can i increase rent after a 6 month ast tenancy? and tenancy deposits

[khanzenab]

i have a real bad tenant who has been nothing but pain... initially on a 6 month assured shorthold tenancy.. now i am having difficulty getting rid of him!! can i increase the rent now, as the initail rent was on the initial 6 monthsof tenancy, or is there a procedure to follow for putting up the rent. homes with 4 beds in my area are now at 550 p.c.m and i had started the tenant on 475 pcm.. i am also working with the local council to get him accomodated with a council home,hence can the rent be increased in the interim, as he is claiming full housing benefit. i had served him notice 21 to take posssession on the 14th oct 2007, but tenant claims that he cannot find alternative house..

on the otherhand, he is also taking me to court for not protecting his advance months rent!!! he now claims that the initial advance rent was really a bond, hence i am liable for 3x the amount and advance rent!! i has specifically given him a receipt for the initial payment, and stated on the receipt" 2 months advance rent paid" on the 7th april 2007( tenancy deposit rules came into force on the 6/4/07 !) i was not aware at the time..also the tenancy agreement says " payable, two months rent advance on start of tenany agreement, and signed by tenant... i sensed that the tenant was upto games with me, as i had offerd to pay back the advance money i had took, with a witness present on two occasions, 3 weeks before the end of his tenacy period(14/10/07), to assist in his moving costs.. i went on and protected the advance rent into D.P.S.custodial sheme on the 1st oct 2007, 2 weeks before the end of the tenancy period, to find out on the 12/10/07, that i received a courts claim , demanding 3x the bond! the tenant was also told on the 3/10/07 and by a formal letter to him, with a witness, which stated that his advance was protected in the govt. DPS scheme, prior to me receiving court claim for 3x that amount!!! where do u think i stand?

[CH1]

Khan/ Zenab Any increase in rent should be after you have given tenant sufficient notice at least one month, in your case I would put it in writing. You would either have to issue a new AST detailing the new rent or leave the current AST running and issue a Section 13 Notification of rent increase document. I have done this recently after 6 months as I too had a tenant in on a lower rent. However, I did give about 2 months notice of my intention to do this.

Not sure about the DPS scheme as I’m new to that myself as my tenancies started before 6 April so I’ve not had to use it, but will be doing so for any new tenancies. Sounds to me tenants are more geared up on TD schemes than Landlords themselves and are looking to catch you out! If it wasn't for forums such as these I wouldn't know much about it, as some letting agents (if you used one -I think you probably didn't) also do not mention it specifically. I should think though as you protected it in the end and can prove you did so you should have some room for maneouvre….

[Trenners]

Hi Khanzenab,

If you have a really bad tenant - don't put up the rent - just get rid of them. Initiate court proceedings NOW to get a possession order. The tenant should have left by 14th October so they are now illegally living in your property.

Complete the N5B form today - for accelerated possession - and submit it to your local court office.

Do you really think a tenant who is illegally living in your property is going to take any notice of an increase in rent ?

GET RID.

Good luck,

Mark

[Matthew]

Hi Mate,

If the contract states rent payable 2 months in advance & has no mention of deposit, then that is what it is, rent in advance. You can take 6 months rent in advance, and you wouldn't have to protect it. It is not a deposit!

You shouldn't have protected the rent in advance as this makes it look as if you think it is a deposit and are trying to cover it up by protecting it near the end of the tenancy to avoid the penalty of 3 months rent.

The only thing you must ensure is that you reimburse your tenant the months rent at the end of the tenancy. You cannot deduct anything from this amount, even if the place is trashed, you have to give it back, otherwise you are treating it as a deposit. You can still charge the tenant for damage and pursue him for it after you have given him this money back.

The main point, is check that the AST does not mention a deposit, then legally you should be ok.

Regards,

Mat.

[Simon Dewsberry]

"that i received a courts claim , demanding 3x the bond!"

What exactly have you received?

As if they are taking you to court for 3x the bond ....the claim can be refuted as inaccurate ...they can only claim 1x the bond ..it is upto the court to FINE or PENALISE you 3x ....

How mch have you "protected" in DPS the dep on w/m or was it a D/w ...as i recall only £125 ....also is this mentioned in the ast anywhere ?

Did you issue receipt for it and if so what did it say ?

Mat is right on this one ...i wouldn't have protected this £125 under the circumstances as it was clearly a hire fee for the w/m d/w ????????????????!!!!!!!!!!!!!!!!!!!!!!

But you are past that now ....and it is time for damage limitation ...i would have a chat with T and negotiate a mutually agreed deal................Personally i would get him out, and fast .....In return for very fast vacation i would do a deal on the "3x" (which is going to be far cheaper than losing 2/3 months rent and court costs to evict!!!)get talking and negotiating..................

S