Renting 12 months - what next?

M_anonymous

Hello, 
I moved into a house by myself with tenancy start date 7th June 2019 which stated for 12 months with no break clause. 
The rent is £1000 per month. 
I have never been in touch with the Land Lord directly or had any need to. 
There has been a leak from the bathroom which was reported around 20th December 2019. It is leaking down into the kitchen and just looks nasty which still hasn't been rectified and is now taking even longer because of this virus outbreak. 

The estate agent has been round twice to check the property over with no issues reported other than the noted leak.  

The estate agent has now been in touch to ask for a rent increase to £1100 per month. A 10% increase seems fairly steep despite their !!!!!! "market rental" line?? This is also whilst we are in a pandemic situation and I guess many people will be struggling to meet full payments depending on their situation leaving landlords in a sticky situation.  I am quite lucky that my job is not affected and I don't envisage it should be. *touch wood*. 

"I am writing with regard to the tenancy agreement for the above property which is due to expire on 6th June 2020.
Your landlord has contacted us to advise that they are willing to offer you a new term but as rental values have increased over the last twelve months, they are requesting an increase to £1100.00 per month. This increase is below the current market value but as existing tenants they are keen to keep the rent at a very reasonable rate.
All other conditions of the agreement would remain the same. 
 I would be grateful if you could confirm if you will be staying on at the property under the new Terms.
Once confirmed, I will prepare a new agreement will be drawn up and then be sent to all tenants and guarantor (if required) via email in order for you to complete this online. 
Should you decide not to stay at the property, we will require written notice from you confirming your last day of tenancy in line with your existing agreement.
 I would be grateful if you could consider your landlords' offer and I look forward to hearing from you within the next 7 days."

I proposed that the rent stay the same for 3 months until we are further down the line and we know more how this pandemic is going to play out and review then. They would still then receive 75% over the year. 

"What I would suggest is that we do the renewal at £1100 and then have a payment plan in place to reduce the rent for 3 months for it to be repaid at a later date.  Would this be ok?" I haven't since replied as I can only assume the estate agent is trying to increase their income which is totally fair business is business. 
I can't see many people moving in this time so they could be left with £0 income which seems preposterous in the current climate.  
Someone has suggested that I counter offer at the rate of inflation 1.9%  = £1,020 per month. 

Once this 12 month agreement is up, does it become a month - by - month rental with either party then having to give a 2 month notice period? 

What would be sensible? 
This is my first rental agreement so I'm not 100% sure how these things play out. 

[Deleted User]

M_anonymous said:

Hello, 
I moved into a house by myself with tenancy start date 7th June 2019 which stated for 12 months with no break clause. 
The rent is £1000 per month. 
I have never been in touch with the Land Lord directly or had any need to. 
There has been a leak from the bathroom which was reported around 20th December 2019. It is leaking down into the kitchen and just looks nasty which still hasn't been rectified and is now taking even longer because of this virus outbreak. 

The estate agent has been round twice to check the property over with no issues reported other than the noted leak.  

The estate agent has now been in touch to ask for a rent increase to £1100 per month. A 10% increase seems fairly steep despite their !!!!!! "market rental" line?? This is also whilst we are in a pandemic situation and I guess many people will be struggling to meet full payments depending on their situation leaving landlords in a sticky situation.  I am quite lucky that my job is not affected and I don't envisage it should be. *touch wood*. 

"I am writing with regard to the tenancy agreement for the above property which is due to expire on 6th June 2020.
Your landlord has contacted us to advise that they are willing to offer you a new term but as rental values have increased over the last twelve months, they are requesting an increase to £1100.00 per month. This increase is below the current market value but as existing tenants they are keen to keep the rent at a very reasonable rate.
All other conditions of the agreement would remain the same. 
 I would be grateful if you could confirm if you will be staying on at the property under the new Terms.
Once confirmed, I will prepare a new agreement will be drawn up and then be sent to all tenants and guarantor (if required) via email in order for you to complete this online. 
Should you decide not to stay at the property, we will require written notice from you confirming your last day of tenancy in line with your existing agreement.
 I would be grateful if you could consider your landlords' offer and I look forward to hearing from you within the next 7 days."

I proposed that the rent stay the same for 3 months until we are further down the line and we know more how this pandemic is going to play out and review then. They would still then receive 75% over the year. 

"What I would suggest is that we do the renewal at £1100 and then have a payment plan in place to reduce the rent for 3 months for it to be repaid at a later date. 

 Would this be ok?"

 I haven't since replied as I can only assume the estate agent is trying to increase their income which is totally fair business is business. 

I can't see many people moving in this time so they could be left with £0 income which seems preposterous in the current climate.  
Someone has suggested that I counter offer at the rate of inflation 1.9%  = £1,020 per month. 

Once this 12 month agreement is up, does it become a month - by - month rental with either party then having to give a 2 month notice period? 

