Rent increase to bring in line with market value?

goldwrapped

Hi clever people!
We're in a bit of a dilemma and wondered if anyone can help clarify things.
We moved in to our house 2.5 years ago. The market rental value of the house is around £1,400 pcm, but I negotiated a lower rent of £1,100 pcm with the landlord (a friend of a friend) and the landlord's agent when we moved in, as we couldn't afford the full market rent (which we told them at the time).
We were aware that the landlord had had a terrible time with his previous tenant - non payment of rent, didn't look after the place, etc, and we negotiated the lower rent on the grounds that we would cherish his house and garden, despite it being poorly maintained and having a huge building project next door, which we are still doing. We pay their gardener £120 pcm to keep the garden exactly as they would like it, and the same in cleaning costs for the place to be kept immaculately clean.
The AST agreement states that the rent can only be raised annually in line with the RPI, and no increase has been proposed as yet.
The old housing agents were bought out by a national company around a year ago, and they are a nightmare. The only contact we had from them in the first 8 months was a letter to say they wanted us to move our rent payment date forward a week, which we ignored, and they didn't enforce their request.
Their latest endeavour was to send round a valuation guy, together with a painter and decorator and a carpet fitter. We are now expecting a letter to say they want to put our rent up to the full market value.
What do you think? I have the original email trail proposing the lower rent, with the reasons for it and their agreement to it. I don't want to have to move again so soon - are the landlords and/or their agents able to enforce a rent increase other than the one described in the contract?
Thanks in advance for reading this and for any help you can offer.

anselld

They can only increase the rent in line with the AST agreement, i.e. RPI, unless you agree otherwise.

However, they could choose to terminate the agreement via s21 with the appropriate notice.

So your negotiating position depends how much you want to stay and how difficult you think the LL would find it to replace you if you left.

Kynthia

Are you really paying £240 a month for gardening and cleaning? Is it required in your AST and could you stop doing so if money was tight?

G_M

Your contract is with the landlord (friend of a friend), not the agency who simply work on his behalf and to his instructions. They may advise him (eg on rent increases) but the decision is the LL's.

Have you spoken to him?

If he does wish to increae the rent, it must be in line with the contract (even if the original fixed term has expired and the tenancy become Periodic).

[FONT=&quot]Housing Act 1988 [/FONT]section 5 Security of Tenure:

(3)The periodic tenancy referred to in subsection (2) above is one—

(a)taking effect in possession immediately on the coming to an end of the fixed term tenancy;

(b)deemed to have been granted by the person who was the landlord under the fixed term tenancy immediately before it came to an end to the person who was then the tenant under that tenancy;

(c)under which the premises which are let are the same dwelling-house as was let under the fixed term tenancy;

(d)under which the periods of the tenancy are the same as those for which rent was last payable under the fixed term tenancy; and

(e)under which, subject to the following provisions of this Part of this Act, the other terms are the same as those of the fixed term tenancy immediately before it came to an end, except that any term which makes provision for determination by the landlord or the tenant shall not have effect while the tenancy remains an assured tenancy.

goldwrapped

Hi lovelies. Thank you for your responses. I know that gardener/cleaner money seems outrageous but it sets my mind at ease knowing the whole place is immaculate. Their gardener is in contact with the landlords and will tell them how well their house is maintained... IMHO more important than a hundred quid or so a month, especially given how much we had to spend to get everything nice again after the last tenant left (and deal with the bailiffs looking for her, on a few occasions!). Obviously, if (and when, by the way things are looking) the rent is hiked up before we're ready to move they will be the first cuts we'll make.
Oh well, time to start dusting off the packing boxes again (15th move in 17 years with 3 kids, I hate it!) but at least I know now that it will be on our terms, not theirs .... Xxx

pinkshoes

If they put the rent up, then get rid of the gardener and some of the cleaning.

The LL has a tenant who is looking after the property, so would be daft to rock the boat.

dancingfairy

Either wait until a increase is actually propsed and see if it is a) in line with your budget and b) in line with your tenancy agreement or why not communicate with the landlord directly and offer a small rate increase in return for a fixed term of a year?
df

Kynthia

I think you're premature in looking to move. The agents can't make the landlord increase the rent, you have a clause in your contract that specifies how much rent can be increased by, you could ask the landlord for another fixed term which would prevent any changes during that time, you could drop the gardening and cleaning costs to offset any changes, etc.

Your contract is still with the landlord, who hasn't changed. If you move you may end up worse off with an unknown landlord.

mbr5386

Help with letter to landlord re rent increase

Had a letter from landlord to increase rent by £50 (required notice given) I think that we should write a letter to see if we can pursued him not to. Good tenants, always pay in time and in full, place kept in good condition, no complaints. The reason LL gave us is the market value of the whole building (not our flat), but we asked our neighbours and they did not receive any letter at all. We have a rolling contract and we live there for 1.5 year.

Anyway I am struggling to word it, wondered if anyone had written a similar letter that I could pinch the wording from? Many thanks!

G_M

Ideally negotiations are best done face to face. Ring and ask LL to come round. Suggest he combine the visit with your quarterly (whatever) inspection and to discuss the rent.

Do research in advance and have examples ready of similar local properties advertised.

Offer tea and cake!

See also

https://forums.moneysavingexpert.com/discussion/5180214