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Question

Changing the Rent (England)

Rent increase during initial six month AST

4 Sep 2017 | 6 comments

Can we increase the rent during the initial six month tenancy or must the rent stay the same during this time?

Thanks

Peter

Answer

6 Comments

  1. guildy

    The rent needs to remain the same for the first 12 months unless the tenancy has a specific rent increase clause. If the term was longer than 12 months, it can’t be increased until the end of the term (unless there is a specific term in the tenancy).

    It’s more common for commercial leases to include increasing rents during the term because often there’s a discounted or free rent period initially and then increasing to normal rent over time. It’s quite rare for residential to want to increase before 12 months.

  2. 1353

    We have operated with an annual rent reveiw at the same time each year so depending on when a tenancy starts the rent review could be soon after they move in or up to a year after.
    We specify in a separate document that we do this but it sounds like we may need to put that in the AST agreement itself?
    We have many similar properties in a block so would like to avoid having lots of different rent amounts with staggered rent review dates.

  3. guildy

    As long as what you do is agreed by the tenants it’s fine. You should attach the document you use to the tenancy and add it to the list of documents so they sign for it (assuming you use our builder) . Having the tenants sign the actual document itself would also be an extra security measure.

  4. guildy

    I should add, it’s only the section 13 notice to increase the rent (where the tenant is not agreeing the increase) that cannot be used within first 12 months or fixed term (if longer).

    Please see here for our rent increase guidance.

  5. 1353

    That’s been very helpful thanks

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