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

diystarter7

arte said:

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.

In that case, I would not live in a property that will be overcharging for rent as I'm sure you should be able to get something cheaper.

JReacher1

diystarter7 said:

arte said:

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.

In that case, I would not live in a property that will be overcharging for rent as I'm sure you should be able to get something cheaper.

Why do you say that the landlord is overcharging? In the OP’s original post they say even with the 22% increase the rent is a good deal compared to comparable properties in the area. 

Sounds like the flat is not currently being rented at market rate and after two years of no rises the rent is now significantly undervalued. 

saajan_12

arte said:

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. - okay, but that % doesn't tell you whether the new rent is high or the old rent was low. What's relevant is really the new rent relative to the market. 
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. - okay, so more likely that the old rent was low.. which is good for you!
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. - well sort of.. they can ask for anything, but you can refuse > go onto periodic > wait for a Section 13 notice to increase rent > challenge the rent increase at which point the tribunal would decide whats reasonable and in line with market rents. 

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. - have you followed up to say its still broken? If they actually refuse point blank then you may have an issue, but until then it could have just been forgotten or assumed to be fine. 
Since day one, the heating in one of two bedrooms hasn't worked. It appears that the thermostat isn't working. - so report, and get them to fix. Do you mean that the room doesn't heat up even in winter? 
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. - that's not really on the LL - if its still functional as a bed, then they don't have to fix anything. Anything more would just be goodwill. You can get your own mattress (strictly should leave one behind when you leave, but if you didn't then they'd just get the value of the old one which would be 7+ years old, so minimal)

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? - they can ask, you don't have to answer. Note that they might choose to serve a Section 21 notice expiring 16 Sept or later and find a new tenant who they think will pay the higher rent. 

Thank you!

I would ignore the % really as that has multiple factors and isn't relevant.

What's more relevant is how the new rent compares with the rest of the market. If its still a good deal, then you don't really have a strong negotiating position if you refuse to sign at the new rent, then either
- go onto periodic tenancy, they increase rent via Section 13 notice and any challenge fails as its in line with the market; or
- you leave or evicted (eventually) and get the same or worse elsewhere

The latter does entail a void + readvertising costs + hassle for the LL, but that's balanced with moving costs + hassle for you, which they'll know. Also the LL might think its worth taking the hit on a void now if they'll keep having issues raising rents and the 'discount' vs market rent adds up. 
So perhaps worth a try, but would only push so hard so you don't end up spiting your own face. 

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.

Yes in that they might choose to serve Section 21 notice after that and still be in time to have the notice expire at the earliest opportunity (16 Sept).