Mark Walsh Estates 

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The Section 13 notice, otherwise known as Form 4, is a prescribed form available on the UK Government website. It allows landlords to raise the rent on a periodic assured or assured shorthold tenancy by giving the tenant a notice of increase.

As a prescribed form, the Section 13 notice must contain the exact wording required in the document. These forms are regularly updated without notice, so it is always best to download the latest version directly from the government website.

Download Form 4 (Section 13 notice) for England here.

How much notice should I give for a rent increase?

You are required to provide sufficient notice before the rent increase takes effect. At a minimum this means that your notice must be:

• one month for a tenancy where rent is paid monthly or for a lesser period, for instance weekly or fortnightly

• six months if the rent is paid annually

• in all other cases, a period equal to the length of the rental period of the tenancy - for example, three months in the case of a quarterly tenancy

In addition to this, you may not increase the rent within 52 weeks of the last rent increase or the start of the tenancy agreement. The only exception to this is where the tenancy agreement began as a fixed term tenancy and was replaced by a statutory periodic tenancy. If that is the case you may serve the notice as soon as the statutory periodic tenancy begins, even if it is less than 12 months since the fixed term tenancy began.

Provided you have served the appropriate amount of notice, on the next available rent due date, the rent increase may take effect.

I have never increased the rent before on this tenancy agreement. How should I answer question three on the Section 13 rent increase form?

If you haven't increased the rent on this tenancy before, the answer to questions three and four are the same; the date on which the new rent will take effect from.

How do I serve a Section 13 notice of rent increase on tenants?

There are a few ways you can serve a Section 13 notice:

• Via post: Send the notice to your tenants via first-class post and make sure you ask for proof of posting at the Post Office to avoid any disputes about when the notice was sent.

• In person: If you're serving the notice in person, it's best to go with a witness and take a photo of the envelope being posted through the letterbox of the property. If the tenant isn't in or refuses to acknowledge receipt, you should complete a certificate of service (N215) form as evidence that the notice was served in person.
   

Can my tenant dispute the rent amount?

Yes. If your tenant wishes to challenge the proposed rent, they can apply to a Tribunal using Form 6. If the tribunal does assess the rent, they will base their decision on the market rent for the property. This may be adjusted up or down, so it is sensible to discuss this with the tenants beforehand and show them if your proposed rent is below the current market rent for the area.

 

Things to consider before increasing rent

Before increasing the rent you should take the time to consider whether it is the right thing to do, how much to increase it by and the frequency of the increases.

How will the tenant react to a rent increase?

One of the dangers of a rent increase is that the tenant will struggle to pay an increase. It is important to approach this situation with sensitivity, as telling your tenants that you intend to increase their rent costs could cause anxiety if not done carefully, even if you are within your legal rights to do so.

By engaging constructively with the tenant ahead of the rent increase, you can get an idea of what they can afford and what level of rent would lead to the tenant ending the tenancy. If the tenant is likely to leave as a result of this you should consider how much it will cost to relet the property, whether they have been good tenants, and how buoyant demand is in the local area.

Losing a good tenant may not be worth a relatively small increase in rent, particularly if it leads to void periods afterwards.

How much can I increase the rent by?

The question of how much rent can be increased by is a topic of frequent debate among landlords. The UK government has stated that all rent increases should be 'fair and realistic' and in accordance with average costs in the local area. However, the vagueness of this recommendation makes it difficult to specify an amount.

National statistics shouldn't be taken as a definitive guide as prices can differ significantly by region. It is more advisable to observe the rent costs in your local area before you determine how much you should be charging your tenants. You can do this by looking at properties similar to your own and noting how much their rent costs are. If your rent stays within a similar range as these properties, you will have more certainty that you are charging at a fair rate.

How often should I increase the rent?

As a general rule, landlords are unable to increase the rent more than once a year. If you have already increased the rent in the last twelve months then most options to increase the rent will not be open to you.

As to whether you should increase the rent every twelve months, this will depend largely on your local market and what your tenants can afford to pay. However, there is an advantage to regular small increases as they are less likely to cause significant issues for tenant finances.