Real Estate Tip of the Week: Interim Rent – Do You Need To Take Action?
Published 17 February 2014
If your tenant is protected by the Landlord and Tenant Act 1954, and the lease is due to expire in the next 12 months, is there any point in rushing to serve a section 25 notice to begin the renewal process?
There may well be, if the property is under-rented – it will protect your right to claim interim rent from the earliest possible date.
Interim rent (a market rent calculated in accordance with the provisions of the 1954 Act) is payable by the tenant from the earliest date, which could have been specified in the section 25 notice or section 26 request actually served. This means that until you serve notice, you won't trigger the ability to recover interim rent.
Beware, though – this works both ways. If the property is over-rented, the service of a section 25 notice could trigger a reduction in the rent.