What would be sensible? 
This is my first rental agreement so I'm not 100% sure how these things play out. 

The sticky at the top of the board, Tenancies in Eng/Wales: Guides for landlords and tenants, covers what happens at the end of the fixed term, rent increases and repairing obligations.

Comms69

Can you rent a comparable property for £1000 or less? 

AdrianC

M_anonymous said:

I moved into a house by myself with tenancy start date 7th June 2019 which stated for 12 months with no break clause. 
The rent is £1000 per month. 
I have never been in touch with the Land Lord directly or had any need to. 

...apart from...

There has been a leak from the bathroom which was reported around 20th December 2019. It is leaking down into the kitchen ... which still hasn't been rectified

I'd have said that was a pretty good reason to contact the landlord directly about the leak...

At least that way you'll know if the landlord has hired an incompetent agency or if the landlord themselves simply don't give the first flying toss about their property or tenant.

The estate agent has now been in touch to ask for a rent increase to £1100 per month.
...
"I am writing with regard to the tenancy agreement for the above property which is due to expire on 6th June 2020.
Your landlord has contacted us to advise that they are willing to offer you a new term but as rental values have increased over the last twelve months, they are requesting an increase to £1100.00 per month.
...
Should you decide not to stay at the property, we will require written notice from you confirming your last day of tenancy in line with your existing agreement."

I proposed that the rent stay the same for 3 months until we are further down the line and we know more how this pandemic is going to play out and review then. They would still then receive 75% over the year. 

"What I would suggest is that we do the renewal at £1100 and then have a payment plan in place to reduce the rent for 3 months for it to be repaid at a later date.  Would this be ok?"

They forgot to mention the third option...

You do nothing. You sign nothing. You send nothing.

Your existing tenancy continues, unchanged, £1,000/mo - although there may be an increase written into the tenancy, probably inflationary. If they want you to move out, they need to give you two months notice. If you want to move, you give one month's notice.

Frankly, with an agent and/or landlord that cares so little about the property that they're happy for a water leak to continue unabated, moving would not be your worst plan.

RelievedSheff

How does the £1000pcm you are currently paying compare to other rents in the area?

Could you rent something similar for £1000pcm?

greatcrested

Read the stickies:

Post 2: Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new tenant protection (2015)

Post 3: Deposits: Payment, Protection and Return.

Post 4: 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?

Post 5: Rent increases: when & how can rent be increased?

M_anonymous

Comms69 said:

Can you rent a comparable property for £1000 or less? 

RelievedSheff said:

How does the £1000pcm you are currently paying compare to other rents in the area?

Could you rent something similar for £1000pcm?

Looking on the estate agents website there are 3 houses on there with 2 bedrooms in the same town/area for £900 / £950 / £950. These are worse off as no garage/driveway. So to me, there's the extra £50/£100 already based on a £1000 (Not the new increase). 

AdrianC said:

M_anonymous said:

I moved into a house by myself with tenancy start date 7th June 2019 which stated for 12 months with no break clause. 
The rent is £1000 per month. 
I have never been in touch with the Land Lord directly or had any need to. 

...apart from...

There has been a leak from the bathroom which was reported around 20th December 2019. It is leaking down into the kitchen ... which still hasn't been rectified

I'd have said that was a pretty good reason to contact the landlord directly about the leak...

At least that way you'll know if the landlord has hired an incompetent agency or if the landlord themselves simply don't give the first flying toss about their property or tenant.

The estate agent has now been in touch to ask for a rent increase to £1100 per month.
...
"I am writing with regard to the tenancy agreement for the above property which is due to expire on 6th June 2020.
Your landlord has contacted us to advise that they are willing to offer you a new term but as rental values have increased over the last twelve months, they are requesting an increase to £1100.00 per month.
...
Should you decide not to stay at the property, we will require written notice from you confirming your last day of tenancy in line with your existing agreement."

I proposed that the rent stay the same for 3 months until we are further down the line and we know more how this pandemic is going to play out and review then. They would still then receive 75% over the year. 

"What I would suggest is that we do the renewal at £1100 and then have a payment plan in place to reduce the rent for 3 months for it to be repaid at a later date.  Would this be ok?"

They forgot to mention the third option...

You do nothing. You sign nothing. You send nothing.

Your existing tenancy continues, unchanged, £1,000/mo - although there may be an increase written into the tenancy, probably inflationary. If they want you to move out, they need to give you two months notice. If you want to move, you give one month's notice.

Frankly, with an agent and/or landlord that cares so little about the property that they're happy for a water leak to continue unabated, moving would not be your worst plan.

Hi Adrian, 
From the beginning the estate agent has done everything. The rental agreement says this is a "managed rental" so this is what I expect them to do hence why not being in touch directly with the LandLord. Can the estate agent give out the land lords contact details if I ask to deal with them directly? I assumed the £1000 meant the Estate agent took a cut before handing over the remainder to the landlord. 

