UK Landlord Forum / Life

Hi.  I spoke to my tenant in May about the rent being £175 pm below the market rent.  He politely said he was not interested in paying any more rent.  He didn't say why but did say he could be out in 2 weeks if needed (I did remind him politely that 1 month notice required).  He has his own property in London that he rents out. I said I would think about what I was going to do, as I was not sure whether to sell or not due to how I felt recently about being a landlord.

Anyway after 4 months thinking I have decided to increase the rent.  There is no clause in the rent agreement about increases, so I have prepared a Section 13.  can I serve this by email? I am away from home at present and do not have access to a printer.

Thanks for your time.

What, if anything, does your tenancy agreement say about serving notices?

Usually email isn't satisfactory as a means of delivering notices because there's not way of knowing it's been delivered unless the recipient confirms it in some way, and there's no deemed delivery for email.

Hi.
1 The Landlord gives notice to the Tenant that pursuant to Section 48(1) of the Landlord and Tenant Act 1987 that notices (including notices in proceedings) may be served on the Landlord at the address specified at the beginning of this agreement.
12.2 Any notice served upon the Tenant by the Landlord pursuant to this agreement or any statute or regulation then the same may be served properly addressed to the Tenant either at the Premises or by sending the same by either recorded delivery post, or prepaid first class post to the Premises or at the Tenant's last known address and the same shall be deemed to have been properly served and received by the Tenant 24 hours after posting the same

I am going to get someone to post through door today and take photo. I want to use the email as a back up and text to say that notice has been emailed and posted through door.

I want to get it done today before another monthly rent cycle hits.

Thanks

I think you've realised the answer, but, for the avoidance of doubt, the answer is no, you can't use email.

I'd personally send it first class with proof of posting from a post office - even if it means missing a month.

Whoever posts it through the door may be required to supply a signed statement to that effect.

We do not know the current monthly rent. So we cannot asses the increase as a reasonable percentage of a total, or as an increase vs. inflation, or anything like that... all we can see is the number you mention.

£175 x 12 = £1,524. And - just on absolute terms - in a cost of living crisis time - that might appear grasping. Market rates are somewhat subjective. I prefer to let a rent establish itself and then increase in-line (under, actually) with an inflation measure. No-one will want to give out £1,500 for the same thing. My increases in 2022 have been around 10% of that figure... but I increase annually... this is the trap both Landlord and Tenant can fall into when rent is not increased modestly and regularly.

Thank you jpkeates and hippogriff for your advice. 
The current rent is £675 and market rates which are being obtained in the area are £850 for last 6 months and a steady £800 for the 12 month's previously. All this was mentioned to tenant during our meeting in April.

So my £100 increase would be a 14.8% increase.  I appreciate it's a lot, but much better than £175.  He's been a tenant for 5 1/2 years and the first rent increase I gave him was 16 months ago and was a £40 increase. I've learned from hindsight that it would have been better to increase moderately each year. I could give you all the excuses in the world as to why I didn't, but basically didn't want to rock the boat and risk voids even if the chance was slim.  I'm in a much better place financially now. Given that the rent will still be quite a bit below market rate I feel it justified.  The tenant could have suggested an amount but instead said he 'wasn't interested in paying any more rent and could be out in two weeks - just say the word'.
I like the tenant. He's a decent guy but for me to make this work in the current and what appears to be future climate the rent needs to be closer market value.
Thanks again

Some of mine are in the same price range.Even if they are on the low side,I would never impose such a big increase.A tenant who has been reliable for over 5 years is like gold dust,to be cherished.I would make a modest increase of £25,and hope he agrees to it.You can't expect him to suggest an amount that suits him,why would he do that?

Hi and thank you heavykarma.

I didn't expect him to suggest an amount as such but I didn't expect him to say 'I'm not interested in paying any more - I can be out in 2 weeks'. I was hoping for more of a discussion as I had asked to meet him for a discussion on the monthly rent. I feel that he's made it clear that he doesn't  want to pay anymore rent. I think after a few months considering the situation I need to be clear that I expect more rent for the property. I appreciate it seems steep, but he is well aware of the going rates in our area and that I've been very considerate changing significantly below market rent for the majority of the tenancy.

Really appreciate everyone's advice.

Then I would write assumptively imposing a rent increase... and providing an concluding instruction of "please can you confirm you have updated your Standing Order to the new rent [£amount] for September's payment ongoing"... or something like that.

The reason why I say concluding instruction... is the email or letter you send could easily appear much more reasonable... in a "we're all in it together" kind of way... you can explain that you understand there is a cost of living crisis... and you have done your best to not increase the rent... but your own costs are increasing... and you've not imposed a rent increase since whenever... and pro-rated on a yearly basis that would come out at a modest increase (example - you could easily claim a 15% increase in 2022, but no increases in 2021 or 2020 comes out at a 5% annual increase (not exactly how maths works, but you get the idea) - and then state this is easily better than current Inflation, so you have done what you can).

If the Tenant ignores or rejects that instruction, then you can proceed either to Section 13 or eviction.

However, £100 is still £1,200 a year and even if the rent achieved is below market rates... well, that was your open-eyed choice, and the current predicament is therefore your doing. No Tenant ever proactively comes to their Landlord saying... "hmm, I've thought about this and I think my rent might be too low". Currently your bluff is being called.

£675 to £775 is a huge jump. And maybe the Tenant heard you say £675 going to £850... but that was back in May. Enough time has passed for you to think about it. Maybe now is the time to impose something much more reasonable... more formally, but not Section 13 yet... and see if the views of the Tenant are still as immovable. I am on the cusp of suggesting £50 per month (based on nothing except it's still £600 extra for you).

We call that compromise - where no-one gets what they want. If they decide to leave in two weeks... well, you will have gambled and lost I'd suggest... as Tenant changeover requires effort, time and money.

Thank you Hippogriff for your reply.

Just to give an update....
I decided yesterday (before recent Hippogriff reply) to send the section 13 by email with covering explanation and a copy hand delivered as I'm away at present. I texted to say that I'd emailed re rent increase. The covering letter to email reiterated the pleasant discussion we had some months earlier regarding increased costs and that no mutual amount was agreed etc.  I received a polite email back saying he fully understood and will pay extra £100 from next month. He seems happy, but how long will he stay for, I don't know. He's been on a rolling periodic for some time, which suits us both.

What have I learned from this? Lots! Better to increase the rent annually in small increments. If I'm going to try for mutual consent, have a strategy a, b and c. When I've gone for mutual consent with other tenancies, they've always agreed, so it was simple. How naive of me!  Set timelines for the a, b and c. If those fail, then if I still feel justified Section 13.I've dithered too long on this then did a rush job in the end, asking for advice at the last minute.

Thanks everyone.