(un)reasonable rent increase?

zas31

For the second year running the agency on behalf of the landlord comes back with a proposal to increase rent by 20% arguing that they "can achieve" that level in the market. What are the strategies to counter that?

The asking price is steep, and the property won't exactly be snapped up, especially in summer.

For instance, the agency has not given me a deadline to come back with a counter offer. So if I keep quiet at what stage can they decide to re-market the property? In that case do I still have the first option on it provided the asking rent is not agreed to by someone else?

Can I somehow effectively challenge the rent requested by the landlord?

I doubt the landlord knows much about what's going on with this property, the agency is known for being extremely aggressive.

Appreciate any advice.

Thanks.

dancingfairy

I'm guessing they can ask for anything they want - whether they can/will get it is another thing entirely.
20% :eek::eek: that is crazy.
What type of tenancy agreement do you have as this could have some bearing on the matter - is it a fixed term contract for a year or is it a rolling contract?
At the end of the day though if they want you out enough they can get you out for any reason whatsoever - although it sounds like it's the agents calling the shots not the landlord. How much are comparable properties going for? You might want to email the letting agents and say thank you for you offer but no thanks - they will then either ignore it or possibly tryand get you out. At this point you probably should try and get in contact with the landlord direct and point out that you have been a good tenant for x years and that the agency are asking for a 20% increase in rent which is excessive and that it would be crazy to loose you- then it's there call.
You could always just bypass the letting agents and go straight for the landlord and point out the same thing.
By the way I am not an expert but that is what I would do - either of the above.
Best of Luck
df

sutters

Definately try and contact the Landlord anyway!

jjlandlord

[assuming AST in England or Wales]

How did they propose that rent increase?

If it is through a new tenancy agreement: you obviously are not obligated to agree to a new agreement and let the tenancy becomes periodic (if it is not already).

If the tenancy is periodic and the agent served you with a section 13 notice, you can appeal to your Rent Assessment Committee if the proposed rent is not in line with the market (check agencies for similar properties in your area)

Obviously, either way your LL may evict you through the section 21 route (2 months notice, then court order for possession)

princeofpounds

Whether it is 20% or 2% is almost irrelevant.

What matters is what the market rate is for that property type. They are claiming that it is much higher. You can go search the listings to prove otherwise.

There is a good chance the agency is doing this without the landlord's full knowledge. The rationale being that they either force your rent up astronomically and come back to the LL with their success (and increased monthly commission) or they 'encourage' you to leave and get another tenant find fee.

The landlord probably knows there is a rent review, he might not be aware of the magnitude they are pushing for. Or he might.

Advice? Find evidence of the market rate for similar properties. Negotiate back hard. Contact LL direct and ask them if they are aware their agency's demands are in danger of leaving them with a void.

zas31

sutters wrote: »

Definately try and contact the Landlord anyway!

I wish I could do that!

The agency has been extremely cunning. Firstly, the address of the landlord that appears on the contract is "c/o Agency address". Apparently legally they can do it without providing the landlord's contact address. Secondly, the name that appears on the contract is nowehere to be found on google, facebook, linkedin, etc...

So, essentially I have no way of contacting the landlord directly. Tried that in the past, and felt like the responses were coming directly from the agency. I strongly suspect the landlord may or may not even exist.

Any thoughts?

DVardysShadow

Well, of course the Landlord must exist. £4 to the landreg on line will get you the deeds which might yield an address. Make sure it is the .gov.uk site and not another one which fronts the same service and adds £10.

jjlandlord

zas31 wrote: »

Firstly, the address of the landlord that appears on the contract is "c/o Agency address". Apparently legally they can do it without providing the landlord's contact address.

Yes for the address at which to serve notices to the landlord (Landlord and Tenant Act 1987 s.47)
But under LTA 1985 s.1 the agent (if you pay the rent to them) must disclose the actual name and address of your landlord within 21 days if you request it in writing.

theartfullodger

Options...

1. Sign new contract agreeing to 20% increase: You get security (for the 6 or 12 months...) & bad taste in mouth, agent gets another 20%. The bullies win again.
2. Decline to respond in any way (or simply write back stating you'll go onto periodic, roll-on, month-by-month). Agent/Landlord can then issue (if not already sent) with S21 notice giving 2 months notice. You don't have to leave until LL gets court order & bailiffs turn up, keep paying old rent, may not get reference (you probably will get ref as LL may want you out quicker..)
3. Negotiate: Ideally with landlord direct (you've two options listed above..)> My son did so when asked for (IIRC) 12% increase.. with polite & sober letter/email (via agent!) stating good tenant, property immaculate, always paid on time, no neighbour's complaints, happy to sign new 12 or 6 month contract. They eventually agreed, zero increase. I suggest negotiation. If you get chucked out & are difficult there will be delays, agents fees etc etc etc, a bit of a void (gap between lettings) and probaly cost 10-20% of next 12 month's rent.. (ie there is a downside for LL/Agent).
4. Counter offer with rent decrease... I like this one, as I suspect the agent will have a seizure...

Cheers!

Artful (Landlord).

zas31

jjlandlord wrote: »

Yes for the address at which to serve notices to the landlord (Landlord and Tenant Act 1987 s.47)
But under LTA 1985 s.1 the agent (if you pay the rent to them) must disclose the actual name and address of your landlord within 21 days if you request it in writing.

Last year I have requested LL's address from the agency in writing, and their legal team have come back declining the request and saying that the "c/o" address meets the requirement of the bylaw.

True/false? If the latter what's my come back?

zas31

DVardysShadow wrote: »

Well, of course the Landlord must exist. £4 to the landreg on line will get you the deeds which might yield an address. Make sure it is the .gov.uk site and not another one which fronts the same service and adds £10.

It's a flat - is the deed still likely to show the LL's address?