Q. My tenants fixed term has ended and they are not willing to sign a new fixed term tenancy agreement at a higher rent as they say they can’t afford it. How can I increase the rent?
A. As no new fixed-term agreement was signed, your tenants will now have a rolling periodic tenancy, which will probably run from month to month. Assuming the tenancy is an assured shorthold one, you will be able to increase the rent via the notice procedure set out in section 13 of the Housing Act 1988.
To do this you will need to complete the proper form. This is a prescribed form and can be found on the government website. Do a search for ‘gov.uk assured tenancy forms’ – it is form 4.
The form is not the easiest form to complete but there are some notes available with it which will help. You will need to set out the new rent you propose to charge and the date (which must not be less than one month from the date of service of the notice) when it will come into effect.
Tenants can apply to the First Tier Tribunal for the proposed rent to be reviewed, but it will only be reduced if the tribunal find that the rent is higher than the market rent for the property. If they find that the market rent is higher, the rent may even be increased!
So as long as your proposed rent is slightly lower than the market rent, it should be safe. If the tenants don’t challenge it, the new rent will come into effect on the date set out in the notice. If it is challenged, the tribunal will set the date for the new rent to come into force.
Note that you can only increase rent via the notice procedure once every 12 months.
Q. My tenants have moved out, leaving their property in a disgusting state. Can I claim for cleaning costs from their deposit?