Rent increase?

rag31

Hi there, we have lived in our rented house for 10 months now (middle of July is a year) and have just had a letter from our landlord proposing a 3% rent increase - taking the monthly rent from £795 up to £818.

We can't afford this and I'm wondering whether we can say no, and if so how can we word it and what is the likelihood of them booting us out.

We spent a couple of years searching for this house and the deciding factor was that it is owned by a university that has owned it for 700 years (they own a few thousand properties) and we thought it would give us stability for the children. However if they up the rent every year by 3% then we can't afford it.

We are both self employed and our income isn't going up by this amount. Am just a bit depressed now and advice on next steps would be welcome.

Thanks,
Becky

pawpurrs

If your wanting the house longterm and are willing to sign another tennancy agreement, then speak to them, in a lot of cases they may well be happy for the rent to stay the same, if you are good tennants. Also do some research to what comparable properties rent for, rents are dropping in a lot of areas as more and more properties are available for rent, if thats the case in your area, then you have a good arguement for the rent not to be increased.

wheresmydoshat

refuse it, and ask them to reconsider.

although they wouldn't struggle to rent it out again, the landlord could probably do without the hassle.

chickmug

It is a little like selling and playing the silly game of poker when trying to haggle the price.

However I do know one case where a couple had 'long term' rented with low'ish annual increases in line with inflation and it reached a point where they were advised of the new increase - bit higher than before - and they though enough is enough. So they started looking around, and found, somewhere cheaper.

So they gave notice and surprise surprise the LL by passed the LA and rang them direct to say sorry to hear they were leaving and asked why and was told.

A few hours later the couple had a email from the LL offering to peg the current price and hold it for a minimum 18 months he wouldn't want the hassle and stress of new unknown tenants. He also offered to carry out a variety of outststanding jobs within a week or two.

It was a modern 4 bedroomed place £850 pm but due to go up to £900 but the couple did leave and have found a smaller and, in their words, a lot nicer place for £650 and seem very happy.

But it all boils down to can you play this silly game of poker, with your life, and risk upsetting the LA and/or LA.

silvercar

Interesting to see how they negotiate the rent. It may be that owning so many properties means they won't negotiate on individual rents.

Do you have a good landlord that complies with all legislation and attends to maintenance quickly? If so that together with the cost and hassle of moving may mean it would be better to stay.

tbs624

I think the first two or three posters maybe didn't pick up on the fact that this is a University owned property.

Obviously if they had a month's void on the property they would quickly lose the equivalent of a year's increase plus some, so you could try negotiation but you will find it harder to get the result you want with them that you would with a private LL or a LA.

The decision on % rent increases for their properties tends to apply across the whole/most of their property portfolio: they have a specific responsibility to get the best return. Did your tenancy agreement have any specific rent increase mechanism?

tbs624

silvercar wrote: »

Do you have a good landlord that complies with all legislation and attends to maintenance quickly?

A Uni owned property is more likely than most to comply with all legislation, not so sure about prompt maintenance, although they do tend to have a specific repairs team.

silvercar wrote: »

... If so that together with the cost and hassle of moving may mean it would be better to stay.

I think that's something that is often forgotten when considering rent increases.The equivalent of £23 a month for the next year could soon be swallowed up in the costs of your time hunting for somewhere else, credit check/admin fees, removal firm etc

princeofpounds

You just write a nice letter back saying that you believe they should reconsider and propose flat rent (or +1% or whatever).

You justify it using any of the following points as appropriate:

1) They will likely end up with a void if you leave which will cost them more than the increase would gain them.

2) You can rent better for the same price elsewhere (attach examples)

3) You are good tenants and wishing to sign on for an extended period

4) They are trying to raise the rent when the RPI index (inflation including housing costs, unlike CPI) is actually negative (-0.4%, but look it up) and your wage growth is flat.

You then wait to see what they come back with. They will either try to negotiate in the middle, agree, or serve you notice to leave at the end of your fixed term.

You then decide to accept, or refuse and leave at the appropriate time.

It's a totally commercial negotiation and this will be a standard letter. They have done nothing wrong by asking for it and you have done nothing wrong by asking them to reconsider.

One last question - you are not a student in halls are you? This just happen to be a normal tenancy? Student halls are under different lettings rules.

Geenie

princeofpounds wrote: »

One last question - you are not a student in halls are you? This just happen to be a normal tenancy? Student halls are under different lettings rules.

They have kids!! It's a house.

rag31

Thanks for all your advice.

700 years ago a landowner gave our whole village and surrounding land to the University which is about 200 miles away. So all the farms, cottages etc belong to it (as a bit of background).

Ours is a 4 bed house, had been empty for a number of months before we moved in and has had a turnover of tenants every 6 months for the last 4 or 5 years according to the neighbours. The garden has taken us nearly a year to get semi under control (large garden) as it was totally overgrown with 12ft high nettles and brambles. My dh is a plumber and has refitted the bathroom for cost of parts only, and sorted out a leak at the weekend for free. We have also professionally cleaned the carpets in an attempt to get them sorted, and cleared a flea infestation! So we feel we have invested a lot in the property so far.

Maintanance wise, they are extremely slow and the house is pretty shoddy. Although they had painted everything magnolia when we moved in the carpets are disgusting and some windows rotten and drafty.

The tenancy agreement is a normal one, with no mention of how and when any rises would be implemented. We had every intention of staying here for at least the next 5 years. We can afford the rent as it is - just! - my dh has had a downturn in his work so we are not able to afford a rise.

A 3% rise every year for the next 5 years would equal an extra £1550 odd pounds so it would be better to know now and move but then I suppose we still wouldn't know if they would hike the rent. Pah. :-(

Becky

rumbaba

Like all thngs rents do tend to go up every year by a smallish amount. Just as food, utilities, council tax goes up - so does rent unfortunately. It's actually better to have small annual increses than sudden hefty one every 2 years.

Inflation has risen under Labour - so rents are bound to rise too. Yes, you may find more places to rent than you did before this recession, and competition will always help keep rents attractive, but they'll still rise I'm afraid, and when things get back to normal again experts say they will start to really rise considerably. So a 3% rise isn't that bad in my opinion. I've heard of 10% rises annually!

It makes you sick to think many people now are paying LESS for their mortgage repayments than they are for rent! I have a friend who is renting a 2 bed house and pays £975 a month rent, and her neighbour in the EXACT SAME house next door (Victorian Terrace) pays just £480 mortgage!!! Grrrr! Makes my blood boil!