Rent - Been told they have to pay a 27% increase
Discussion
Smart brains of PH...
I have a friend who has been renting a flat since March 2009 through the same agent and on this renewal they are saying the landlady wants a 27% increase in the rent as she has had the flat valued by another agent at that price. They are with a certain agency that I wouldn't trust one bit, and realise this could be a bit of playing around... but it is concerning.
They have renewed once before: First contract was 18 months, and second (the one they are in now) is 12 months. The increase last time was 3.1%.
The contact to ask if they wanted to renew the flat was 6 weeks from the end of the contract, to which they said yes they would.
Are there any legal grounds on increase in rent, notice time to renew etc. Obviously they don't want to be out on the street, in now what is only 5 weeks time.
I haven't seen the contract yet - but anything to look out for would be useful too - thanks in advance.
I have a friend who has been renting a flat since March 2009 through the same agent and on this renewal they are saying the landlady wants a 27% increase in the rent as she has had the flat valued by another agent at that price. They are with a certain agency that I wouldn't trust one bit, and realise this could be a bit of playing around... but it is concerning.
They have renewed once before: First contract was 18 months, and second (the one they are in now) is 12 months. The increase last time was 3.1%.
The contact to ask if they wanted to renew the flat was 6 weeks from the end of the contract, to which they said yes they would.
Are there any legal grounds on increase in rent, notice time to renew etc. Obviously they don't want to be out on the street, in now what is only 5 weeks time.
I haven't seen the contract yet - but anything to look out for would be useful too - thanks in advance.
SimonV8ster said:
In commercial leases theres normally soemthing in there stating that rent can only go up by a certain amount max (say 5%) at renewal.
That's something I have *never* seen in a commercial lease and I've been dealing with them (in some numbers, across a wide range of properties) for nearly 14 years.I've certainly seen that in all of them (where the term has been long enough to have a rent review, anyway)! Once received some heads of terms which specified 'upwards or downwards review' and I was so surprised I rang the client straight away. It was a mistake, should have been upwards only...
Thank you for the above links... should have googled really, but then people here are usually better 
So the things I have gathered, so correct me if I'm wrong:
So the things I have gathered, so correct me if I'm wrong:
- The tenant has yet to be given notice, so even though the fixed-term contract expires on 13th September they are still entitled to live in the place until 2 months after they are given written notice.
- They can increase the rent to whatever they like - though if they make it above the market average you can apply to a board to review
- Also, the increase in rent will break the figure of £25,000 / year and thus change the rental agreement from an Assured Shorthold Tenancy Agreement (AST) to a Standard Tenancy Contract (STC)
- Does the written notice need to be by post, or can it be by email?
- What benefits and disadvantages do a AST have against a STC?
Rents are definitely going up everywhere due a general shortage of available property so the current valuation by the landlord may well be accurate in the current market and, as the landlord, they can charge what they like. Whether they achieve it or not is another matter.
My opinion would be for them to say they don't agree to the rise and see if they get served notice. As a private tenant there is always a risk you could be served notice and be out of a home in 1-2 months so this shouldn't be a surprise but it's certainly a nuisance if it's not your wish to move for sure!
As a landlord whose tenant has just re-signed for a third year, I would prefer to keep a happy tenant paying the same rent rather than go through the risk of having the property empty for a time while you chase a little more money - then paying out another fee to the letting agent as I would warrant all that would suck up any extra money earned.
To put another possibility out there....how did your mates' rent compare to the rest of the market when they moved in? Was it cheaper than everywhere else in which case it's now being brought in line with the market and therefore perhaps they've had a good deal for the time up to now?
My opinion would be for them to say they don't agree to the rise and see if they get served notice. As a private tenant there is always a risk you could be served notice and be out of a home in 1-2 months so this shouldn't be a surprise but it's certainly a nuisance if it's not your wish to move for sure!
As a landlord whose tenant has just re-signed for a third year, I would prefer to keep a happy tenant paying the same rent rather than go through the risk of having the property empty for a time while you chase a little more money - then paying out another fee to the letting agent as I would warrant all that would suck up any extra money earned.
To put another possibility out there....how did your mates' rent compare to the rest of the market when they moved in? Was it cheaper than everywhere else in which case it's now being brought in line with the market and therefore perhaps they've had a good deal for the time up to now?
RacingPete said:
- Also, the increase in rent will break the figure of £25,000 / year and thus change the rental agreement from an Assured Shorthold Tenancy Agreement (AST) to a Standard Tenancy Contract (STC)
nickd01 said:
RacingPete said:
- Also, the increase in rent will break the figure of £25,000 / year and thus change the rental agreement from an Assured Shorthold Tenancy Agreement (AST) to a Standard Tenancy Contract (STC)
E36GUY said:
To put another possibility out there....how did your mates' rent compare to the rest of the market when they moved in? Was it cheaper than everywhere else in which case it's now being brought in line with the market and therefore perhaps they've had a good deal for the time up to now?
It was probably on the bottom side of the market at the time, but then I had a look at rentals at lunch and they vary so much for a 2 bed flat in London in a range of £300/week, so it is pretty pot luck.Shame you can't look up rent the same as sold house prices!
Out of interest our landlord served notice on us on day one of the contract for 12 months down the line, if we failed to contact them (they are rubbish regarding contact) what would have happened?
Our rent went up by 10% this year, but then it hasn't gone up for 5 years so fair enough in my opinion.
Our rent went up by 10% this year, but then it hasn't gone up for 5 years so fair enough in my opinion.
dudleybloke said:
if the landlord gets greedy move out and take the wires and copper pipes with you!
if the landlady takes the piss so should they!
Interesting. So if the landlord maximises the return on his investment in line presumably with current market rates, then you would suggest robbing from him and in the process trashing his house?if the landlady takes the piss so should they!
Appreciate the smiley face (hopefully) indicates you're joking(?), but seriously for a second, how is the landlord 'taking the piss'. From the OP's own admission, the rent was at the lower end of the range when they moved in and is now being reset against a rising market. Unfortunate for the tenant perhaps, but should the landlord just forget about his investment and hold the rent as is until the tenants decide at some stage to move on (which they probably won't do as they are paying 30% below market rate apparently...)?
offshorematt2 said:
dudleybloke said:
if the landlord gets greedy move out and take the wires and copper pipes with you!
if the landlady takes the piss so should they!
Interesting. So if the landlord maximises the return on his investment in line presumably with current market rates, then you would suggest robbing from him and in the process trashing his house?if the landlady takes the piss so should they!
Appreciate the smiley face (hopefully) indicates you're joking(?), but seriously for a second, how is the landlord 'taking the piss'. From the OP's own admission, the rent was at the lower end of the range when they moved in and is now being reset against a rising market. Unfortunate for the tenant perhaps, but should the landlord just forget about his investment and hold the rent as is until the tenants decide at some stage to move on (which they probably won't do as they are paying 30% below market rate apparently...)?
i bet the landlord would be furious if the bank put the mortgage payment up by 30% suddenly.
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