Rent Increases In Fixed Term Tenancies

Usually the agreement will state that the rent will be fixed for the length of ‘the fix’ i.e. six, nine or 12 months. It may however ‘fix’ the rent for six months and then say it will be reviewed at certain intervals. If it does say this, then the rent can go up. If you don’t want to agree to pay higher rent in the future, don’t sign a lease that commits you to it in advance.

If the landlord or agent wants to increase rent by more than it states in the lease at the end of any fixed term, it becomes your choice to either pay an increased rent or give notice and find somewhere cheaper. Do remember that, as usual, if you decline you are unlikely to have your lease extended.

If you have a fixed term and a lease which does not mention rent increases, your rent can only be raised during the fixed term if you agree. If you disagree the landlord has to wait until the end of whatever length ‘fix’ was on the lease before he can either legally propose a rent increase or act to get the building back.

Your landlord may not propose this method of increase however. Some landlords and agents offer a whole new lease, new fixed term, and a new rent level, every six months. These you must either accept, or decline, then move on, because they are effectively whole new tenancies every time. By offering a whole new secure period, the landlord/agent sometimes feels a rent hike might just be acceptable.

Truthfully, being a tenant in today’s climate is tough. Sometimes ‘negotiations’ are the last things that management expects. It’s terribly hard to advise anyone how to make these very personal judgement calls about what’s fair, what’s reasonable. Tenants are invariably on the back foot because they have no meaningful rights once their fixed term has expired. So, you pays your money and you takes your choice. Knowing how costly and inconvenient moving is sometimes makes management push their luck. A new lease with six months more guaranteed security might be worth the little extra (especially when faced with the trawl and expense of a move), but don’t get fleeced and pay more than a property is worth.

Rent Increases For Contractual Periodic Tenancies

Your landlord should give you at least one month’s notice in writing of any proposed increases in rent, usually using a special form called Landlord’s Notice proposing a new rent under an Assured Periodic Tenancy of premises situated in England. If you receive one of these you have two choices. Either pay the increase, or explain that you cannot afford it. Then either negotiate a rent you can afford, or decide you would rather move. In which case, one or other party serves written notice to quit.

Rent Increases When Your Lease Has Become A Statutory Periodic Tenancy

This is once any fixed term has expired unless a new lease has been signed. Again, if your fixed term has expired and you and your landlord want to consider continuing the tenancy, they may want to increase your rent at some time (usually annually). This can be done by using the same form mentioned earlier. Again you have the same choices as previously, and further increases can arise each year the tenancy continues. Again landlords/agents should give you one month’s notice of any proposed increase, an opportunity to negotiate/ decline. And again, if agreement can’t be reached on a higher rent one or other party serves legal notice to quit.

Licences

Genuine licences are in reality much more flexible arrangements between parties than tenancies. If you have a licence all the terms need to be arranged between yourself and your landlord. Given their almost complete lack of security, landlords are able to ask for rent increases in whatever way is worked out between the parties. Licensees have no formal mechanism for redress. Simply, if the rent reaches a level which you feel is too high, your only genuine strategy is to look for a more reasonably priced unit.