Deposits.

A landlord will normally ask for a deposit from the tenant when the tenancy begins. Both the the landlord and the tenant should make sure that the tenancy agreement states:-

• How much the deposit is.
• Who holds it.
• When money can be deducted from it (for example, for unpaid rent or damage to the property); and
• When the tenant will get the money back. If the landlord wants the tenant to pay a very large deposit, the tenant could challenge this in court under the Unfair Terms in Consumer Contracts Regulations.

.: Rent increases.

A landlord's right to increase rent depends on the type of tenancy.

.: Assured tenancies.

Assured tenants can sometimes challenge a rent increase. If the tenancy is for a fixed term, the rent is normally agreed at the start and cannot change during that term. The only exception to this is if the tenancy agreement includes a rent review or increase arrangement (or if the tenant agrees to an increase). With a periodic tenancy (one which runs from week to week or from month to month, depending on when the rent is paid), the rent can go up in the first year only if the tenancy agreement allows for this.

After a year, the landlord can increase the rent by giving at least one month's notice on a special form. If the tenant thinks the new rent is too high, they can contact their local Rent Assessment Committee (RAC). RACs are independent bodies which deal with rent issues. Your local RAC will be listed in the phone book. RACs can set the rent according to what is charged elsewhere in the area. They can uphold the landlord's rent demand (or even increase it) as well as reduce it. The rent fixed by the RAC is the maximum the landlord can ask for for one year.

.: Assured shorthold tenancies.

The landlord's right to increase rent is the same as for assured tenancies. A tenant can also apply to the Rent Assessment Committee at the start of a tenancy if they think the rent is excessive. For tenancies which started between 15 January 1989 and 28 February 1997, the rent can be challenged any time during the initial fixed term.

For tenancies that started after 28 February 1997, the rent can be challenged within six months of the start of the tenancy. But it may be risky for the tenant to do this, as the landlord can legally evict them at the end of the tenancy period. At the end of the fixed term, the landlord may offer another fixed term at a higher rent. If the tenant signs a new agreement, they cannot then apply to the RAC to set the rent.

.: Regulated tenancies.

Tenants and landlords with regulated tenancies can apply to their local Rent Officer to set a 'fair rent', if they don't already have one. The Rent Officer can put the rent up as well as down. If the fair rent is lower than the tenant has been paying, the tenant may be able to get backup to two years' overpaid rent. If the fair rent is higher than the tenant has been paying, the landlord must give notice before they can start charging the higher rent.

A fair rent is set for two years, but the tenant or the landlord can appeal to the Rent Assessment Committee. It may either increase or decrease the rent set by the Rent Officer. After two years, or if there has been a significant change in the property's condition, the landlord or the tenant can apply for a new fair rent may be increased, the only option for the tenant is to negotiate with the landlord.