Tenancy Renewal - A few Questions

talj

Hi I have just stumbled across this forum and as there seems to be a lot of knowledge here in these forums I thought I would ask a few questions.

I live in the North East of England, I rent a 1 bedroom flat paying £550.00 pcm excluding all bills. My tenancy is due for renewal at the start of May and my landlord has advised me he will be visiting to inspect the flat tomorrow (saturday) morning.

He has advised me that he is more than happy for me to continue renting the property and will be happy to renew my contract BUT in his words...

"I plan to continue to let the flat after your tenancy finishes in May. If you are happy to continue to stay there, I am happy to extend the agreement. However I would like to review the monthly rent in line with inflation. I am sure you are aware that interest rate has gone up twice or more within the year"

I asked him how much he intends to raise the rental amount and he refused to tell me, all he would say is that we will discuss it tomorrow.

I have looked around and I am more than confident that the price I pay for my flat is already at the top end of the scale for this type of property. I found at least 50+ flats just in and around the particular area I live in all at £550.00 or LESS. So my questions...

1. Should I accept any increase in rental? If so, how much of an increase is reasonable?

2. As the new tenancy deposit law has come in to force, when I renew my contract am I allowed to insist my landlord puts my deposit into the tenancy deposit scheme?

Thanks for reading and I look forward to hearing from you all.

litaus

Yes, if he wants to change anything rather than just let it turn over into a periodic tenancy, then he must by law protec your deposit. I'd make sure that anything he sayd tomorrow, you answer with ' I need time to think about that. Could you email/write that out for me as I have a terrible memory'. He might try to strongarm you, but you do not have an agreement for increased rent until you have it in writing and it must be the rent which is after the next month's rent (or something like that) Too busy to look up the references right now as it's kid's bathtime, but this happened to me in an old property, so if you ask then I'll look them up later on.

Melissa177

If you're a good tennant, it should be in his interest to keep you and not have the property vacant.

You might say "I've seen other properties for the same price which are better. What are you going to offer to keep me here?" or words to that effect. Maybe print out some adverts and leave them on the table, as if you're considering your options. This might work, it might not!

Also, are the other properties for 550 pcm in a similar location? Location location location is very important - you might be paying more because you are in a great location (ie, close to transport, amenities, etc).

550 pcm seems quite a lot for a 1 bed flat in NE England - is in new/special/have lovely views? I paid that in London for a two bed houseshare (550 each) until recently!

talj

Hi, thank you both for your replies.

I live right by the river in Leeds City Centre, there are flats all along the river with more being built all the time. All the flats I have been looking at are in and around the same location I am in so as far as I can see any rent increase at all isn't worth it as there are loads of other places for exactly the same or less.

I think basically my landlord thinks increasing the rent is just what he can do as my tenancy is up for renewal!

My main problem is due to serious ill health I am currently housebound and just recently been registered disabled. I really don't want to have to move home, I don't want to argue over prices, I just want to carry on living my life as best I can in the place I have got used to....the place that has all the adaptations fitted for me by occupational therapy.

I just don't want to give him the idea that I NEED to stay here.

I will definitely say it is something I have to think about. My agreement isn't due for renewal until 4th May so I have time to think about it.

If I am right, if we can't agree on renewing the contract then I get 2 months to sort something else out and move out. I read this in a basic law book I have, I hope this is right?

Gorgeous_George

2.5% is a reasonable increase - that's whjat my pay rise was anyway. This would see the LL earn an extra £165 over the year or £99 for a higher rate tax payer. About the same as a week's void.

Tell him you would like to stay but cannot afford any more. If he still insists on an increase, I would suggest £565 is plenty but be prepared to move on if he needs a lot more.

That said, I'm increasing my rent by 21% (compared to Mar 06) to bring it almost in-line with market values. This will be on a change of tenant BTW.

I might make a profit in 2007/2008.



GG

talj

Many thanks GC!

I tried the line 'I am not willing to stretch my budget to accomodate an over the top rent increase' to which he emailed me and said he is sure we can sort something out! I find it difficult to stand up for myself but I am pleased I posted here!

As my rent is already well in line with that of most other properties of its type in this area I think your suggestions are more than adequate.

I can understand when a landlord needs to bring things in line with 'the going rate' so best of luck to you in gaining a profit in the future!

Gorgeous_George wrote: »

2.5% is a reasonable increase - that's whjat my pay rise was anyway. This would see the LL earn an extra £165 over the year or £99 for a higher rate tax payer. About the same as a week's void.

Tell him you would like to stay but cannot afford any more. If he still insists on an increase, I would suggest £565 is plenty but be prepared to move on if he needs a lot more.

That said, I'm increasing my rent by 21% (compared to Mar 06) to bring it almost in-line with market values. This will be on a change of tenant BTW.

I might make a profit in 2007/2008.



GG

Gorgeous_George

My £420 will be for a 4 bedroomed house in the NE. It comes with the offer of GCH if required.



S

thesaint

Just for information, Leeds isn't in the North East of England.

Melissa177

thesaint wrote: »

Just for information, Leeds isn't in the North East of England.

Hah, I was thinking the same thing - you'd get in trouble in Newcastle for saying things like that!

litaus

When you decide whether you need to move or not, don't forget to factor in moving costs, finding a new deposit, adapting the new place, the actual move, and the hassle factor of connecting phone, bb, tv etc etc. I think if you're paying the going rate then there is no reason (or motivation) for him to up the rent and look for another tenant which is a hassle and a cost, however you should also bear in mind that many people will consider themselves backed into a corner and will cut off their nose order to spite their face - we've moved out of one property for that very reason (very stupid, cost the LL over £3000 which they tried recovering some of from our deposit, which we're now sueing them for, with a very good case for winning due to us taking photos on moving in and out).

I hope he's reasonable, post us what happens, I'm a huge voyeur of other people's lives;) adn I assume plenty of others are too.

talj

Sorry guys, in my attempt to stay 'anonymous' I said North East but I quickly gave that up and told you all where I was anyway!

GC - where in the North East is the house!?!