Letting agents are being urged to open discussions with tenants before rent increases are formally issued to prevent disputes unnecessarily reaching tribunal.
Propertymark says greater education is needed around the First-tier Tribunal process following changes introduced under the Renters’ Rights Act.
Tenants can challenge proposed above-market rent increases through the tribunal, while landlords must use the statutory process to increase rents for private periodic tenancies.
Propertymark argues early intervention by agents could help landlords and tenants reach an agreement without entering the tribunal process, saving both sides time and potentially protecting longer-term tenancies.
EARLY CONVERSATIONS
Kim Lidbury (main picture, inset), President of ARLA Propertymark, advises agents to speak to tenants before a rent increase notice is issued, particularly where there may be financial difficulties or other concerns.
She says: “A tenant is sometimes using a Section 13 notice as an opportunity to raise concerns for other reasons outside of rent increases, or they are not telling us about their circumstances.
“Because they are not having those conversations with us, they have gone straight to the tribunal stage, which can make things more difficult.
“Most landlords have costs and responsibilities, and it is a good outcome for them and the tenant if they stay at a property for some time.”
CLEARER GUIDANCE
Greg Tsuman, Past President of ARLA Propertymark, says more needs to be done to help landlords and tenants understand how tribunals assess rent disputes.
He says: “We need much greater clarity around the tribunal process, including clearer guidance, simpler forms and practical advice for tenants who want to challenge a rent increase before it takes effect.
“There also needs to be a better understanding of the evidence tribunals consider. They are looking at achieved rents rather than simply advertised asking rents, and that distinction is important for both landlords and tenants.”
Tsuman adds that negotiation remains an alternative to tribunal proceedings.
“Agents are guiding landlords into not asking for unreasonable hikes. There is nothing in the legislation that prevents landlord and tenant from reaching an alternative agreement.”
