Tribunal challenge to a rent increase

Why it matters

Landlords who serve a round number increase with no comparables often lose part of it at tribunal and gain a soured relationship.

Legal requirements

• The increase must be proposed on the prescribed notice with the correct minimum notice period.
• Only one increase can be proposed in any twelve month period.
• The tribunal determines the open market rent for the property as it stands.
• The tribunal cannot award more than the landlord asked for.

Common mistakes

• Using an out of date notice form or the wrong effective date.
• Justifying the increase by your mortgage costs rather than market evidence.
• Comparing to newly refurbished properties when yours is dated.
• Ignoring the tenant's letter and letting the matter go straight to a hearing.

Practical guidance

• Gather three to five genuine comparables from the same area and property type.
• Photograph the property so condition is properly reflected in the assessment.
• Explain the increase to the tenant in plain terms before the notice arrives.
• Consider a slightly lower negotiated figure rather than a contested hearing.

What the tribunal looks at

The panel assesses what a willing tenant would pay a willing landlord for this property, in its actual condition, on the actual terms. Tenant improvements are disregarded. Disrepair reduces the figure. Furnishing, parking, energy efficiency and the size of the rooms all feed in. Bring evidence for each of those points rather than a general assertion that rents have risen.

Preparing your comparables

A comparable is a let property, similar in type, size, condition and location, with a recent agreed rent. Screenshots of asking prices are weaker than agreed lettings, so include both where you can. Note the date, the address, the rent, the number of bedrooms and any obvious differences from your property, and be candid about where yours is weaker.