Landlord wants to up rent by 11% - what to do?

JanCee · 25 July 2012 at 7:00PM

DragonQ wrote: »

Update: Wrote to the landlord yesterday, he called me today. Turns out he hasn't requested a rent increase and never planned on increasing it. Not only has the letting agent gone behind his back (and possibly planned to pocket the entire increase) but they've flat-out lied to us saying that the landlord requested the increase when he didn't even know about it.

The landlord said he was appauled with their behaviour and that he'll write to them to express this. Perhaps we should do the same? Is there an official way to complain about something like this? Regardless, I'm going to send the landlord a photocopy of the letter we got from the letting agent.

The main thing is that he is happy for us to remain on a Statutory Periodic Tenancy at the current price and so are we so yay.

This is just letting agents doing what they do. Bear in mind they make most of their money on new tenancies. Tenants that have a happy stable relationship with their landlords isn't good for their business. Just forget it & get on with your life, don't waste another minute of your time on them.

Same thing happened to my DD, I gave her the same advice.

G_M · 25 July 2012 at 7:19PM

DragonQ wrote: »

Update: Wrote to the landlord yesterday, he called me today. Turns out he hasn't requested a rent increase and never planned on increasing it. Not only has the letting agent gone behind his back (and possibly planned to pocket the entire increase) but they've flat-out lied to us saying that the landlord requested the increase when he didn't even know about it.

The landlord said he was appauled with their behaviour and that he'll write to them to express this. Perhaps we should do the same? Is there an official way to complain about something like this? Regardless, I'm going to send the landlord a photocopy of the letter we got from the letting agent.

The main thing is that he is happy for us to remain on a Statutory Periodic Tenancy at the current price and so are we so yay.

Personally as a LL if my agent did this I would sack them. Either immediately or as soon as I had a replacement ready.

Your LL should either find a new (more trustworthy) agent, or manage the property himself.

But there is little you as a tenant can do about it.

Glad it worked out for you though.

G_M · 25 July 2012 at 7:26PM

How and when the rent on an Assured Shorthold Tenancy can be changed is periodically asked here by both landlords and tenants. It depends on various factors:
(note the following applies in England and Wales)

MUTUAL AGREEMENT
Rent can be raised (or lowered!) at any time, irrespective of the type of tenancy (Fixed Term or Periodic) provided both landlord and tenant agree.

Normally such agreement should be in writing, but note that if, for example, the LL proposes a new rent, and the tenant starts to pay it, then by implication the tenant has accepted (agreed to) the new rent.

DURING THE FIXED TERM
In a Fixed Term tenancy of 12 months or less, it is unusual for there to be any clause allowing the rent to be changed during that FT. However there may be, so read the tenancy agreement.

In a Fixed Term tenancy of over 12 months (eg 2 years) it is common for there to be a clause allowing the rent to be increased, normally after the initial 12 months. Again, read the tenancy agreement.

If there is no such clause, then the rent cannot be increased during the fixed term (except as above by mutual agreement).

Any clause allowing a rent increase must be unambiguous both i) as to when (eg at the end of the first 6 months) and ii) by how much ie :

· a cash amount (eg from £500 pm to £540 pm)
· a percentage (eg 3%)
· an amount linked to a recognised index (eg the CPI/RPI – Consumer/Retail Price Index)

If the wording of the clause is vague, or makes it unclear/ambiguous as to when or how much the increase will be, the clause is invalid. A tenant cannot be presented with a rent increase that was not expected. A vague "The landlord will review the rent after 12 months" is not clear enough to be legally meaningful.

Note that where a variable amount is specified ie the RPI, the index from 2 months preceding the increase should be specified. This allows the landlord time to calculate the exact amount of the new rent, and send it to the tenant a month before it comes into effect. If the index from the same month as the date of the increase is used, the tenant would have no clear advance notice of the precise amount of the increase, so could not be made to pay it.

AT THE END OF THE FIXED TERM
Often a landlord (or his agent) will offer a new Fixed Term contract. This can be at a new rent, and can be for any amount they wish. However, the tenant is under no obligation to agree. His options are:

agree and sign the new FT contract at the new rent or
negotiate and agree a different amount, and sign this amended FT contract or
move to a Statutory Periodic Tenancy (see this post here) at the same rent as before
Find a cheaper property and move out

However, be aware that once you move to a SPT your security is reduced, and you can be given a S21 Notice (1st step to ending the tenancy) if the landlord thinks he can get a better paying tenant (and believes the higher rent will offset the costs of eviction and new tenant-find).

DURING A PERIODIC TENANCY
Most Periodic tenancies (sometimes known as ‘rolling’ or ‘monthly’ tenancies) are Statutory Periodic Tenancies, and follow on automatically at the end of a Fixed Term if no new contract is signed. The rent, and all other terms, are initially exactly as during the preceding FT.

As stated earlier, the rent can be changed at any time by mutual consent, however other than this the original Tenancy Agreement must be checked:

1) If there is a clause in the original tenancy agreement specifying how and when the rent can be increased, the landlord can only change the rent in accordance with that clause. As explained above, this must be clear, both as to when and by how much.

