Are you aware of how to legally increase your tenant’s rent?
This module offers landlords guidance on legally increasing their tenant's rent
If you want to increase your tenant’s rent, there are certain processes you have to adhere to.
For a fixed-term tenancy, you can only raise the rent if the tenancy agreement permits it, otherwise you will have to wait until the fixed term expires.
You can then either issue a new tenancy or renewal form with an increased rent or allow the tenancy to become periodic – then you can only increase the rent once a year.
There are two ways to legally increase the rent during a periodic tenancy.
You can simply agree the new amount with your tenant and produce a written record that’s signed by both parties.
But the more formal and more common way is to issue a Section 13 notice under Housing Act 1988 (using the government’s Form 4), giving your tenant at least one month’s notice of the increase.
Importantly, the notice must expire on the next day the rent is due, e.g. if your tenant pays on the first of each month and you want to increase the rent as of 1 September, the notice must be issued on or before 1 August.
If your tenant thinks the increase is excessive, they can take the matter to the First Tier Tribunal, but if they don’t do that before the notice expires, the increase comes into effect automatically.
In Scotland, under a private residential tenancy, the landlord can only increase the rent once a year and must give at least three months’ notice.
Note: The three per cent rent cap in Scotland ended on 31 March 2024. There is a new rent increase procedure which now applies for rent increase notices issued from 1 April 2024 onwards. The landlord can propose an increase of any amount and if the tenant wishes to challenge the increase, they can refer it to the rent officer, who must apply a tapering formula to the increase. Any rent increase notices issued on or before 31 March 2024 are still capped at three per cent.
Our article on how much rent to charge contains more useful information.
If you’re having trouble with a tenant, we’d suggest that mediation should be your first port of call and going down the legal eviction route should always be a last resort.
However, if your tenant’s behaviour has become unacceptable - for example it’s causing a nuisance to neighbours, they have fallen into serious rent arrears, or you want or need to get your property back for another reason - you may have no option but to evict them.
It’s important to know that if any part of the eviction is handled incorrectly – for instance, if the wrong notice was given or a judge decides the reason for the eviction isn’t valid - the case can be dismissed, and you’ll have to start the whole process again from scratch.
Meanwhile, your tenants can stay in the property, and you may find that you are ordered to pay your tenants ‘wasted costs’ of your failed possession claim.
Evictions can be stressful and costly so, if you do need to take your property back, we’d recommend that you seek professional help, such as from our own specialists, Landlord Action.
Meanwhile, here’s an overview of what you need to do to evict your tenant legally:
If the tenant hasn’t breached their tenancy agreement, you can still take your property back by issuing a Section 21 notice, but you can’t evict them within the first six months or during an initial fixed term.
You must give them at least two months’ notice.
It’s important to be aware that in order to serve a valid section 21 notice, you must have complied with various regulations – including those regarding deposits, tenant fees, energy performance certificates and HMO licensing. If you’re not sure whether you are compliant, you should seek legal advice before serving the notice.
To issue a Section 21 notice, use Form 6A from the government website.
Note: Under proposals in the Renters (Reform) Bill, Section 21 is to be scrapped.
Although the Bill is still making its way through Parliament (as at February 2024) and may not be passed before this year’s General Election, all the main parties have stated that they are committed to abolishing so-called ‘no-fault evictions’.
You can read more in our article, ‘Renters (Reform) Bill: should landlords be concerned’.
If your tenant has breached any of the terms in their rental contract, you have the right to evict them – even if it’s within the first six months of the tenancy or a fixed-term agreement. You can do this by serving a Section 8 notice, stating the ground(s) on which you’re evicting them.
The amount of notice you have to give depends on the ground, but in the most common cases – serious rent arrears, breach of the tenancy agreement and damage to the property – it’s two weeks. If they’ve caused serious nuisance or committed a criminal act, you may be able to evict them immediately, without notice.
Be aware that some possession grounds are mandatory and some are discretionary. Where possible, you should use a mandatory ground because evictions on discretionary grounds can result in tenants filing defences, meaning the case takes longer and costs more.
To issue a Section 8 notice, use Form 3 from the government website.
If the tenant refuses to leave by the date stated on the notice, you’ll then have to move to the court process.
If you’ve used a Section 21 and you’re not claiming rent arrears, you can apply for an ‘accelerated possession order’. This usually doesn’t involve a court hearing, so it can be quicker than applying for a standard possession order.
However, because the case is decided based on paperwork, you will need to have all the necessary documentation available – such as a signed tenancy agreement.
If the tenant still doesn’t leave even after a possession order has been issued – and that’s very rare – you’ll have to ask the court for a ‘warrant for possession’, which gives the tenant a final date to leave the property. If they don’t, that’s when a bailiff will be instructed to forcibly evict them.
For more information, visit Landlord Action’s website – or you can request a callback from the advice team, who will be happy to have an initial chat free of charge.
The eviction process is different in Northern Ireland. .
Watch this video with Paul Shamplina, to find out more about the eviction process and what to do if you are affected by rent arrears.
You can also read our article on what to do if your tenant can’t pay the rent and falls into arrears.
