Section 13 Notice
When can a landlord increase rent? How do you increase the rent?
You should check your Tenancy Agreement, because there may be a rent increase clause in there which would have been agreed and signed at the start of the tenancy. The procedure in the agreement should be followed.
If the tenancy agreement makes no provisions for the landlord to make rent increases, then the landlord has two options to increase rent:
- Renew the tenancy agreement at the end of the fixed term but at an increased rent.
- Landlord and tenant can mutually agree on the rent increase, which should be agreed on paper, so there is evidence. Write down the agreed rate, and both tenant and landlord should sign the document for the record. This is often referred to as a Rent Increase Agreement.
Note, the rent cannot be increased during the first fixed term stipulated in the tenancy agreement.
If the tenant disputes the increase, then the landlord can serve a Section 13(2) Notice of the Housing Act 1988 (generally refered to as a section 13 notice), proposing an increase in rent, at the end of the fixed term.
What is a Section 13 Notice
The simplest way to make a rent increase is to make a Rent Increase Agreement or by renewing the tenancy agreement. However, failing this, serving a Section 13 Rent Increase Notice would be the next step
Section 13 Notice
The Housing Act 1988 provides for a Section 13 Notice to be issued by the Landlord to the Tenant in order to increase the rent after the initial fixed period has expired, and the tenancy is in the statutory periodic tenancy.
This route is not available in those cases where the Tenancy Agreement already provides stipulated terms for rent increases.
The Section 13 Notice must provide the following details:
- Details of the Landlord and/or his Agent
- Details of the Tenant
- Details of the Property
- The amount of the increased rent and any other increased charges
- The proposed commencement date
The landlord must serve the section 13 to the tenant, giving the Tenant at least 1 months’ notice where the rent is paid on a weekly or a monthly basis. For a yearly tenancy, a period of six months’ notice is required before the increase can be put into effect.