Ok - this sounds plausible. 

I have been looking over all the documents as a year passes lots happens so some levels of absolute detail are forgotten. 
Expires 6th June and thereafter from month to month. 
So if no agreement comes before that date, I continue to pay £1000, they can't take what they wanted (£1,100) from the deposit should they then choose they wish to give notice?
The break clause of 12 months at the bottom of the image, I assume is for this first year of renting, and doesn't override the comment of the "From month to month" after the expiry? 
 
Thanks for commenting. 

Comms69

The agent has no relationship to you, your deposit or anything else. They are contracted by the landlord to work in his/her/their behalf.

Whether they take a percentage is irrelevant (they obviously do though).

What is relevant is that the market rate has not risen. So i'd counter by offering £900 rent a month. Given that even a single month empty would eat up a full year of the increased price. I doubt theyll push it

greatcrested

M_anonymous said:

Comms69 said:

Can you rent a comparable property for £1000 or less? 

RelievedSheff said:

How does the £1000pcm you are currently paying compare to other rents in the area?

Could you rent something similar for £1000pcm?

Looking on the estate agents website there are 3 houses on there with 2 bedrooms in the same town/area for £900 / £950 / £950. These are worse off as no garage/driveway. So to me, there's the extra £50/£100 already based on a £1000 (Not the new increase). 

AdrianC said:

M_anonymous said:

I moved into a house by myself with tenancy start date 7th June 2019 which stated for 12 months with no break clause. 
The rent is £1000 per month. 
I have never been in touch with the Land Lord directly or had any need to. 

...apart from...

There has been a leak from the bathroom which was reported around 20th December 2019. It is leaking down into the kitchen ... which still hasn't been rectified

I'd have said that was a pretty good reason to contact the landlord directly about the leak...

At least that way you'll know if the landlord has hired an incompetent agency or if the landlord themselves simply don't give the first flying toss about their property or tenant.

The estate agent has now been in touch to ask for a rent increase to £1100 per month.
...
"I am writing with regard to the tenancy agreement for the above property which is due to expire on 6th June 2020.
Your landlord has contacted us to advise that they are willing to offer you a new term but as rental values have increased over the last twelve months, they are requesting an increase to £1100.00 per month.
...
Should you decide not to stay at the property, we will require written notice from you confirming your last day of tenancy in line with your existing agreement."

I proposed that the rent stay the same for 3 months until we are further down the line and we know more how this pandemic is going to play out and review then. They would still then receive 75% over the year. 

"What I would suggest is that we do the renewal at £1100 and then have a payment plan in place to reduce the rent for 3 months for it to be repaid at a later date.  Would this be ok?"

They forgot to mention the third option...

You do nothing. You sign nothing. You send nothing.

Your existing tenancy continues, unchanged, £1,000/mo - although there may be an increase written into the tenancy, probably inflationary. If they want you to move out, they need to give you two months notice. If you want to move, you give one month's notice.

Frankly, with an agent and/or landlord that cares so little about the property that they're happy for a water leak to continue unabated, moving would not be your worst plan.

.... Can the estate agent give out the land lords contact details if I ask to deal with them directly?

Landlord & Tenant Act 1985   S1:

1 Disclosure of landlord’s identity.

(1)If the tenant of premises occupied as a dwelling makes a written request for the landlord’s name and address to—

(a)any person who demands, or the last person who received, rent payable under the tenancy, or

(b)any other person for the time being acting as agent for the landlord, in relation to the tenancy,

that person shall supply the tenant with a written statement of the landlord’s name and address within the period of 21 days beginning with the day on which he receives the request.

(2)A person who, without reasonable excuse, fails to comply with subsection (1) commits a summary offence and is liable on conviction to a fine not exceeding level 4 on the standard scale.

csgohan4

greatcrested said:

Read the stickies:

Post 2: Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new tenant protection (2015)

Post 3: Deposits: Payment, Protection and Return.

Post 4: 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?

Post 5: Rent increases: when & how can rent be increased?

wish i knew about this 10 years ago, I actually reluctantly agreed to a rent increase when I could have done nothing, which Yourmove didn't make clear in the rent increase letter. My younger naive self would have learnt alot from here

saajan_12

Not sure it really helps to get into the landlord vs agent distinction if the agent is responding reasonably. The % increase isn't really relevant either, as the starting rent may have been lower than market (I don't know).

The point is really, how much would you be willing to pay for that house vs what you would pay elsewhere. Offer that to the LA (maybe less that 1000, maybe a small increase, maybe 1100 - depends on the local market, condition, what you're looking for in the house). Be willing to move / not sign if they don't agree. Note you can
(1) sign a new fixed term contract at £X rent; or 
(2) continue on rolling contract at same £1000 rent initially (unless you agree to revise rent, LL would have to send notice etc, so one to discuss if / when that happens) 
(3) move out after 12 months (potentially after serving notice depending on contractual agreements)