Renewal Fee and Rent Increase

socman

Hi all,

Firstly sorry to post another thread I know there are similar - but I couldn't find one where there was a renewal fee (£125) 12th and rent increase (£30pm to £455).

So i've read the others and know my options include not signing and going on to periodic. Question is, do I continue to pay the lower rent or should I start paying the higher (I don't like the increase but accept its the LL decision). Worried that might seem like some sort of acceptance or something??

Last year I bit the bullet with the fee and asked for a 3 month break clause - which seemed a rip off as the contract gave us both the option to terminate after 3 months, so wasn't sure what I paid for! This time I'm in negotiations for a new job so may have to move shortly so a contract of any type isn't an option at the moment.

Thanks in advance

SM

Wyndham

Could you clarify your current rent please? Because £30pm sounds rather wonderful.... but a raise to £455 is rather steep!

socman

lol - sorry I could be clearer! it's a £30 increase from £425. It's not a major increase and first in two years, still under the original asking price and similar properties, just.

Wyndham

If you had to move out, would you need a reference? If so, then I suggest you pay the increase (given it's the first in two years). But others may disagree....

tbs624

How much notice of the rent increase have you been given?

Talk direct to the LL and seek a compromise - you could tell him that you wish to remain at the property under a statutory periodic but that you are willing to pay the increase of £30. An LA usually charges both the T and the LL for renewals so the LL would also avoid that fee.

socman

Hi

Thanks for all the replies.

Notice of rent increase is exactly 2 months (based on dates on letter).

I spoke to LL last time they wanted the fee but while he was very sympathetic he said that he leave all 'that stuff' to the agents. He's admitted to not knowing anything of the legal side so will only do what the LA tells him.

I was thinking about giving it a couple of weeks (when I should have an idea about the new job/need to move) and if i'm staying - just write to the LA copying in the LL simply saying that I'll pay the higher rent but don't want a new contract and therefore don't feel the need to pay. Confirm that I'm happy to go on to a periodic but if they'd rather I didn't ask that they send me the statutory notice.

By the time I get that I should be able to move if required.

One more question - if I do that, do they not have legal power to evict me on the day the contact ends without a Statutory notice? Thats what they indicate will happen in the letter - which is worrying me a little.

Thanks again

SM

socman

Just typed the following letter that I would be tempted to send to the LA and LL. Would be grateful of your opinions on whether it's worth sending,changing or not bothering? Grateful of your time reading and commenting/critiquing

Thanks,

SM x

"Thank you for your letter confirming that my landlord has agreed to extend my lease.

I have noted that the rent will be increased by £30 per month and I am prepared to pay this but would ask that this is conditional on the boiler being replaced as has been under discussion since I first moved in. The current boiler is extremely uneconomical and the last person who came out to repair it took out a switch which now means that if I want hot water I also need to have the heating on full blast – clearly this is not feasible during the summer months. I would suggest that because of the inability to provide hot water without the heating the issue will need to be looked at regardless of whether I remain in tenancy.

I really do not need or desire a further contract and would be much happier to revert to a periodic tenancy. I cannot sign a long term contract as I cannot be certain of how long I will be working in the West Midlands, although it does seem likely to be long term. I note that last year a 3 month break clause was negotiated although I was quite disappointed on reflection that as this clause was applicable to each party the contract was somewhat worthless as it afforded me only one month's more protection than a periodic tenancy would. I did not really think that in that case the fee charged was justified as the work really needn't have happened.

I would therefore ask that I simply revert to a periodic tenancy saving you the hassle of having to complete the paperwork. Alternatively I would be prepared to sign a contract with 3 month break clauses if the fee is waived in full which will provide some income guarantee. If this is not possible, and as I do not want to terminate my tenancy I will continue to pay the rent, with increase where applicable and trust you will provide me with the relevant statutory 2 month notification if you would like me to leave. I will of course offer my full co-operation and comply with any such notification."

Annisele

Do they have the legal power to evict you on the day the contract ends? No, absolutely not. (If they did turn up with some heavies they would be utter idiots; illegal eviction is a criminal offence and the fines can be substantial).

I'd be tempted to be a bit shorter with the letter to the agents - I think that stuff like the 3 month break clause is water under the bridge now. Since you don't actually want a new contact with another break clause, I'd leave it for them to suggest.

My opinion is that so long as your letter tells them:

• You are prepared to pay the £30 per month increase
• You do not wish to sign a new contract, and are happy for your tenancy to continue on a statutory periodic basis

Then it has done its job.

For £30 a month, I'm not sure I'd be willing to risk irritating my landlord over making the rent rise conditional on him fixing something (but then I live in London and your rent sounds amazingly cheap!) However, it's definitely worth reminding him - in writing - that the switch is broken.

tbs624

I agree with Annisele that your letter is wordier than it really needs to be.

I wouldn't comment at all at this stage about how you cannot be sure about long term plans: just say that you'd prefer the tenancy to run on as a stat periodic as provided for by the Housing Act 1988. It's not "reverting" to a stat periodic, as the agreement has not previously had that status.

On your comments about break clauses - it is usual for these to be mutual clauses affording the same notice period from either party.

If your LL has already served you with a valid S21 notice then he would be able to proceed straight to court to seek a repossession order after the expiry of the Fixed Term if you remain in occupation and he would prefer to bring the tenancy to an end. As you seem to be agreeing to the rent increase, and have presumably hitherto been a reliable T, he's probably unlikely to take that route unless the LA pushes him on the issue. LAs do this for two reasons: (a) they don't understand about the statutory provision and (b) they want not only the Renewal fees but also the security of knowing that they have secured ongoing commission for a further set period.

Soniclord

Perhaps I've missed something here? As I've not read that anyone has informed you that if you don't sign a contract then you can't be forced to sign a new contract and you will automatically go onto a periodic tenancy regardless of what the agency says.

I know you don't want to be any trouble or cause any problems, but you have to think about yourself as well and not signing a contract and letting it automatically roll over onto a periodic tenancy is within the law and within your rights.

I hope that helps.

P.S) A periodic tenancy starts the day after your tenancy runs out assuming you will still be in residence at the property you're renting the day after your current tenancy runs out. But if you move out on the last day of your tenancy then you won't be liable for paying any further rent. Just be aware that if you do stay even just a day over your current tenancy you will have to give 1 months notice to leave and they have to give you 2 months notice.

P.P.S) What TBS said still stands though,

tbs624 wrote: »

If your LL has already served you with a valid S21 notice then he would be able to proceed straight to court to seek a repossession order after the expiry of the Fixed Term if you remain in occupation and he would prefer to bring the tenancy to an end.

But I'm sure if you've been a good tenant then your landlord shouldn't have any problems with a periodic tenancy knowing you can't commit to a new long term contract.

ohmsoft

Deleted as duplicated