Reducing the Rent
How do I reduce the rent?
The means by which a landlord actually instigates a rent reduction are varied and will depend on the terms of the tenancy.
The most obvious way to do it one would think would be to issue a section 13 notice.
However, the section 13 notice can only be used by landlords to increase the rent.
Neither is it possible to just grant a rent reduction verbally, or even by letter. Both these options would be unenforceable because of the lack of contractual consideration.
The only sure ways to reduce rent are:
a. Creating a new tenancy agreement at the reduced rent; or
b. Deed of Variation (because anything embodied in a Deed circumvents the ‘lack of contractual consideration’ problem).
For most landlords the easiest solution is to grant a new tenancy. The complication to this arises if the tenant is behind on the payment of their rent. This is because by granting a new tenancy the rent arrears will become a ‘former tenant’ debt, and thus cannot be used as a formal grounds for possession in relation to the new tenancy.
The only way around this is to insert a rather technical clause in the tenancy agreement making the repayment of any former rent arrears a condition of the new agreement. The other way is to get the tenant to sign a deed.
The simplest and most advisable method is to require the tenant to bring their rental account up to date before revising the agreement.
Landlord Bible Chapters
Forms for Letting Property
Finance and Tax on Rental Property
- Holiday Let Tax Guide
- Capital Gains Tax (CGT)
- Landlord Mortgage – Key Definitions
- Guide to Landlords Stamp Duty Land Tax (SDLT)
- Selling a buy-to-let property
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- Why Invest in Buy-to-let?
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Rental Property Regulations
Investing in BTL Property
- Property Rental Yields
- Calculating Property Investment Returns
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- Understanding The Risks Of Buy-to-let Investment
- A Guide for New Landlords
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- The Tenant Does a Bunk!
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- Getting Your Money Back from a Tenant
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Letting Rental Property
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- Tenancies in Scotland
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- The Tenancy Agreement
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Legislation of Letting Property
- Discharge and Modification of Restrictive Covenants
- Leasehold Valuation Disputes
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- Rent Disputes Between Landlord and Tenant
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- Possession Proceedings by Landlords
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