Rent increase

[r16chh]

Hi,

I want to increase my dss tenants rent as it has not gone up since the tenant moved in (June 2008).

I currently charge £375 a month but I have been told the council will pay up to £425 (lha), how much do you think I should

raise it to, will it affect there current benifets if it goes up to much, should I write it in the contract to rise every year by a certain % ect.

Any advice welcome.

Cheers

Richard

[Mortitia]

What does it say in your tenancy agreement about rent increases? To put it up by £50 is a bit steep. I would try for £400pcm especially if you have a good, reliable tenant.

Mortitia

[Trenners]

Hi Rich,

The process for increasing the rent is the same whether the tenant works .. or claims DSS benefits.

You need to issue a Section 13(2) document stating that you propose to increase the rent. You need to give the tenant advanced notice as, if they are not happy with the rent increase, they must have the time to terminate the existing tenancy agreement with you (legally) and find another property.

It sounds like your tenants are statutory periodic tenants ... so you should give them at lease 6 weeks notice (ie: you tell them 2 weeks before the rent is next due that you will be increasing the rent "the month after next"). They then have 2 weeks to decide whether to accept the new rent or serve the 1 months notice and leave.

Regarding raising rents for DSS claimants - Housing Benefit is being cut from April 2011 as part of the Budget deficit reduction programme so even if the Council are paying £425 right now, this will certainly drop after April 1st.

If it was me, and they were good tenants, I would probably increase the rent by £10 as they can probably afford this increase even after their benefits have been cut.

Good luck,

Mark

[r16chh]

Thanks for your replys.

I dont want to lose the tenants but wouldnt mind any extra rent, but Im sure they cant or wouldnt want to pay any rent out of there own pocket.

How do I know what rise to give that will not affect the tenants, i.e. council pay the extra.

Regards

Richard

[Trenners]

Rich,

You can check the current rate of Housing Benefit (also known as Local Housing Allowance) in your post code region for a 1 bedroom property by visiting this web site:-

https://lha-direct.voa.gov.uk/Secure/LHARateSearch.aspx?SearchType=PostCode

However, you tenants will be receiving benefit based on the rate in the month that their tenancy commenced. So - for example - if they had moved in during October 2010 they will still be receiving the benefit rate for a 1 bedroom property as defined in October 2010.

In October 2011 - at the anniversary of their tenancy - the benefit rate will be adjusted to the level defined for October 2011 and so on.

Rates are dropping, as a whole, from April 1st for NEW tenancies.

As you already have a tenancy in place then the new rates will only apply at the ANNIVERSARY date + 9 months for your specific tenants. So, based on the October example above, .... then the reduced Benefit payments (at the post April level) would apply from October + 9 months .... ie: July 2012.

If you want to make sure you do not increase the rent too much .... I would suggest you don't increase the rent at all!

Best Wishes

Mark

[Durwin]

I think you should wait for the agreement to expire and then with the new agreement . you should include the terms with specific percentage will be added to the monthly rent on every renewal of the agreement or on monthly basis.