As a landlord you may find that you need to increase the rent on an existing tenancy. If you let a property under an Assured Shorthold tenancy agreement you can propose a new rent but need to follow some basic rules.
When can I propose a new rent?
If you have to put up the rent it is best to talk to your tenant first. If the tenant cannot afford the new rent you might find that they leave, or stop paying the rent, neither of which is a desirable outcome.
How can I propose a new rent?
You can propose a new rent by:
• Agreeing a new rent with your tenant and issuing a new tenancy agreement
• Agreeing a new rent with your tenants and giving notice in writing
• Serving a ‘Landlords notice to propose a new rent’ notice
What if my tenant disagrees with the proposal?
If you cannot agree a rent increase with your tenant you will need to complete a ‘Landlords notice to propose a new rent’ and give it to your tenant.
You can find the form at Gov.uk/guidance/assured-tenancy-forms
Your tenant can either begin to pay the rent at the increased rate after the notice period or make an appeal if they think the rent increase is unreasonable.
What if my tenant makes an appeal against the notice of rent increase?
If your tenant feels the rent increase is unreasonable, they can make an appeal to the First Tier Tribunal (FTT).
They will need to complete the appeal form and send it to the local FTT. In most cases there will not be a hearing unless either party requests one.
The tribunal is independent of government and will listen to both sides of the argument before making a decision. The decision of the tribunal is binding and both parties must adhere to the decision.
What if my tenant stops paying their rent?
The tenant should continue to pay the original rent while any appeal is being considered.
If your tenant stops paying the rent you should write to them and remind them of their obligations, it might be worth sign posting your tenant to where they can get help if they don’t understand their tenancy agreement or are struggling to pay their rent.
What help can my tenant get to help them pay the rent?
If your tenant tells you that they are struggling to pay the rent, you should seek advice.
There is lots of help for tenants who are struggling with money and debt and the Private Rented Service offers landlord support to manage problems in a tenancy such as rent arrears.
For more information about us and useful information about private renting please visit our website or contact us at privaterentedservice@newcastle.gov.uk