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Should I include a rent review clause?

Started by jez9999, December 07, 2017, 03:43:35 PM

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jez9999

It's quite common to have a rent review clause in an AST agreement about increasing the rent 5% per year or something.  However, I've been reading around and a landlord can just issue a S13 notice to increase the rent after the fixed term has ended anyway.  In fact this takes precedence even if there's a rent review clause in the AST agreement!  So is there any point at all in putting a rent review clause in the agreement?  Is it easier to increase rent through such a clause than through a S13 notice?  Or should I just not bother with it?

Hippogriff

No point.

It's better to agree rent increases by agreement, then even no Section 13 is required. A Section 13, if deemed unreasonable, can - of course - be formally challenged. Better to agree things. Get your Tenants into the right frame of mind that rent increases will be regular and modest... 5% is not really modest in the current climate... 2% would be more modest, then round it (up?) to the nearest £5 or something. This is the frog and boiling pot of water approach... science has proven it works.