Tenancy 'Renewal Fee'

ollyver27

CKhalvashi wrote: »

It's possible.

If you're looking at a long term let, tell the LL this. I've knocked around £50 a month (4%) from a rental price knowing that I'm not going to have voids and I'll have tenants that will look after the property. The same tenants are still living in the property 7 years later.

If the property was empty for one month a year, it would cost me £1200 each year, so to offer £600 from the rent each year is the best solution all round.

CK

Thank you! But just found this, does this change anything (we have been there for 6 months):

2.6 If the tenancy is continued as a Statutory Periodic Tenancy then the Rent will increase annually
on the anniversary of the 1st Rent due date by the amount stated for the annual increase in the
Index of Retail Prices (all items) as quoted for the month immediately prior to the anniversary of
the 1s Rent due date in any given year. This is without prejudice to the right of the Landlord to
seek to end this agreement and recover possession of the Property at the end of the Term;
pursuant to Section 21 of the Housing Act 1988 (or any amendments thereof). The Rent will not
be reduced below the figure stated at page 2 of this agreement at anytime.

Thanks

CKhalvashi

For every £100 a month you're paying, you'll be looking at a £2.70 increase (based on last month).

Rates here are up around 20% in the last year, although I'm in a unique area (both Stansted Airport and London within 30 minutes), so you need to look at what is around.

CK

G_M

ollyver27 wrote: »

Thanks for all your advice.

One more question. If we were to go with the send letter to LL option stating we want periodic and don't want to pay the fee - could we then get an email/letter back saying 'fine - but the rent has now gone up by £100' or something similar?!

Thanks again,

Yes, but

a) unless you respond agreeing to it, this is simply an offer. You have to accept before the rent rise becomes binding
b) if you ignore the email, sign nothing, stay one day beyond the fixed term, you will have a SPT at the original rent

The LL then has to follow correct procedure to increase the rent if he chooses. See:

Rent increases (how and when can rent be changed)

ollyver27

G_M wrote: »

Yes, but

a) unless you respond agreeing to it, this is simply an offer. You have to accept before the rent rise becomes binding
b) if you ignore the email, sign nothing, stay one day beyond the fixed term, you will have a SPT at the original rent

The LL then has to follow correct procedure to increase the rent if he chooses. See:

Rent increases (how and when can rent be changed)

Thank you. So given your example....

1) If there is a clause in the original tenancy agreement specifying how and when the rent can be increased, the landlord can only change the rent in accordance with that clause. As explained above, this must be clear, both as to when and by how much.

Example: a Fixed Term tenancy of 6 months has a clause stating that at each anniversary of the start of the tenancy, the rent may be increased by 3%. At the end of the initial 6 months, the tenancy becomes a SPT, still at the original rent. 6 months later (ie 12 months from the start of the original tenancy) the rent can be increased by 3%.

The tenant must be given advance written notice of this, usually of a full Tenancy Period. This is usually a month though precise dates are important - see this post for explanation of ‘Tenancy Period’. (annual or weekly tenancies have different notice periods).

...is extremely similar to mine...

2.6 If the tenancy is continued as a Statutory Periodic Tenancy then the Rent will increase annually
on the anniversary of the 1st Rent due date by the amount stated for the annual increase in the
Index of Retail Prices (all items) as quoted for the month immediately prior to the anniversary of
the 1s Rent due date in any given year. This is without prejudice to the right of the Landlord to
seek to end this agreement and recover possession of the Property at the end of the Term;
pursuant to Section 21 of the Housing Act 1988 (or any amendments thereof). The Rent will not
be reduced below the figure stated at page 2 of this agreement at anytime.

...I presume they won't be able to do this at this period (only after another 6 months)?

To wrap this up - would you:

A.) Suggest I send a letter to the landlord saying we are happy to either stay on another 6months or go onto a periodic but are unhappy to pay the fee, and let the letting agent know this has been sent (as I will have to buy this info from the landregistry - and I believe there won't be an email address)

B.) Ignore original email from original forum post, and auto go onto a periodic (just unkeen that this may upset and lead to an S21 - don't really want to move in this timespan to be honest - don't have the capital for another deposit and upfront rent etc.)

C.) Pay the £100 to avoid complications and put my mind at rest, whilst fueling my hatred for this completely out-dated letting model who charge what they want under the scaremongering guise of quasi-law contracts

ollyver27

And sorry, just to clarify - could they tell us to move out in February as per the original email, or would they still need to give 2 months notice? I'm a bit uneasy in challenging if they can just lob us out! Or even 2 months would be a pain like I've said earlier due to lack of funds. Would be easier to just pay the £100 each.

We live in Manchester which is quite high in demand, and don't want them to just think - 'oh well, we'll put an advert out and find a new tenant in a couple of days'

theartfullodger

They can tell you to move out whenever they like: However unless you agree to go you cannot be forced out except after the expiry of a valid notice, then landlord applied to court for possession order, then gets date, you ignore it, landlord applies to get bailiffs round, you ask for more time, eventually (ultimately..) bailiffs arrive & you leave...

Usually a month or several after expiry of valid s21.

ollyver27

theartfullodger wrote: »

They can tell you to move out whenever they like: However unless you agree to go you cannot be forced out except after the expiry of a valid notice, then landlord applied to court for possession order, then gets date, you ignore it, landlord applies to get bailiffs round, you ask for more time, eventually (ultimately..) bailiffs arrive & you leave...

Usually a month or several after expiry of valid s21.

Thanks for this answer.

This assumes S21 has already been served right?

And would the approach of court possession order etc. A.) effect my credit rating, B.) effect my ability to get a good reference for when I want to move to another rental property?

Sorry for all the questions, I obviously just need to judge my actions to this very carefully to avoid negative consequences for myself!

whalster

CKhalvashi wrote: »

It will be with the paperwork.

I issue as a matter of course, and have always been happy for my tenants to go onto periodic on condition bills are paid on time; they're sometimes issued as 'worst case' scenario. I don't deal with an agency, however.

If they have issued before the deposit has been protected then the s21 is invalid , the OP should check this too.

Many landlords in the past issued on tenancy signing but this will not hold up

ollyver27

whalster wrote: »

If they have issued before the deposit has been protected then the s21 is invalid , the OP should check this too.

Many landlords in the past issued on tenancy signing but this will not hold up

I'm pretty sure I have never been issued an S21, but will have to check...

ollyver27

Update!

I looked into whether they had served me a Section 21, and it appears they have. However, at the bottom of the photocopy, it does say...

'Expiry date: This notice expires on: 21st December 2013'

It was served on the 27th June 2013.

How does this affect the situation?

I've also just emailed the letting agent this:

Hey <their name>,

We don’t need any of the terms and conditions in the existing tenancy agreement to change, so we're happy for the tenancy to become periodic, avoiding any additional labour on your behalf and thus negating the £200 fee. Alternatively, we are happy to sign another 6 month contract, but again don't need any terms changing and thus no fee.

I’m happy to discuss this directly with the landlord if there are any problems with this arrangement.

Kind Regards
<my name>


Thanks for all your help so far