Your landlord can apply to a Rent Officer at Rent Service Scotland to increase rent in excess of the rent cap to partially cover an increase in certain costs associated with letting the property.
These costs include:
- mortgage interest payments on the let property,
- increases in the premium for certain insurance policies, and
- service charges which you have agreed to pay towards as part of the terms of your tenancy.
The increase in the landlord’s costs must have happened in the six months immediately before they apply to Rent Service Scotland.
What your landlord must give you
Your landlord must give you notice in writing when they apply to Rent Service Scotland. They are also required to give you certain information including:
- what costs have increased
- the proposed rent increase
- when any new rent payments would start
- confirmation that the rent increase will not apply unless it is approved by Rent Service Scotland or the Tribunal
After an application has been made
The Rent Officer will decide:
- if the landlords application is valid and the rent should increase
- how much the increase should be
They will let you and your landlord know the outcome. Your landlord cannot increase your rent until the Rent Officer has made a decision. If the Rent officer decides against the increase, your landlord cannot increase your rent. Either you or your landlord have the right to appeal the Rent Officer’s decision to the First Tier Tribunal.
Your rent will not increase until at least 3 months after your landlord applied to the Rent Officer. If the Rent Officer makes the order more than 3 months after your landlord applied then you will pay the new rent on the next payment date that falls at least 14 days after the order is made.
The amount the rent can increase
Your landlord will be able to apply to Rent Service Scotland to increase the rent to cover up to 50% of their increased costs. This cannot be more than 6% of the existing rent.
If you or your landlord do not agree with the Rent Officer’s decision either of you will be able to appeal to the First Tier Tribunal for Scotland (Housing and Property Chamber).
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