Massive Rent Increase - help with letter?

MrsWassire

Can anyone help (or point me to where can help)?

We have been renting since Dec 2009. We just got a letter today saying that our rent is going up as of May. It's going up by over 13%. This is totally unaffordable for us as hubby hasn't had a pay increase for the last 2 years!

I checked the contract and it says:

"In the event of this lease continuing for more than twelve months by tacit relocation as hereinbefore provided for, the Landlord will be entitled to review the rent on an annual basis on each anniversary of the commencement of the lease. The said review shall be in an upwards direction and be in accordance with the increase in the Retail Prices Index over that of the previous year. Two months notice in writing shall be given to the Tenant of any such increase."

So they've given us the 2mos notice but the rest is totally not right! Our lease is dated December 10th so the way I read this, they can only review the rent on the anniversary of the lease? And also, they cannot increase it by 13% when the RPI for last year was 3.05%?

I want to know how to reply to them to basically say, sorry but no can do! We want to stay here but we can't afford that increase. Not all at once anyway. If they put it up year by year it would be different. Help?

PS I'm in Scotland.

ACG

Send them a copy of the contract highlighting the RPI bit.
Send a letter saying please see attached contract. The maximum rent increase you would expect to see is x.xx%.

There is no point beating around the bush, but at the same time there is no need to be rude so just be straight to the point.

MrsWassire

"Dear X

Please find attached a copy of our rental contract. I have highlighted clause 18 which regards rent increases.

Please note that the RPI for the previous year was 3.05%, which would equate to a rent increase of £xx. Also please note the stipulation that rent can only be reviewed on the anniversary of the commencement of the lease.

Yours sincerely,
Tenants.


Is that ok?

ACG

Sounds fine to me.

BTW, legally im not sure where you would stand but your only goig off THEIR contract.

ognum

What has been the RPI since 2009, it seems you have got away with no increase for several years and now they are back dating the RPI increase.

try fighting, you may not win IMO and for sure you will get an RPI increase each and every year from now on!

G_M

1) check date notice was sent
2) check date increase is to be introduced. It should be 2 months later.

3) check RPI at date notice was sent.
4) check RPI 12 months previously
5) calculate or check the % increase between 3 & 4

That is the amount by which the rent can be increased.

AdrianC

ognum wrote: »

What has been the RPI since 2009, it seems you have got away with no increase for several years and now they are back dating the RPI increase.

<pokes random RPI calculator website>
15.9% from Dec '09 to Jan 14.

Except the contract is quite clear that it's the RPI over the previous year which applies...

The said review shall be in an upwards direction and be in accordance with the increase in the Retail Prices Index over that of the previous year

MrRee_2

They are catching up from 2009 - I assume you have had no increase since then?

If not, then I guess it's a fair request to now have to pay an uplift of 5 years times RPI - which would equal about 13%.

I also assume that hubby has had a payrise since 2009? I hope so anyway!

jjlandlord

Deleted.

Just saw the PS... You should put 'Scotland' in bold at the top, not as a PS!

HAMISH_MCTAVISH

Previous posters are correct, the lease extract you have posted does not provide for that increase.

But....

Further investigation of this bit is required.... In the event of this lease continuing for more than twelve months by tacit relocation as hereinbefore provided for"

What are the terms of tacit relocation and ending the lease in the event of it triggering "as hereinbefore provided for"?

As I'm sure you know, tacit relocation is a Scottish way of extending the lease, usually for the original duration, but can be superseded by way of additional specific or statutory exit clauses.

You should double check those, as they may contain a way for the landlord to terminate with just a couple of months notice.....

And refusing or challenging a rent increase may well trigger such action if the lease provides a way to the landlord of doing so.

If you do plan on refusing or challenging, you should also be sure that you've not violated any other clauses that would give the landlord grounds for irritating the lease.

MrsWassire

Re: terms of tacit relocation. The contract says "The lease shall run from the Tenth day of December 2009 to the Ninth day of June 2010 and monthly thereafter by tacit relocation until terminated by either party giving two months' written notice to the other party, unless the lease be earlier terminated as hereinafter provided".

Thanks for the replies. I think I'll call Shelter tomorrow. I really don't mind them putting up the rent, but I think a 13% increase is really excessive.