Tenancy renewal and rent increase: how to negotiate with a letting agent?

concernedSaver

Our fixed term tenancy agreement is due to end in a few months, and we enquired with the letting agent about renewing for an additional 12 months. The agent said that the LL is happy to do that, with a rent increase of approx. 5%, which seems a bit high to me.

We've been excellent tenants, always paid on time (even before the due date) and kept the property in pristine condition. We're happy with the property and can't really find any fault with it or with the way the agent dealt with us, but we still think it's not that easy to find tenants as good as us.

I have zero experience when it comes to negotiating with an agent (and I'm also terrible at confrontation): I guess it's not that simple, since he knows the local housing market much better than me and he's not scared by the prospects of finding new tenants and doing new checks (all the costs involved with this are actually his gain).

What would you do in this case? Should I ask straight away to lower the increase up to a figure I'm willing to accept, or should I try to ask for no increase and negotiate my way up?

Thanks for any tip!

Guest101

concernedSaver wrote: »

Our fixed term tenancy agreement is due to end in a few months, and we enquired with the letting agent about renewing for an additional 12 months. The agent said that the LL is happy to do that, with a rent increase of approx. 5%, which seems a bit high to me.

We've been excellent tenants, always paid on time (even before the due date) and kept the property in pristine condition. We're happy with the property and can't really find any fault with it or with the way the agent dealt with us, but we still think it's not that easy to find tenants as good as us.

I have zero experience when it comes to negotiating with an agent (and I'm also terrible at confrontation): I guess it's not that simple, since he knows the local housing market much better than me and he's not scared by the prospects of finding new tenants and doing new checks (all the costs involved with this are actually his gain).

What would you do in this case? Should I ask straight away to lower the increase up to a figure I'm willing to accept, or should I try to ask for no increase and negotiate my way up?

Thanks for any tip!

Sure, skip the monkey and speak to the boss ( LL ).

concernedSaver

Sure, skip the monkey and speak to the boss ( LL ).

I'm not sure how to do that, since I don't even have his contact details: our contract only states his name, and "care of" the agent address.

Pixie5740

You can ask the letting agent (in writing) for your landlord's contact details and by law they must supply them (within 21 days I think).

Does your tenancy agreement say anything about rent increases? How does your current rent + an additional 5% compare with similar properties in the area?

concernedSaver

You can ask the letting agent (in writing) for your landlord's contact details and by law they must supply them (within 21 days I think).

Good to know, I had no idea about that!

Does your tenancy agreement say anything about rent increases? How does your current rent + an additional 5% compare with similar properties in the area?

I double checked, and there is no word about renewing the FT or about rent increases. I guess that being a AST a LL can ask whatever price he wants, is that correct?

The rent is already a bit higher than the average for the area, but was reasonable given the above average condition of the property. I don't have hard data to contest the 5% increase, and I'm afraid that playing the market price card with an agent won't get me anywhere.

Guest101

concernedSaver wrote: »

Good to know, I had no idea about that!



I double checked, and there is no word about renewing the FT or about rent increases. I guess that being a AST a LL can ask whatever price he wants, is that correct?

The rent is already a bit higher than the average for the area, but was reasonable given the above average condition of the property. I don't have hard data to contest the 5% increase, and I'm afraid that playing the market price card with an agent won't get me anywhere.

Sure they can 'ask' whatever they want. Just like I could 'ask' to borrow your car, you can say 'no' to requests.

concernedSaver

Sure they can 'ask' whatever they want. Just like I could 'ask' to borrow your car, you can say 'no' to requests.

Yeah, the thing is I was actually trying to make sure if there is any other regulation on rent increases I'm not aware of

Guest101

concernedSaver wrote: »

Yeah, the thing is I was actually trying to make sure if there is any other regulation on rent increases I'm not aware of

I don't know what you're aware of or not,


but rent increases happen in 3 ways:


Mutual Consent
Contractual
Statutory


You don't want to increase it - so option 1 is out
Your contract doesn't state it can be - so no option 2
And you've not received a s.13 notice - so not option 3 (option 3 can be taken to tribunal)


Hope that helps

concernedSaver

I don't know what you're aware of or not, but rent increases happen in 3 ways:

This makes sense, thanks. I was actually wondering if there is some other regulation that says "you're only allowed to raise rents up to this amount every year", but I think there's none.

Thrugelmir

concernedSaver wrote: »

I have zero experience when it comes to negotiating with an agent (and I'm also terrible at confrontation): I guess it's not that simple, since he knows the local housing market much better than me and he's not scared by the prospects of finding new tenants and doing new checks (all the costs involved with this are actually his gain).

Agent will listen to what you have to say and report to the LL. Of course Agent may already been given instructions. Agent doesn't make the ultimate decision.

Miss_Samantha

concernedSaver wrote: »

Our fixed term tenancy agreement is due to end in a few months, and we enquired with the letting agent about renewing for an additional 12 months.

That's mistake #1.

Never enquire about renewing, let them move first.

As to whether 5% is too much, you need to do your homework and find out.