Hello,
I hope you had a good Christmas
One of my Let Only landlords has sold 2 of his properties. I sent out the relevant paperwork (Sections) on his behalf but in case the new landlord gets in touch to ask me, can he:
1. at the end of the 6 month fixed term (May 2021) issue a new tenancy agreement for the tenant to sign with his details, with an increase in the rent from the start of the new agreement?
2. Do the same (new agreement & rent increase) but for another tenant who is on a rolling periodic contract. Would it be 1 month’s notice of the proposed rent increase in this case?
1 Comment
If the new landlord gets in touch, the first thing they need to do is send a section3/48 notice. It sounds like you’ve done it for the outgoing landlord but it’s also a duty of the new landlord. Their solicitor may have already done this in which case all good. We have a template here.
If they wish, they can sign a new agreement anytime. No need to wait for the fixed term to end. Of course, the existing tenant needs to agree but assuming no problems then it’s fine. The old agreement automatically dies on a new one being created which is known as “surrender and re-grant by operation of law”. This works because only one tenancy can survive at any one time so old ones automatically end (even if they are in the fixed term).
Similarly, if the tenant agrees a new rent, a new tenancy can be done right away with the new rent. Notice isn’t required where all parties agree. If they don’t agree, it could be left rolling as a periodic and then serve a section 13 notice.
Please see here for options for increasing the rent: https://www.landlordsguild.com/how-to-increase-the-rent/