Did you know that tenants can dispute the rent either at the start after they move in or when you propose an increase?

Did you know that tenants can dispute the rent either at the start after they move in or when you propose an increase?

We all know that rent increases are important for a landlord to cover increases in expenses for a variety of reasons such as property taxes, mortgage payments, maintenance, utility bills if they are included and other operational expenses.

These increases also ensure landlords get a fair return on investment and keep rental properties sustainable over time. If you are a landlord and have concerns, this is the time to look over your agreements and current rent levels.

When the changes to the Righters Rent Act take effect in May, the following rules will become law: 

• Rent increases will only be allowed once per year. 
• Any rent review clauses contained in tenancy agreements will be abolished, and automatic rent increases will be rendered void. 
• All rent increases will only be initiated by the landlord serving a section 13 notice. 
• The amount of notice required for the rent increase will increase to two months’ notice before the new rent takes effect.

Keep in mind that tenants can challenge rent increases through a first-tier tribunal if they think the increase is unfair. This rule has not changed, but we expect more tenants to use this option now due to the exposure on the Righters Rent Bill.

If a tenant challenges a rent increase, the Tribunal follows specific criteria. They look at what would be reasonable for the property in an open and competitive market. This includes comparing similar properties in the area and considering factors like size, condition, location, and features.

The Tribunal can decide on a rent that is lower, or the same as the proposed new amount, so the tenant has nothing to lose in making the claim. It is important to carry out market research and have this on file ready in case of such a claim.

Our team regularly successfully serves section 13 notices on behalf of landlords. We have also advised our clients on the upcoming changes and their likely impact. If you are looking for a property management company in Cambridge, Longstanton, St Neots, Royston, Ware or London, then give our team a call. We manage rooms in HMO properties, houses, and flats to rent, as well as rental properties in unique locations with extensive sizes and high-quality finishes.