunal may not have jurisdiction to consider the matter because:-

“The landlord’s notice proposing a new rent may be defective, as it does not appear to take effect at the commencement of a new period of the tenancy. In practical terms, this means that the proposed new rent may not be payable from the date specified.

“The Tribunal considers that the preliminary jurisdiction issue can be decided on the basis of written representations (paper track). However, either party may ask for a hearing by sending in the attached Reply Form to the Tribunal at London.Rap@justice.gov.uk and the Tribunal’s office and sending a copy to the other side.”

How can you Increase rent on Periodic Tenancy, where the tenant refuses to sign a new tenancy agreement?

Any advice will be appreciated

Maahad


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Pamthomp33

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1:38 AM, 14th February 2023, About 2 years ago

You can't increase rent during the fixed term of the tenancy agreement and once it goes periodic, you need to give at least one month's notice and can only increase once a year. All increases to be issued via Section 13 form. Hope that goes some way to answering your question.

Smartermind

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11:22 AM, 14th February 2023, About 2 years ago

Why are some landlords so naive in thinking that when an AST tenancy reaches the end of the term that the tenancy ends or that the tenants are obliged to sign a new tenancy agreement. A tenant with a tenancy agreement has to do no such thing. It merely rolls over into a periodic tenancy. The tenant would only sign a new agreement if there was some advantage to them not to enable the landlord to increase their rent.

As mentioned by pamthomp33, providing you give proper notice you can increase the rent.

Sunrise

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11:23 AM, 14th February 2023, About 2 years ago

Pamthomp33 -Maahad says that the tenants are on a periodic tenancy now."Hello, my tenants are on a periodic tenancy," Surely the Section 13 should have been accepted?

Maahad- did you ask for the new rent to be paid from a different date to the date the rent is normally paid? "the proposed new rent may not be payable from the date specified." Otherwise I can't see why it wouldn't be accepted.

RoseD

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11:24 AM, 14th February 2023, About 2 years ago

Just ensure you have all the paperwork in order including all the points outlined in section 13 to the tenant as this is split into terms for both tenant and landlord otherwise the application will be dismissed. Also evidence that your increase is in line with local area rents (ie at least 3 similar properties being advertised and let at the increase you proposing). It isn't sufficient to assume a rent increase just because your costs are going up (you are expected to take that hit) it's all about the evidence. Being in a periodic tenancy shouldn't alter the decision as long as you have the original AST documentation. Applying to arbitration just a tactic for delaying the inevitable rental increase but as long as it's fair you should be ok.

Kate Mellor

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11:34 AM, 14th February 2023, About 2 years ago

The 'period' of a periodic tenancy will be determined by the rent payment dates and is usually monthly, with a new period beginning on the date the rent is due each month. This means that your rent increase must be stated to commence on the rent payment date at least one month after the notice was deemed to be delivered. (If your rent is due at any interval other than monthly then your 'periods' will be different.)
Did you date the new rent to commence on the date your tenant's rent is due in accordance with their original tenancy agreement? This might be different from the date each month that they ACTUALLY pay their rent. Check the wording on the agreement if you haven't already.
I presume your tenancy has run on to become a periodic rather than a contractual periodic tenancy seeing as you were trying to renew the tenancy at the end of the original fixed term. Mine are contractual. You are absolutely fine to serve a section 13 rent increase using form 4.
If your original tenancy agreement contained a clause allowing you to make a rent increase, then you shouldn't serve a S13 notice as it's not necessary.

Pamthomp33

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11:38 AM, 14th February 2023, About 2 years ago

Reply to the comment left by Sunrise at 14/02/2023 - 11:23
Yes I appreciate that but I wanted to include text around fixed term tenancy contracts as the article mentions this as a possibility. It's also a useful thing to understand anyway for future reference.

Seething Landlord

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16:50 PM, 14th February 2023, About 2 years ago

As others have said, the objection to your notice is that it apparently states an incorrect date for the new rent to commence i.e. it has to start on a rent day at least one month after the date of service.

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