Section 13 of the Housing Act (1988) has long been the go-to method for landlords looking to increase rents in the private rented sector. However, with the impending Renters (Reform) Bill on the horizon, changes are afoot. Here’s a concise guide for landlords and agents on how to navigate rent increases, including insights on how DepositPass can streamline the process.
Current Process:
Landlords currently have several avenues for increasing rents:
- Rent Review Clause: Including a rent review clause in an Assured Shorthold Tenancy outlines the terms for rent increases.
- End of Fixed-Term Tenancy: Rents can be increased in a new fixed-term contract after the end of the existing fixed term.
- Mutual Agreement: Landlord and tenant can mutually agree to a rent increase during the tenancy, with a written record of the agreement.
- Section 13 Notice: For periodic tenancies, landlords use a Section 13 notice to propose a new rent, providing at least one month’s notice.
Key Considerations:
- Rent increases must be fair and realistic, aligned with local market rates.
- Section 13 notice can’t be used in the first year of a periodic tenancy or if there’s an existing rent review clause.
- Disputes over rent increases can be addressed through the First-tier Property Tribunal.
Future Changes:
Under the Renters (Reform) Bill:
- All tenancies will transition to periodic, simplifying the process for rent increases.
- Notice period for rent increases will double to two months.
- Landlords will only be able to increase rents once a year using the new process.
- A simple form provided by the government will facilitate rent increase notifications.
- DepositPass offers a streamlined solution for managing rent increase notices and payments, ensuring a smooth process for both landlords and tenants.
Navigating rent increases in the private rented sector requires an understanding of existing regulations and forthcoming changes. As landlords prepare for the transition under the Renters (Reform) Bill, leveraging tools like DepositPass can streamline the process, providing convenience and efficiency for all parties involved.
Please note that this article serves as a guide and does not constitute legal advice. For more information, visit gov.uk.
