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    • mkoder
    • By mkoder 20th Mar 17, 11:43 AM
    • 7Posts
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    mkoder
    Landlord increasing rent based on RPI
    • #1
    • 20th Mar 17, 11:43 AM
    Landlord increasing rent based on RPI 20th Mar 17 at 11:43 AM
    Hi,

    My landlord wants to increase my rent this year based on RPI...

    "Your landlord has confirmed he is happy for you to renew your tenancy for a further 12 months, he will however be looking for an increase in line with the current RPI rate (2.6%) making the new rent x"

    Is it fair & reasonable to base rent increases on RPI?

    Thanks

    Ed
Page 1
    • theartfullodger
    • By theartfullodger 20th Mar 17, 11:47 AM
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    theartfullodger
    • #2
    • 20th Mar 17, 11:47 AM
    • #2
    • 20th Mar 17, 11:47 AM
    You do not have to agree to any renewal or rent increase. Simply do nothing & tenancy continues, same terms as before, month by month, for ever.

    What if anything does existing tenancy say about rent increases?
    • westernpromise
    • By westernpromise 20th Mar 17, 11:48 AM
    • 2,928 Posts
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    westernpromise
    • #3
    • 20th Mar 17, 11:48 AM
    • #3
    • 20th Mar 17, 11:48 AM
    It is, but this is supposing the rent you are paying now is below market. If the market rent for where you are is lower than what you're paying, you should point this out to your landlord. You could move and pay less, and if he lets that happen, he will incur a void, will likely receive less rent from the next tenant and that tenant may not be as reliable a payer as you.
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    • mkoder
    • By mkoder 20th Mar 17, 11:53 AM
    • 7 Posts
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    mkoder
    • #4
    • 20th Mar 17, 11:53 AM
    • #4
    • 20th Mar 17, 11:53 AM
    This has come about because they say its part of the annual renewal, and...

    "There is a clause in the tenancy agreement outlining that the rent can be increased by the current RPI rate upon renewal of the tenancy." (Thats from the agent)

    I'm checking the tenancy agreement now and can't see any mention of RPI but might not have found it yet.
    • theartfullodger
    • By theartfullodger 20th Mar 17, 11:55 AM
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    theartfullodger
    • #5
    • 20th Mar 17, 11:55 AM
    • #5
    • 20th Mar 17, 11:55 AM
    This has come about because they say its part of the annual renewal, and...

    "There is a clause in the tenancy agreement outlining that the rent can be increased by the current RPI rate upon renewal of the tenancy." (Thats from the agent)

    I'm checking the tenancy agreement now and can't see any mention of RPI but might not have found it yet.
    Originally posted by mkoder
    If it does say RPI increase (and sensibly worded..) then you've agreed to it and are bound by it.

    If it doesn't way RPI increase then you can decline any kind offer of an increase & landlord can try to force increase using "S13" notice and/or evict you, for no reason at all, using a "s21" notice. (Both courtesy Thatcher...)
    • Pixie5740
    • By Pixie5740 20th Mar 17, 11:58 AM
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    Pixie5740
    • #6
    • 20th Mar 17, 11:58 AM
    • #6
    • 20th Mar 17, 11:58 AM
    Annual renewal annual mcschmual. There is no need to sign a new tenancy agreement every time a fixed term ends. Well I say there's no need the only need is to fill the letting agencies coffers but there's no legal reason why you have to do it. You can just start a periodic tenancy. See Ending/Renewing as AST for further information.

    How does the new proposed rent compare to similar rental properties in the area? You are free to accept the new proposed rent, refuse to pay it or negotiate a different amount with your landlord. I don't see what's unfair about using RPI. See Rent Increases for further information.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • G_M
    • By G_M 20th Mar 17, 12:16 PM
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    G_M
    • #7
    • 20th Mar 17, 12:16 PM
    • #7
    • 20th Mar 17, 12:16 PM
    As pixie says above (thanks for linking my posts pixie).

    OP, you can

    * agree & sign
    * negotiate a different rent and sign
    * refuse to sign, move to a periodic tenancy at current rent (but bear in mind loss of security, and risk of S13 rent notice)
    * say/do nothing, move to a periodic tenany at current rent (but bear in mind loss of security, and risk of S13 rent notice)
    * find a cheaper property

    Lots of options with pros & cons.

    But possibly a bit premature asking for advice before checking your current tenancy agreement. Why do people never read what they sign, either before or after........?
    Last edited by G_M; 20-03-2017 at 4:03 PM.
    • mkoder
    • By mkoder 20th Mar 17, 12:26 PM
    • 7 Posts
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    mkoder
    • #8
    • 20th Mar 17, 12:26 PM
    • #8
    • 20th Mar 17, 12:26 PM
    Thanks G_M

    "Why do people never read what they sign, either before or after........?"

    I think sometimes we all struggle to read through long dry documents about things which they don't think (and 99%) of the time aren't relevant / don't impact them. Most of us are busy and tired working people, and reading many pages of small print can be really hard work. I would have scanned through it at the time of signing, but digesting the impact of any of the clauses at that point in time is a whole different matter.

    I wanted to get a general opinion in any case on whether using RPI as a tool to bring in an increase is fair & reasonable, so thanks for everyone's input

    Thanks
    • theartfullodger
    • By theartfullodger 20th Mar 17, 12:46 PM
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    theartfullodger
    • #9
    • 20th Mar 17, 12:46 PM
    • #9
    • 20th Mar 17, 12:46 PM
    ..................I wanted to get a general opinion in any case on whether using RPI as a tool to bring in an increase is fair & reasonable, .........
    Originally posted by mkoder
    There's is it "Fair and reasonable" and then there's is it "Legal". It's certainly legal: However, if it is fair & reasonable is a long, long debate (IMHO, probably not fair 'n reasonable). Just think, when interest rates dropped like a stone (2008 etc...) do you think all those "fair and reasonable" landlords dropped the rents, correspondingly? Well, I didn't, for one.

    Expecting anything regarding property or capitalism to be "fair & reasonable" is likely to lead to disappointment.
    Last edited by theartfullodger; 20-03-2017 at 12:56 PM.
    • mkoder
    • By mkoder 20th Mar 17, 12:52 PM
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    mkoder
    Indeed, well said
    • ThePants999
    • By ThePants999 20th Mar 17, 2:15 PM
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    ThePants999
    G_M has missed an option, which surprises me. You can choose not to sign anything and hence move to a periodic tenancy, but start paying the increased rent anyway. This will significantly reduce the chances of the landlord deciding to evict you, while not committing you to a 12 month tenancy. Of course, if you WANT 12-month security, forget this option
    • G_M
    • By G_M 20th Mar 17, 4:04 PM
    • 40,593 Posts
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    G_M
    You got me. Well spotted!
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