Rent renewal: what chances do we have to negotiate on the price?

arte

Hello everyone,

The rental contract for our flat expires in mid-September. Seeing the current market trend we were expecting an increase (the rent was kept the same the last 2 terms), and the estate agent sent us an email today with a new asking price 22% higher than the current one. It's definitely not a great news since the rising cost of living, but paradoxically, the increased price will be a "good deal" when compared to the price of similar properties in our area at the moment. I checked online and I'm aware that the government guidance to landlords for existing tenants is to be fair and realistic with the rent increase, but that there is no cap on how much they can charge.

Based on your experience, I wonder if there are enough reasons for us to try and negotiate on the increase? And what do you think would be a reasonable offer from our end?

We have lived in this property for over 5 years (it's a fairly new building, just over 7 years old). The landlord knows that we are trustworthy and not demanding, and actually there are a few issues that the landlord has been aware of for a long time but have never been addressed.
The property is facing the communal garden and has its patio. 3 out of 4 doors accessing the patio are defective, one being completely stuck and another almost impossible to open. The landlord sent in the past some people to check what the problem was but they never came back to fix it. Our only access to the outside is through these doors.
Since day one, the heating in one of two bedrooms hasn't worked. It appears that the thermostat isn't working.
One of the two mattresses has been changed, but the other one has been the same since we moved in and was used by the previous tenants 7 years ago. You can feel the springs when sleeping on it, and it's causing back and shoulder pain every day. We have asked them to change it, but they only offered to buy a topper.

Another thing... We have been asked by the estate agent to inform them within 5 working days of our intentions. The contract ends on September 16th, and we would, of course, appreciate more time to decide before then. Isn't that an unnecessary and unreasonable request? Can they do that?

Thank you!

chanz4

Shelter Legal England - Rents and rent increases for assured and assured shorthold tenancies - Shelter England

canaldumidi

It is always worth tryng to negotiate a lower increase than that proposed, and in doing so it helps to have a good idea of local market rates.

You can also use the argument that a change of tenant (were you to leave) always costs a landlord money as well as meaning he has an unknown and potentially unrelaie new tenant in place of yourself a long-standing and reliable one.

Having said that, negotiating with the LL can be better than with the agent. Agents make money when tenants leave/need replacing. LL's lose money!

But ultimately the LL can demand what he wants. You could, of course, remain as a periodic tenant rather than signing a new fixed term at a new rent. Your rent would thus remain the same, though the LL could then either serve a S21 t evie, or serve a S13 to increase the rent.

Now read:

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?

arte

canaldumidi said:

It is always worth tryng to negotiate a lower increase than that proposed, and in doing so it helps to have a good idea of local market rates.

Thanks! We'll definitely try negotiating directly with the LL. The estate agent only looks after the administration for the LL but they don't manage the property fully, they are not even aware of those issues I listed above.

Do you know if they can ask us to take a decision within 5 days? It sounds absurd to us as a request.

dimbo61

Speak to the organ grinder and Not the monkey.
The loss of even one month's rent will mean the LL will be losing money for 6/8 months.
You have lived in the property for 5 years so why not buy your own mattresses?
Inform your Landlord you can't afford this massive increase.
Be nice if you like your home ! 
We can afford 5/10% but 22% is taking the biscuit.
See what they say.
Explain you have been a good tenant and they may end up with bad tenants.
Has the LL had an EICR done, GSC, PAT testing, etc 

diystarter7

dimbo61 said:

Speak to the organ grinder and Not the monkey.
The loss of even one month's rent will mean the LL will be losing money for 6/8 months.
You have lived in the property for 5 years so why not buy your own mattresses?
Inform your Landlord you can't afford this massive increase.
Be nice if you like your home ! 
We can afford 5/10% but 22% is taking the biscuit.
See what they say.
Explain you have been a good tenant and they may end up with bad tenants.
Has the LL had an EICR done, GSC, PAT testing, etc 

Great post.
People that I know that are LL's do not raise the rents every year to good T's
By good T's I don't mean they don't report broken items etc I mean good i the sense they always pay their rent on time or warn the LL's and then make it up

Tell the LL that you are really hard up and struggling and this rise is making you ill and though you don't want to but will have to move because you can't afford it. Tell them about the squeeze, not afford any hols etc buying low-brand food as you try to keep on top of your obligations buy saving a bit for a rainy day as you hate having to default on rent/bills etc.

Most LL's are very nice to nice T's. Tell that that you are willing to pay more and lets say, 9% and expect to pay about 12/14%

Try it and don't bother with the EA but it is your choice 

canaldumidi

arte said:

canaldumidi said:

It is always worth tryng to negotiate a lower increase than that proposed, and in doing so it helps to have a good idea of local market rates.

Do you know if they can ask us to take a decision within 5 days? It sounds absurd to us as a request.

Of course they can ask. Does not mean you have to answer, either within 5 days, 5 weeks,or ever!

Mid Sept is a long way ahead so perfectly reasonable if you have not decided/planed your life that far ahead.

And of course you don't have to answer at all if you don't want. Just let the tenany go periodic. (you have read the links yes?)

diystarter7

IMO, rent rises should be linked to the rate of inflation.

arte

diystarter7 said:

IMO, rent rises should be linked to the rate of inflation.

I agree. Instead once again it seems the power is all in the hands of greedy LLs and Agents vs tenants.

Of course, there are many LLs that are nicer and prefer to have someone reliable and trustworthy. I think sadly it's not the case with our LL, he lets the estate agent deal for him without any consideration from our side.

anselld

arte said:

canaldumidi said:

It is always worth tryng to negotiate a lower increase than that proposed, and in doing so it helps to have a good idea of local market rates.

Thanks! We'll definitely try negotiating directly with the LL. The estate agent only looks after the administration for the LL but they don't manage the property fully, they are not even aware of those issues I listed above.

Do you know if they can ask us to take a decision within 5 days? It sounds absurd to us as a request.

The Agent are asking for a decision within 5 days so that they still have time to issue a Section 21 two months before the expiry of the fixed term on 16th September.  That may or may not be with the knowledge and agreement of the Landlord.  Another reason to make sure you talk with the Landlord and make sure they know what is going on.

[Deleted User]

I would offer 12% increase. Still well below market rate in terms of alternative similar properties. Its above inflation so a serious offer on your part.