£25 a year rental increase?

Mechl

Hello,

i am looking a new tenancy agreement and ive noticed a couple of things i want to question in the terms and conditions of the contract.

these are below:


Renewals and Fees

* Where a property is managed a renewal fee of £195.00 inc VAT will be charged for either a 6 or 12 month fixed term. Should you decide to remain on a periodic tenancy, a fee of £95.00 inc VAT will be charged.

* All tenancies will be subject to an annual rental increase with a minimum of £25.00

Check Out

* On the last day of your Tenancy, we will carry out a final inspection. We will check the inventory, note final meter readings and take the keys from you. We also require a forwarding address and details of your utility suppliers.

* You will be charged £100.00 for the check out. This will need to be paid before your deposit is released.


my questions are:

1. can they charge to move to a periodic tenancy?
2. can they say in advance that the rent will go up yearly at a minimum £25 a year? (this is the biggest contention point)
3. can they actually charge you for a checkout?

Thanks in advance

theartfullodger

1. No.
(Currently but not in Scotland)
2. Yes.
3. Yes (but I think only if you are not charged for check-in).


Humbly suggest you stop looking just at fees. Work out total cost of renting from these cowboys each year then compare to average market rates. They might be playing the "lower the rent, charge more in fees" game...

Pennysmakepounds

Letting agents like to skim as much as they can off both sides LL and Tenants.


The 100 Check-out sounds a little cheeky, in my opinion.


The 25 annual increase - if this is as a whole figure then I see no issue with it but if its per month. Then it seems high and could potentially increase your rental above market rate for the area within a year. If the like for like rents have not increased in the area.


Is this a letting agency or a privately managed property?


Generally privately managed properties are much cheaper for these type of charges.

Mechl

theartfullodger wrote: »

1. No.
(Currently but not in Scotland)
2. Yes.
3. Yes (but I think only if you are not charged for check-in).


Humbly suggest you stop looking just at fees. Work out total cost of renting from these cowboys each year then compare to average market rates. They might be playing the "lower the rent, charge more in fees" game...

Thanks, so there is no fees at all for moving in (all waived to get someone in) as well as a first month free off the rental (as it needs decorating so this is to accomodate that). we dont mind the decorating as we can do it as we like and it wont cost £600.

so question 1 is that they can charge me to move to periodic as im in England and not Scotland?

bris

Yes in England and Wales they can charge these fees if it's in your contract. You signed it so it's too late now to complain.


Similar with the rent, even in Scotland the rent can be put up annually to reflect market values.


If you believe these terms are unfair then you can always vote with your feet at the end of your fixed term.


I also believe it will be £25 per month rather than year, nobody puts up rent by £2 a month

theartfullodger

No, you cannot be charged to go periodic, it is your legal right to do so ( E, W or Scotland). In Scotland it may be termed "tacit relocation"....

Mechl

ok thanks all,

ive not signed anything yet. this is the terms and conditions of the contract which im looking at before i agree and sign the contract for the rental agreement.

Its £25 a year increase(minimum), not a month. How anyone would shift a house with a £25 a month extra rental increase (£300 a year increase!)..

Artful - is that clause enforceable if we were to sign the contact, to charge to go to a periodic tenancy (ill ask them to remove it but dont expect they will).

G_M

Hmmm... I'm questioning myself. And all of you!

* I'm not convinced a court would enforce the fee to move to periodic. It might make a difference if moving to a SPT Vs a CPT. Since a SPT arises by law, not by contract, how can the contract impose a fee?

Would this be a SPT or CPT?

* a contractually imposed rent increase must be clear as to the amount. ie either related to an external but identifiable index (eg RPI, CPI etc) or a fixed amount (eg £25).
"a minimum of £25.00 " is far too vague and allows the LL to pick any figure they wish. It would be unenforcible. Possible "a maximum of £25.00" would be acceptable.

As to whether the £25 would be annual or montly, well I'm sure they meant monthly but the wording says annual!

* yes checkout can be charged depending whether this is a fee to the landlord, or the agent.

If the landlord (it's in the contract between landlord and tenant) then yes.
If the agent, then the agent can only charge the tenant if they are not also charging the landlord. The agent cannot double charge.


* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

* Rent increases: when & how can rent be increased?

theartfullodger

G_M's right - I'd missed the "minimum"... bit.



As it stands the clause would permit landlord to increase rent by (say /....) £325/month & I can't see any judge upholding that.



Dunno, but you're guaranteed to fall-out with landlord if you sign then later dispute & he takes you to court.

SmashedAvacado

if it says annual, then it will be interpreted as annual

so if you are happy with a £25 per year increase, i would not object to this as you may find they spot the mistake and ask for £25 per month increase

saajan_12

Mechl wrote: »

Hello,

i am looking a new tenancy agreement and ive noticed a couple of things i want to question in the terms and conditions of the contract.

these are below:


Renewals and Fees

* Where a property is managed a renewal fee of £195.00 inc VAT will be charged for either a 6 or 12 month fixed term. Should you decide to remain on a periodic tenancy, a fee of £95.00 inc VAT will be charged.- I think this is payable.. its a fee related to an event happening. If you don't pay the fee, then yes by statutory law the tenancy would still become periodic, but the LL could sue you for the fee per the contract. Its the same as any other fee which you have no control over but can contractually agree to and effectively build it into your rent in your head.

* All tenancies will be subject to an annual rental increase with a minimum of £25.00 - I think that's more for information that they will seek to increase at least £25. I don't think that could be enforeceable as its too vague.. else the LL could choose to raise it by £1025. If you sign a new contract then that would specify the new rent, else if you go peridic then I'd ignore this and if they want to they can increase the rent by a reasonable amount through S13 (which has the potential to be reviewed by tribunal etc)

Check Out

* On the last day of your Tenancy, we will carry out a final inspection. We will check the inventory, note final meter readings and take the keys from you. We also require a forwarding address and details of your utility suppliers.

* You will be charged £100.00 for the check out. This will need to be paid before your deposit is released.

- Another fee which you contractually agree to despite havign no control.
my questions are:

1. can they charge to move to a periodic tenancy? Yes
2. can they say in advance that the rent will go up yearly at a minimum £25 a year? (this is the biggest contention point)No because of the 'minimum'. Would be interpreted as =£25 increase or ignored comletely I think.
3. can they actually charge you for a checkout? - Yes

Thanks in advance

G_M wrote: »

Hmmm... I'm questioning myself. And all of you!

* I'm not convinced a court would enforce the fee to move to periodic. It might make a difference if moving to a SPT Vs a CPT. Since a SPT arises by law, not by contract, how can the contract impose a fee?

I disagree: Why does the fact that it arises by law make a difference? The fee (or lack of payment thereof) wouldn't stop the SPT from arising. Rather its a fee defined by a certain event happening, much like a checkout fee.. "if and when X happens, you pay me £Y". If the tenant didn't pay, the LL could sue for it as a contractual payment, but it wouldn't stop the SPT.