A Complete Guide to Renting Out Your Property

When it comes to rental agreements, it's important for landlords to consider how and when rent increases will be addressed. The specifics can vary depending on the type of tenancy in place. Periodic Tenancies For tenancies that roll on a week-by-week or month-by-month basis, landlords can typically only increase rent once a year without the tenant's agreement. Fixed-Term Tenancies During a fixed-term tenancy (e.g., six months), rent can generally only be increased if the tenant agrees to it. If not, any increase can only take effect after the fixed term concludes. Rent Review Clauses Some tenancy contracts include rent review clauses, outlining when and how rent increases will occur. This clause specifies the timing of the increase, the notice period provided to tenants, and the calculation method for the increase amount. If you need assistance managing payments or drafting tenancy contracts, butters john bee's property management services offer dedicated support to landlords. Learn more about Landlord Advice. Section 13 Notice When a tenancy agreement lacks a rent review clause or has expired, and the landlord wishes to raise rent, a Section 13 notice can be used. This notice requires at least one month's notice for weekly or monthly agreements, and up to six months for longer-term agreements. Determining Rent Increase Amounts Landlords must obtain tenant permission for rent increases exceeding previously agreed amounts. The increase should also align with local average rents for similar properties. For instance, if one-bedroom flats in an area rent for around £600 per month, it wouldn't be fair to ask £900 for a comparable property in the same location. Notice Period for Rent Increases Landlords must provide adequate notice before increasing rent. For weekly or monthly payments, one month's notice is required. For yearly tenancies, landlords must provide 6 months' notice. Remember, rent increases during fixed-term tenancies can only occur if explicitly allowed by a rent review clause in the tenancy agreement. Proposing a Rent Increase Landlords can propose rent increases by: Renewing a tenancy agreement at the end of the fixed term with an increased rent Agreeing to a rent increase with the tenant and documenting the agreement Using a 'Landlord’s Notice Proposing a New Rent' form to increase rent after the fixed term ends Tenant Response to Rent Increases Tenants can refuse a rent increase and challenge it through a tribunal process (e.g., Section 13). During this time, they must continue paying rent at the existing rate. If landlords and tenants cannot reach a rent agreement, the tenant may decide to vacate the property. For expert advice tailored to your local area, butters john bee offers comprehensive support to landlords and tenants alike. Contact us!

Right to rent checks have been mandatory for landlords and letting agents since February 2016. It's crucial for landlords to ensure that prospective tenants are legally permitted to reside in the UK and rent residential properties. Failure to conduct these checks or allowing tenancies to commence with ineligible tenants can result in significant fines. Understanding the Right to Rent Scheme The right to rent scheme requires landlords to verify that prospective tenants have the legal right to reside in the UK. This check is a legal requirement for all landlords in the private rented sector. Commencement of the Right to Rent Scheme The right to rent check was implemented in England in February 2016 under the Immigration Act 2014. Currently, it is not applicable in Scotland, Wales, and Northern Ireland. This requirement only applies to tenancies that began in or after February 2016. Responsibility for Right to Rent Checks Landlords are responsible for conducting right to rent checks on prospective tenants in the private rented sector. Additionally, this responsibility extends to: Occupiers allowing lodgers to reside in a property Tenants sub-letting part or all of a property (with written agreement from both parties) Letting agents appointed by landlords in writing to oversee compliance with the right to rent scheme Components of Right to Rent Checks Landlords should conduct right to rent checks on all prospective tenants, regardless of nationality, to avoid any allegations of discrimination. Here are the criteria for conducting these checks: UK and Irish Citizens Manual inspection of original passport, driving license, or UK birth certificate EU, EEA, Swiss Citizens Use the Home Office online service to verify tenant's documents by requesting their date of birth and 'share code'. Citizens from Outside the EU and EEA Use the Home Office online service to check immigration status Types of Tenants Subject to Checks All tenants applying for tenancies in the private rented sector, including adults not named on the tenancy agreement, must undergo right to rent checks. However, children under 18 or non-rent-contributing guests are exempt. Certain tenants may also be exempt from these checks if residing in specific types of accommodations. Understanding Tenant Occupancy After completing a right to rent check, it's essential to understand the tenant's status: Unlimited Right to Rent British citizens, Irish citizens, or EU, EEA, Swiss nationals with indefinite leave to remain in the UK under the EU settlement scheme Time-Limited Right to Rent Individuals with limited leave to enter or remain in the UK, requiring status verification within 28 days of expiration No Right to Rent Individuals lacking valid leave to enter or remain in the UK, with no permission from the Home Office to rent Methods to Verify Right to Rent Landlords and letting agents should be familiar with methods to verify tenant evidence: Manual Verification For UK and Irish citizens, use original passport or birth certificate, verified with the tenant present Home Office Right to Rent Service For EU, EEA, Swiss nationals, and non-EU, EEA citizens, request a 'share code' from the tenant and conduct a digital check using the Home Office online service Penalties for Illegal Tenants Landlords can face fines up to £3000 for renting to individuals without a right to rent or who fail right to rent checks. The Home Office may issue a referral notice requesting evidence of correct checks. Landlords who demonstrate compliance with right to rent checks can mount a defence against penalties. Get Expert Guidance on Rental Property At butters john bee, we offer advice on all aspects of the rental process, especially for first-time landlords. If you're considering letting your property, we provide a free valuation to guide you through the process. Contact us!