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Section 13

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Author Topic: Section 13  (Read 118 times)
Newbie
Posts: 4

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« on: December 17, 2021, 06:25:57 PM »

I need some clarification on section 13, please.
I decided to increase the rent, contacted the agents to instruct them to serve section 13 and was surprised to learn that I need to wait till May 22 as I served it already in May 21. I get that I can only use it once in calendar year, but I was surprised that it had been used.
Situation was like this:
In March/April my tenant serve me notice that she wants to move out. I agreed, remarketed the house with increased rent and was hoping to find new tenants. Then she decided to stay and withdrew her notice. I said that this is ok, but she would have to pay higher rent.
And we carried on like this.
If I knew, that this is happening, I would rise the rent more significantly, not just a bit...
Looks like by trying to be ok with tenant staying in, and I harmed myself.
But the two questions bugs me:
Was section 13 the best way to do it?
Was it the only way?
Thank you for your help. Kris
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« Reply #1 on: December 18, 2021, 11:24:56 AM »

The main thing you have to ask is whether the rent is reasonable for the state of the property and market rates in your local area.If so,and the tenant pays her rent on time, why do you want to raise it again so quickly?  You don't have to serve 13,I just write a formal letter giving tenants 2 months notice of the increase,and ask them if they wish to continue.I have never had refusal,but then I rarely raise rents if I have a good tenant,and only by a modest amount.
Newbie
Posts: 4

I like property

« Reply #2 on: December 18, 2021, 12:20:36 PM »

When the tenant moved in the rent was frozen for 2 years. 450PCM. During the described turbulent period in April/May 2021 I advertised the property on Righmove for 475, but as she decided to stay the agency rose it to 460. The 3 bed houses in the area are for about 500 - 550 and this is 4bed. I need to increase it as we did a serious renovation inside, as the tenant requested which costed me over 7k. My costs, her improved better living condition and market prices tell me it might have been the best time to do it. Then I learnt it might not, due to reasons described earlier. I am thinking about surrendering current AST and suggesting signing a new one with increased rent. This would not be s13, would it? Would this be something smart to do? What could I do if she refuses to sign it?
« Last Edit: December 18, 2021, 12:52:03 PM by KrzysztofK »
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« Reply #3 on: December 18, 2021, 04:40:30 PM »

Did you sign a new AST  around May?  When does it run out? You can serve notice to quit 2 months before that expires. You can't just cancel it, if that is what you are asking. It does not sound likely that she will agree to a rent that is in keeping with the higher market rates you quote.If she refuses to sign, it will automatically go onto a periodic tenancy. If she refuses to leave, it is a whole different  scenario.  I cannot  personally  imagine doing a serious renovation costing 7K if it was just on a whim from the tenant,so I am assuming this was  important work that needed doing? Why on earth did you agree to her staying on if it was obvious that she was not going to pay the new higher rent?

I think you need to sit down and decide what it is you want to happen,and whether you can realistically achieve that. At the moment your ideas are all over the place,which must be making you very anxious.You need to feel confident about quickly reletting,as voids can work out very costly, Getting rent paid on time is not to be sniffed at.
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