Landlord Assist are a multi disciplinary firm dealing with Landlord and Tenant issues, Tenant referencing and tenant eviction. We act for Landlords and Letting Agents throughout the UK.
This mini site deals with the Section 13 Notice which is laid down in the Housing Act 1988 Section 13(2), as amended by the Regulatory Reform (Assured Periodic Tenancies) (Rent Increases) Order 2003 and which is used to amend the amount of rent due however details of all of our services can be found at www.landlordassist.co.uk.
Landlords often forget that once the fixed term of a tenancy has expired they have the option to consider increasing the rent payable under the terms of the tenancy.
In the current economic climate Landlords and Letting Agents should be mindful of keeping the rent at a market level to maximise their return. Given the current shortage of rental property available the marketplace is generally receptive to reasonable increases of rent.
One of the rights you benefit from as a landlord is that of charging a market rent, which implies the right to increase the rent when the conditions are suitable. The term ‘market rent’ refers to the highest amount a landlord can charge, which is decided by evaluating the property as well as comparing the rent to that charged for similar properties in the area.
Sometimes, no additional legal proceedings are necessary for that to happen, for instance if that option is specified in the tenancy agreement or if the tenant verbally agrees to a rent increase.
If suitable clauses exist within the tenancy agreement then these should be considered as they may obviate the need or impact of a section 13 notice. We would be happy to review your tenancy without cost and without obligation and to advise you on the best way forward.
If you consider a rent increase mandatory and cannot reach an agreement with the tenant on the matter, you have the option of serving them a Section 13 notice.
This is a fairly simple notification stating the rent increase as well as the exact date when it will start taking effect. You must issue a Section 13 notice in order to guarantee that the tenant is legally required to pay the rent increase.
Landlords and Letting Agents should be aware that a minimum period of notice must be given before the proposed new rent can take effect. That period is:
• one month for a tenancy which is monthly or for a lesser period, for instance weekly or fortnightly ;
• six months for a yearly tenancy;
• in all other cases, a period equal to the length of the period of the tenancy - for example, three months in the case of a quarterly tenancy.
Another requirement which applies in all cases, is that the proposed new rent must start at the beginning of a period of the tenancy. For instance, if the tenancy is monthly, and started on the 20th of the month, rent will be payable on that day of the month, and a new rent must begin then, not on any other day of the month. If the tenancy is weekly, and started, for instance, on a Monday, the new rent must begin on a Monday.
If you fail to prepare and serve the notice correctly and later address the court to recover rent arrears or evict the tenant based on that, you might not succeed. In the absence of a Section 13 notice, the tenant is not compelled to accept the rent increase.
In the event that the tenant decides to contest the notice they have the option of addressing the Rent Assessment Committee. That will result in the property being assessed and compared to other properties in the vicinity in terms of rent.
A date for a hearing will then be set and both parties will be notified, being able to represent themselves or be assisted by their legal representatives.
The only condition imposed for applying for a hearing is sending the application soon enough for it to be received before the rent increase takes effect, as stated by the Section 13 notice.
Landlord Assist can arranging for the drafting preparation and service of Section 13 Notices for only £50 plus VAT.
Landlords are able to undertake the notice themselves should they so wish, however we would suggest that unless they are familiar with the legislation that they should engage a firm such as ourselves to undertake the task for them.
Contact us on 08707 662288 or via email firstname.lastname@example.org