LANDLORD Q&A
Check our Landlord Q&A section for frequently asked question from Landlords.
My agent mentioned a break clause tenancy. What exactly is this..?
A break clause will most commonly allow either the landlord or the tenant to give notice at an agreed interim stage of a tenancy. This is usually requested by the landlord or the tenant if the initial fixed term is for a year or more.
For example, a 12 month tenancy may have a 6-month break clause which means that the tenant or landlord can give notice to terminate at the 6-month stage. Notice cannot be given prior to this date nor can it be given after the break clause stage has expired. Care should be taken when instructing the notice as it is very important to take into account how much notice is required and when this has to be served. Some tenancy agreements state that one month notice must be given by the tenant to fall in line with a rent due date. If notice is given just one day after the rent due date then this can in fact mean that nearly 2 month’s notice is given because it is not effective until the next rent due date. The notice for the break should be given to expire at the 6 month stage in this example.
Landlords must provide the tenants with 2 months notice whereas tenants should provide 1 month notice to the landlrod should they want to leave after the first 6 months.
My current tenants are coming to the end of their 12 month tenancy. How do I go about increasing the rent....?
If the Tenancy Agreement makes no provisions for the landlord to make a rent increase after a certain period then you have two options:
1. Renew the contract at the end of the fixed term but at an increased rent.
2. At the end of the fixed term, serve a Section 13(2) Notice of the Housing Act 1988, proposing an increase in rent.
The rental increase should be considered in relation to the rental to that of other similar properties in the same area. If the increase puts the rent well above the current market value, tenants can apply for the rent to be assessed by a Rent Assessment Committee. If they then reduce the rent, you are bound to this figure for 12 months.
It is always worth asking your agent what the current rental market is like as an indecent rent increase can scare tenants into handing in their notice.