Tenants refusing to accept rent increase!

Get rid of them.

My son advertised a room to let one night, had 45 requests to view when he woke up in the morning! Depending on where your property is located, getting a tenant at market rent shouldn't be an issue.

Reply to the comment left by Luke P at 09/08/2023 - 10:25
,"a s.13 would allow them to challenge…and likely win against the rent increase"
The tenant would only win if the proposed increase took the rent above the market rate for the property and it is always possible that the tenant would lose out because the rent could be assessed at a higher level than the landlord is proposing. Few tenants are likely to run the risk. Either way, the landlord ends up with the rent being set at the correct level.

I have found S13 to be the ideal way of dealing with any tenant who is not amenable to a discussion about rent increases because it formalises the process and the tenant has a limited time in which to start a challenge in the FTT.

Assuming you are increasing to market value rent and not trying for an unreasonable amount, in your situation I would issue a Section 21 and expect to have to drag it all the way to court unfortunately. BUT at least you still have that option. My view, use S21 while you still can to do your best to ensure you have as good a tenant as possible. Soon, it likely won't be an option.

At the point the tenant revealed that they think they can do what they like the social contract would be broken for me.

Also, I've learned from Shelter that apparently I, as a landlord, give notice to tenants to force a higher rent. Since I'm going to be punished for that anyway I might as well take up their advice and do exactly that while I still can...

Reply to the comment left by Seething Landlord at 09/08/2023 - 11:50
"...correct level"...listen to yourself - you've drunk the Cool Aid!

If, as I am, very proactive with these matters, you are the first to 'jump' and increase your rents in a particular area/street, then you will look above the 'market' rate...because they'll just use comparables. You've too much faith in the (supposed) experts. Nobody, but nobody, knows better what my property is worth than me and what I can actually achieve.

Reply to the comment left by Luke P at 09/08/2023 - 11:13
You may think so now, but it’s much more hassle to try and evict and find yourself subject to a counterclaim for disrepair and not get your property back for 8 months plus, meanwhile they’ve stopped paying rent. An ounce of prevention is worth a pound of cure. I take a lot of effort over preempting potential issues and I find everything from there goes smoothly and if trouble occurs you are acting from a position of strength. Shortcuts aren’t always shorter in the long term.

Reply to the comment left by Kate Mellor at 09/08/2023 - 12:44
Thats not helpful

Serve section 13 one months notice (don’t need 2)

Start charging from that date and if they refuse the first months rent I speak to them first and if they refuse I then start a small claims procedure… if they fail to pay you after this then section 21… then process small claims and give them a CCJ then their credit rating is effected.

The process for them to not accept the rent increase is clearly on the section 13 form so that’s the process they should be following.

Make sure you ALWAYS serve a section 13 or you can’t charge more rent.

Reply to the comment left by Dino Saw at 09/08/2023 - 13:47
You can increase rent by agreement. If they don't agree (even if you use s.13), that's demonstrable of their attitude. Get rid whilst you still can.

Reply to the comment left by Luke P at 09/08/2023 - 12:35
I have never had an increase challenged in the FTT but have read some of the detailed "judgements" that they issue giving the rationale for their findings and was impressed by the level of detail that they provide to show how they arrived at the "market rent" for the individual property concerned.

If you do not trust their judgement, good luck; you are going to need it once the provisions in the Renters (Reform) Bill are in force.

Our view of rent reviews tends to err on the side of neging pragmatic, although far less so in the last couple of years.

By and large our tenants are pretty good so we don't rush to lose them. We tend to negotiate rent reviews by agreement. Occasionally a tenant says they cannot afford the review and we tend to know iof they are telling the truth. We then reconsider.

I always reckon that losing a tenant costs trhee months' rent - covierng a void, letting fees and works (there's always something to do). If the rent is £1,000 pcm that's a costs of £3,000. If you're looking a rent increase of £100 pcm, it will take three years to recover if you have to change tenant, plus there's a risk for having a new tenant.

I obviously don't disagree with rent reviews as landlords are not charities and rents need to be commercial, but there are tactics for running a business.