rent advice

frankie1star

My daughter has just been informed her rent will increase from £595 to £705 on renewal of the lease, could someone advise is this allowed please?

The agents want to also charge £150 admin fee, and they know how much she earns, so they she cant afford any of it

clutton_2

in what way was she informed.. there is a legally correct protocol for rent increases....

frankie1star

she received it by email

G_M

If you mean her current Fixed Term tenancy is ending, and she has been offerred a new tenancy at a new rent - yes it is legal. But it is just an offer. She can decline. Her options then are

1) move out when the current fixed term ends
2) negotiate on the rent and then sign a new Fixed Term tenancy at whatever rent is agreed
3) stay (one day) beyond the current Fixed term and automatically move to a Periodic (monthly) tenancy at the current rent and current terms

If she chooses 3), then the LL has 3 options:
1) do nothing and allow her to remain on a monthly Periodic Tenancy at the old rent
2) evict her, using a 2 month S21 Notice (and then have a month or two with NO rent + re-marketing costs)
3) increase the rent on her Periodic Tenancy using the precribed forms (which cannot be done till the Periodic Tenancy commences)

BitterAndTwisted

One way to not pay the increased rent is to not sign this renewal. If the landlord is determined to see more rent they will get it eventually. All that's unknown is how long it will take for them to end her tenancy and find a new one. Or to issue the correct documentation. There are ways and means to ensure that they can't get a new tenant lined up immediately your daughter leaves. This is a threat I might consider leaving for another day. However, all they need is one month of the property being empty to wipe out six month's worth of the rent-increase.

frankie1star

this is the email she received

frankie1star wrote: »

Your tenancy is due to expire on 14th February 2012.

If you wish to extend your tenancy, your rent will increase by £50 per week, bringing your monthly rental to £1408.33. This may sound a huge increase but actually we are advised that the current rent for similar properties are £340 - £345 per week.

Please note, as per your contract, there is an administration fee of £150 payable for the renewal.

Could you please advise as soon as possible, as your deposit will need to be re-registered with ‘My Deposits’, your landlords tenancy deposit scheme, as required by law.

Could you please confirm by email whether or not you wish to renew your tenancy for another year.

BitterAndTwisted

That administration charge is usurous and does not reflect the work required to issue a new contract. Five minutes in Word and press "Go" on the printer. Then another five minutes to change their records on the computer system.

The deposit does not need to be re-registered with MyDeposits. That is a lie.

I'm assuming from the numbers quoted that your daughter shares this property with another person. The increase is nearly 19%.

Your daughter needs to do some sensible research to check whether this new rent is really equivalent to other similar properties in the same area. If it isn't they should consider voting with their feet.

Your daughter cannot be compelled to sign this new agreement. She can decide not to sign it and wait for either a Section 13 Notice to increase the rent or a Section 21 Notice signifying that the landlord wishes to seek repossession.

paddyrg

Move? Negotiate?

frankie1star

yes she shares with another and this part of the email she replied with

'Thank you for letting me know. This works out as 704 each a month which I find completely ridiculous. This is a massive increase and comparatively for the property on the top floor who may £630 each a month!

I literally cannot afford this, and I am so disappointed that this is how you operate. How can you legitamtely justify this when the flat is not in the best condition and my room is freezing cold and the D flat pay a cheaper amount?!'

If it hadnt been so difficult for her to find something, she would move, its in London

BitterAndTwisted wrote: »

That administration charge is usurous and does not reflect the work required to issue a new contract. Five minutes in Word and press "Go" on the printer. Then another five minutes to change their records on the computer system.

The deposit does not need to be re-registered with MyDeposits. That is a lie.

I'm assuming from the numbers quoted that your daughter shares this property with another person. The increase is nearly 19%.

Your daughter needs to do some sensible research to check whether this new rent is really equivalent to other similar properties in the same area. If it isn't they should consider voting with their feet.

Your daughter cannot be compelled to sign this new agreement. She can decide not to sign it and wait for either a Section 13 Notice to increase the rent or a Section 21 Notice signifying that the landlord wishes to seek repossession.

adg1

Write back and reject the increase. If they are good tenants and pay on time etc etc then they are worth keeping from a landlords point of view. A new tenant may pay no rent, be a nightmare etc etc AND there are remarketing costs involved.

Use rightmove.co.uk etc to find comparables to your property and use them to guide any increase.

The do not need to re-register any deposit with mydeposits.co.uk. That is wrong.

Depending entirely on where the property is and when it was rented, the rent will have increased. Rents here (SW London EDIT - cross post - In London rents have risen a long way) have gone up between 15 and 20% in the past 12-18 months. Other places will have risen but far less markedly I would think.

Can you not contact your landlord and ask what they want? They may be happy for you to stay on a statutory periodic with no changes and all this may be an agent (bearing in mind they lied on their email) trying to get £150 from your daughter and renewal commission from the landlord for next to no work.

Plus £150 renewal fees is high.

BitterAndTwisted

They have to negotiate or move. For the time being they should not respond to any further communication from the agent or the landlord.

If there is another flat in the building for which the rent is lower they should be able to find other properties being offered at a similar rent which they could use as justification for not having the rent raised.

They could hint that they may not allow any viewings by prospective new tenants thereby guaranteeing a void between tenancies One month of a void is equal to six month's-worth of the rent-increase.