UK Landlord Forum / Life

I have 5 year AST with tenant with some very healthy rent rises built in on day one as a clause - I am imposing those rises and tenant is paying because he thinks he has no choice. But, I've been told that rises (which under fornula rise about 12.5% per year) may be cancelled even though they are in contract?

Thoughts?

You are taking advantage of your tenant. This isn't fair.

Whether it's legal? I suspect not, but hey, if you want to test it out it will cost you time, money, and possibly a very good and gullible tenant.

Do what you think, do whats right, do whats fair, do what you can get away with, your choice, but I can guarantee you that this is not the right way to run a business.

And I was under the impression ASTs could be for up to 3 years, otherwise they needed to be a Deed. I'm unsure as to the ramifications of this, as I've never signed anyone up for longer than 12 months.

However, I agree with the comment regarding taking advantage of a potentially gullible Tenant. Rent rises of 12.5% per year seem out of place in the current climate. Unless everyone accepted that it very deliberately started low as some kind of incentive and it's a means of bringing it up to an accepted market value.

I think the enforced rises could be easily challenged by a savvy Tenant.