Example: a Fixed Term tenancy of 6 months has a clause stating that at each anniversary of the start of the tenancy, the rent may be increased by 3%. At the end of the initial 6 months, the tenancy becomes a SPT, still at the original rent. 6 months later (ie 12 months from the start of the original tenancy) the rent can be increased by 3%.

The tenant must be given advance written notice of this, usually of a full Tenancy Period. This is usually a month though precise dates are important - see this post for explanation of ‘Tenancy Period’. (annual or weekly tenancies have different notice periods).

2) If there is no clause in the original tenancy agreement relating to rent increases, the landlord must issue a Section 13 Notice (see below). The rent can be increased by any amount, but as above, the S13 increase cannot take effect until (usually) a full Tenancy Period has passed. A S13 Notice must be in the prescribed form. A casual email, or conversation, is not a substitute (unless the tenant agrees - see 'mutual consent' above).

Note that a S13 Notice can be challenged by a tenant, and referred to the Rent Assessment Committee, which may confirm the new rent, reduce it, or increase it, in line with local market rents. But note also that as the tenancy is periodic, if the landlord is unhappy with the RAC’s ruling (or indeed, unhappy with the tenant choosing to refer the rent to the RAC!) he may simply give the tenant (S21) notice to end the tenancy (see below).

REFERENCES

Housing Act 1988 section 13

Section 13 Notice (example) Notice Of Rent Increase For Section 13 (MS Word format)

Written demands (for rent etc: LL's actual address needed) Beitov Properties Ltd v Martin

Ending/Renewing an AST (what happens when the Fixed Term ends?)(What is a Periodic Tenancy?)(How can a LL remove a tenant?)(How can a tenant end a tenancy?)

Repossession (What happens if a landlord's mortgage lender repossesses the property?)

New Landlords (general information for new or prospective landlords)

DragonQ · 6 September 2012 at 2:09PM

The letting agent seems extremely panicky about us signing a renewal. It would have to be sent to them today for it to arrive at their offices before our current contract expires. They claim that the landlord wants us to sign a new contract, even though he told me two months ago that he was happy to continue on a Statutory Periodic Tenancy. The letting agent claims to have asked him earlier this week, even though I was unable to get through to him on the same phone number on the same day (or since), hmmmmm....

Basically they're adamant that the renewal is a rolling contract despite it extending the tenancy period by 12 months, because there are "break clauses". After I pointed out there were no break clauses they claimed we were missing a page and have sent a third contract to us.

I pointed out that if it's a rolling contract then what is the point in signing it when we'd move to a Statutory Period Tenancy anyway. Their only response was "some landlords are happy with a Statutory Period Tenancy but others insist contracts are signed and yours wants a contract".

I've made it clear to them that we're not signing anything without speaking to the landlord first (because I don't believe a word of this) and if I can't speak to him before our current contract expires then tough.

BitterAndTwisted · 6 September 2012 at 2:19PM

Quite right! If the landlord has indeed changed their mind I'm assuming that they would have let you know. Just prevaricate or just not respond at all about signing a new AST until your current fixed-term has ended. The agent is desperate for their "renewal fee" from you and very possibly from the landlord as well and they're not going to get it, are they?

DragonQ · 6 September 2012 at 2:31PM

BitterAndTwisted wrote: »

Quite right! If the landlord has indeed changed their mind I'm assuming that they would have let you know. Just prevaricate or just not respond at all about signing a new AST until your current fixed-term has ended. The agent is desperate for their "renewal fee" from you and very possibly from the landlord as well and they're not going to get it, are they?

:rotfl:

The only way we'd consider renewing the contract is if:

- The landlord wants us to.
- The landlord still wants us to after we explain it's pointless due to the Statutory Period Tenancy situation.
- The landlord still wants us to after we say we don't want to sign it, and says he'd prefer replacement tenants if we're unwilling to sign.

I don't rate their chances very highly.

UnitedSum · 6 September 2012 at 2:38PM

I truly believe stupid letting agents are so plentiful they grow on trees.

Yes, I know this comment is entirely my opinion, but am I alone? Doubt it.

Good for you, OP. Stand your ground!:T

DragonQ · 6 September 2012 at 6:49PM

Landlord said that he thought we had to sign a contract to move to a Statutory Periodic Tenancy. Once I explained that wasn't the case, he said he was fine with us not signing anything.

Also, he did not get a call from the letting agent at all, as I suspected. Lying *******s.

pinkshoes · 6 September 2012 at 7:53PM

The LA probably told the LL that you had to sign something else to go onto a periodic tenancy! (And thus the LA get money!)

Naf · 6 September 2012 at 8:10PM

I've had this on my mind as my AST expires in 3 days. Surprised I haven't heard anything yet - assuming (and hoping) that the LL is happy with a periodic tenancy continuing.
I'm expecting them/him to try to up my rent from £525 to £575 in the near future. £575 was the advertised price right up until the morning I called to enquire, when they'd dropped it by £50. Naturally I was chuffed.
Perhaps he'll leave it until we get the free solar panels & cavity wall insulation, then try to up it even further...
Anyway, very useful advice on this thread; and a reminder not to trust the LA's word at face value.

Landlord wants to up rent by 11% - what to do?

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