Letter from LA - new contract

fluffmagnet

Hi,
We, (my fiance & I), have received a letter from our LA stating that we are going to have a rent increase (fair enough). The letter is dated 14th April & they are saying the rent increase is due from 30th April.
I'm just checking this is ok - I thought the LL/LA had to give you a months notice on rent increase?

Also, they included with the letter a 6 month contract asking us to sign & return with a cheque for £25.00 for their admin fee, which they have "decided to greatly reduce from £90.00" - we moved in 3 years ago on a 6 month contract and was told by them after the 6 months we would be on a rolling contract with no additional fees. Can they make us sign the contract & pay the admin fee? I've no issue with the rent going up (well, it would be nice to stay at the level it is!), but don't want to be tied into another contract & have to pay for the priveledge to be tied in.

Thanks!

silvercar

When a contract ends there are two options if you stay. Either the tenancy becomes periodic or you enter another fixed term contract.

For a fixed term contract you would sign another agreement and the rent would be as detailed in the contract. So you could have a rent increase with little notice.

If you don't sign a new contract, the old tenancy becomes periodic if you stay beyond the end of its fixed term. This happens either because the landlord allows this to happen or because you don't sign another fixed term contract. In this case the landlord would have to serve you a rent increase notice. I think it is a section 13 notice. You are entitled to a month's notice and the increase has to be at least a year after the last increase.

So the net result is that you don't have to accept the rent increase if you are not signing the contract. The problem is that not accepting the rent increase and not signing a new contract are both things which could make the landlord decide to serve you a section 21 notice to leave.

poppysarah

Write a letter by return "Thanks but we'd like to go on a periodic tenancy. Here's my invoice to you for taking the time to read this letter"

fluffmagnet

Thanks for the replies

I've just re-read the letter and it says at the bottom "If the agreement is not returned within 7 days of the date of this letter, the admin fee will be reverted to £90"
**grumbles**

G_M

They cannot make you sign the contract, therefore cannot charge you £25 or £90.

If you simply ignore the letter, you will continue as a periodic tenant. The landlord will then have 3 options:
1) do nothing. Continue to rent to you at current rent on a periodic tenancy
2) Issue a S13 rent increase Notice
3) Issue you with 2 months notice to quit

My advice would be to discuss with the landlord (not the agents - they just want their £25/£90 !

fluffmagnet

thanks.

If we were served with the S13 for not signing the agreement, would this affect our chances of renting in the future? (future ll/la contacting previous ll/la for reference?)

x

pinkshoes

fluffmagnet wrote: »

thanks.

If we were served with the S13 for not signing the agreement, would this affect our chances of renting in the future? (future ll/la contacting previous ll/la for reference?)

x

Nope! The S13 is the correct way for the LL to get a rent increase. The way it has currently been done is wrong, so should just be ignored.

Do not pay the letting agent's fee either! They're just pushing their luck and sound rubbish!

fluffmagnet

Thanks for the advice guys

x