RENT REVIEWS
Typically, a rent review will take place once per year. For our fully managed properties, we quite often discuss rent reviews during the property inspection. For our rent collection landlords, we would normally contact you on an annual basis by email or phone to discuss a rent review.
When considering rent reviews, we will always look at the rental market at the time. We compare the rent of a property to the rents currently being achieved for similar properties. We then discuss this with the landlord and tenant.
Rents can be increased by granting a new Assured Shorthold Tenancy to the tenants, with the new rental amount listed, or, if the tenant is on a Statutory Periodic Tenancy, then the rent is increased by the service of a Section 13 Notice.
Rent reviews are always discussed before they are implemented.
If a tenant disagrees with a rent review, then the landlord will consider the reasons, the landlords then have two options:
The landlord may decide to renegotiate, they may decide they have not considered the local market correctly and may be looking to increase the rent too much in comparison to neighbouring properties, so the landlord may review the amount he wishes to increase the tenancy by.
Or
The landlord may decide that the rent review is fair, and if the tenant will not pay the market rent for the property that the tenancy will need to end. In this instance the landlord will need to serve the tenant with the appropriate notice to bring the tenancy to an end.
If a tenant feels that the rent being asked is too high, they can formally challenge this by taking their plea to the First-Tier Tribunal (property chamber). There is a set process and time scale to start this process, it must be before the new rent amount is due to start, or if this is a new tenancy, within 6 months of the tenancy start date.
In reality, it is incredibly rare for tenants to take their grievance to the First-Tier tribunal. The tribunal will look at the same evidence that the landlord has access to, i.e. local comparable rents. If the rent increase is deemed to be in line with the local property market, they will not rule in favour of the tenant.
Debbie Jones Cert CIH, FARLA 12th January 2024
