Advice please re rent increase

goldwrapped

Hi, I would really appreciate some advice on what to do next!
We have been in our property for 3 years. We recently received a letter from the agents trying to raise our rent by 18%.
There is a clause in our tenancy agreement (AST) that states our rent can only be increased in line with RPI, which I understand is currently 0.5%.
We have offered to meet the increase half way but the landlord has rejected this, saying we need to pay the full 18% increase, or leave.
What can we/should we do?
I feel really upset that the landlord is being so greedy, we're excellent tenants and really look after his property.
Many thanks in advance.

Pixie5740

Since you mention having an AST I'm guessing the property is in England or Wales. If so, have a read at G_M's guide for Rent Increases. You should be able to find the information you need there.

stator

Ok, so you say you have an AST that's 3 years old, so we need to know, when did the AST run out? Did you renew it with a new AST? Or have you just kept on paying your rent. If so then when the AST ran out you were transfered onto a Periodic tenancy.

If you are on a periodic tenancy then the landlord probably only has to give you 2 months notice to leave, so if you refuse the rent increase they may just evict you and get another tenant in to pay the increased rent. Technically you could appeal to the rent increase tribunal but that wouldn't stop you being evicted so is pretty useless.

If you are still within your AST and the AST says inflation only rent increases then you can just refuse. However you will probably be evicted when the AST expires.

So it's a game of bluff really.

goldwrapped

Hi again, thank you for your replies.
The AST was for 6 months and we didn't hear anything after the initial 6 months, so it just carried on rolling. Does this mean that the clause regarding rent increases in line with RPI is no longer valid?
They have sent a letter requesting the rent increase, which we replied to in writing with a counter-offer. I have now received an email rejecting our offer.
Should I acknowledge receipt of this email, or just ignore it and wait for the S13?
Should we increase our rent in line with RPI or just carry on paying rent at the previous rate?
Many thanks in advance.

G_M

Did you quote the tenancy agreement clause when you made your counter offer?

Have you researched rental prices in the area? Is your rent below market? Above?

The landlord could issue a S13 Notice - whether your contractual agreement via the tenancy agreement can override this I'm not sure.

Or the LL could issue a S21 Notice and seek a different tenant willing to pay more.

For the time being though, you are under no obligation to pay the increase.

The preferable solution is a reach an amicable agreement. Why not suggest a meeting? Invite the LL for tea (provide cake!).

* Explain your position financially.
* Provide adverts for other similar properties locally you could move to rather than pay his new rent
* show him the tenancy clause
* offer a compromise again so as to not appear rigid and uncompromising
* point out the expence he'll incur if you leave (at least a month with zero rent plus re-marketing costs)

Pixie5740

It sounds like you have Statutory Periodic Tenancy (check though to see if your original TA says anything about a Contractual Periodic Tenancy) which means that if you don't accept the rent increase and can't negotiate a lower rent increase then it's fairly straightforward for your LL to get rid of you and find tenants who will pay the rent he is looking for. See Ending an AST.

Is the rent with the 18% increase in line with rents for similar properties in the same area? If it is then I see little point in trying to fight this as your LL will find a T who will pay it and you'll end up paying similar rent to another LL but with the hassle of moving.

goldwrapped

Hi G_M
I've already done everything you suggest but in writing as the LL is overseas - it's nice to know I've done it right!
The rent is fairly low in comparison with other local rentals, but the building has had no maintenance in a long time, and is extremely costly to run (ineffective oil fired boiler, no heating in the kitchen, no insulation, gaps around the doors and windows).
Starting to trawl the rental ads now!

stator

Yes you have 3 choices and none are very good. Pay the increased rent or Keep negotiating and hope the LL doesn't get tired of it and serve you notice or refuse to pay the new rent and hope you don't get served notice (don't like your chances with that though)

goldwrapped

Thanks again:)
So ... If we decide to ignore the snotty email we received today, and get served with a S21, am I correct in thinking that they would still have to send bailiffs in to evict us after the 2 months are up?

Peter333

Woaaahh! That is a BIG increase! I would definitely be looking for something else.

Not even sure if it's allowed?

goldwrapped

No, me neither Peter.... Am reading G_Ms excellent fact sheets on the subject but I'm still not sure if the clause in the TA protects us at all