Renting - 12 month contract rent rise

kh2910

Hi all
I have a question about rent rises that are written into contracts. My rent contract was signed end of June last year for a fixed 12 month tenancy. In that contract it stated that every 12 months rent would rise by 3-6% dependent on inflation, with 3% as the baseline if inflation was below that number. I have been asked by the agency if we would like to extend our tenancy. I would like to stay but object to a rent rise of 3% given a) inflation has been below that and b) rental prices in our area have remained static.

I have written to ask if there is any maneuverability as we have been excellent tenants (and I know they have had issues with tenants in the past) and pointing our similar properties are priced within the £490-500/week band and this would take our rent above that, but I suspect the answer I will get back is, you signed the contract and the rent rise was in that. From my point of view, I signed a 12 month contract and if I decide to extend for another 12 months that is a different contract to sign, therefore rent negotiation is a part of that.

What would your view on this be? I am fully aware I may lose this battle, but it is worth a try, especially since it is already £490/week and I could do with not having to pay an additional c.£70/month!

System

Don't sign another fixed term and serve notice in June to move to a different place. As of the 1st June agents/landlords cannot charge fees so other than getting together a new deposit, your current one should be retuned following your checkout, and moving costs you could get something that better suits your budget.

kh2910

That is interesting to know, it makes sense as to why the agency may be pushing for a decision now if they want to try and market it before the 1st June

G_M

kh2910 wrote: »

.......In that contract it stated that every 12 months rent would rise by 3-6% dependent on inflation, with 3% as the baseline if inflation was below that number.
depending on the exact wording (which you don't quote), this is probably unenforceable as it does not definitively make clear what the increase will be.

I have been asked by the agency if we would like to extend our tenancy. I would like to stay but object to a rent rise of 3% given a) inflation has been below that and b) rental prices in our area have remained static.
You can always agree a new fixed term at whatever rent you and the LL/agent agree betwen you.

I have written to ask if there is any maneuverability as we have been excellent tenants (and I know they have had issues with tenants in the past) and pointing our similar properties are priced within the £490-500/week band and this would take our rent above that,
Better to negotiate with the landlord.

but I suspect the answer I will get back is, you signed the contract and the rent rise was in that.
see above

From my point of view, I signed a 12 month contract and if I decide to extend for another 12 months that is a different contract to sign, therefore rent negotiation is a part of that.
If you move to a periodic (rolling monthly) tenancy, the terms of the original agreement apply (including rent increases). But see my comment earlier.

If you sign a new fixed term, it can be for whatever rent you agree.

See also:

* 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?

lookstraightahead

I was told that any rent rise would be based on inflation

G_M

lookstraightahead wrote: »

I was told that any rent rise would be based on inflation

What relevance to the OP is what you were told?


And 'based on inflation' is so vague as to have no legal meaning or force. It can be ignored.

lookstraightahead

G_M wrote: »

What relevance to the OP is what you were told?


And 'based on inflation' is so vague as to have no legal meaning or force. It can be ignored.

I thought maybe there was an element of good practice involved, that's all.

Yes it can be ignored. It was just something the managing agent mentioned to us.

DontBringBertie

“depending on the exact wording (which you don't quote), this is probably unenforceable as it does not definitively make clear what the increase will be.”

Surely a clause which has wording along the lines of “rent will increase every 12 month in line with RPI subject to a minimum of a 3% rise and maximum of 7%” is enforceable?

G_M

DontBringBertie wrote: »

“depending on the exact wording (which you don't quote), this is probably unenforceable as it does not definitively make clear what the increase will be.”

Surely a clause which has wording along the lines of “rent will increase every 12 month in line with RPI subject to a minimum of a 3% rise and maximum of 7%” is enforceable?

Well now you are just making stuff up!


OP said:

In that contract it stated that every 12 months rent would rise by 3-6% dependent on inflation, with 3% as the baseline if inflation was below that number.

I specifically made the point that the OP had not quoted the clause. Let's wait and see if (s)he gives us a quote to commet on.

[Deleted User]

OP, you can always attempt to negotiate. The LL/LA can agree or disagree. If they are proposing a rent increase of £840 per year (possibly more, this has to be determined), you can agree to the increase or move.

In view of the fact that many admin fees won't be possible after June 1st, and you are certain you can rent another property for what you are paying now, this might make moving the preferable option. Or not. Its your choice.

Whether the LA can insist on a 3 to 6% increase in rent depends on what your TA says, and how binding this is. We can't see it.

I would try negotiating stating things as you have here. I would probably concentrate on prices in your area rather than go down the rabbit hole and start discussing the legalities of the previous contract terms. It could get complicated as I doubt either you or the LA have a legal team, it could lead to misunderstandings and useless verbal arguments.