Rent increase... Advice wanted

billy2shots

Brie said:

Whilst I agree that going from £650 a month to £795 must be a bit of a shock it doesn't seem to be a massive increase if you consider there's been no increase in 8 years.  

a quick calculation suggests that this is equivalent to about 5% a year - 

Nowhere near 5%. 

Compounded each year, the rise is the equivalent to 2.5% each year. Bargain given the changes to letting and red tape in that time. 

I'm with tiger_eyes. 
For me, the increase comes from the day you agree. I personally wouldn't be looking for technicalities regardless of whether you are legally entitled to certain things. 

Dig your heels in and you will delay the increase, no doubt. 
Morally, it sounds like your landlord has treated you well.

Alternatively, give notice and run the risk of your next landlord failing to live up to your last. 


It's a very simple square to circle. 

Go the moral route and finish things here. 

Go the legal route to save a few £ and risk upsetting the status quo. 

pinkshoes

I'd just pay the usual £650 this month and wait for the paperwork. If he questions why you only paid £650, just say you were waiting for him to send the paper work through for the rent increase so didn't know when it was starting from.

I'd then put the extra aside so you can transfer it if he asks for it.

Regarding a new contract, how far are you off buying a house? You might not want to fix for 12 months if you're close to having a deposit. 

lesalanos

leighavfc said:

lesalanos said:

He hasn't followed the correct procedures with increasing the rent in that there isn't a signed written record of the agreement so you have a few choices, most of which risk antagonising the landlord which then may lead to them increasing the rent to market value or issuing a S21 notice . 

Feel free to refuse, to wait for an official document or sign to confirm or just pay the increased rent from next week. 

Thank you for your reply.

Yeah totally agreed, it's been good in both ways and we have no problem with him as landlord and the way we have been treated. For the time being at the very least we are happy to continue with the increased rent. Ultimately in the next year or so we want to buy our own place anyway if we can make that happen. 

We don't want to antagonize him of course and would like the relationship to continue as it has been.

My question to your reply would be.. would you pay the proposed increased rent on the next due date without anything official been seen or received etc? To keep him happy so to speak? Or what would you do in this situation?

Personally I would just pay it from next week.  He sounds very laid back and it's doubtful that he will send you anything more official.  He has proven to be trustworthy and honest thus far so no need to doubt anything will change now.  If you want/need something more official then just ask him for a written agreement on the new rent.  

snowqueen555

Just ask the landlord to confirm everything. Why create a difficult situation if you've already agreed to paying it?

It sucks but it is a landlord's market right now, I believe them when they say they can get £900 for it.

Stubod

..looking at an online inflation calculator, £650 8 years ago is the same value as £804 in todays money. So assuming no increase for the last 8 you have a bit of a bargain??

jj_43

Answer to: 
1) you can both verbally agree tomorrow if you wanted you. You proposed November, he agreed. It’s becomes valid once you have paid the increased rent.

Now I think your waiting for the landlord to send over documents to signed. He does not need to send these in time as you verbally agreed and probably expects you will do what you said.

But he couldn’t send over a different tenancy agreement for you to sign it would need to reflect the changes you verbally agreed.

2) No you don’t have to remind him. But you need to inform him if you decide not to do what you say. you are waiting for paperwork, which isn’t required but good practice. Communication will help here.

3) if you don’t communicate with him, any goodwill you have will go.

any other suggestion is to communicate with the landlord, he may well be expecting the increased rent to be paid, he may send over the paperwork reflecting what you verbally have agreed shortly or was going to have to afterwards.

killerferret666

Hes not rushed on the paperwork because you have mutual trust, its simply that. Your word means something to him.

If you want to stay with the same relationship you have then just pay as agreed.

Also agree youve had a steal over that time with inflation taken into account, guessing youre not on same wage as 8yrs ago. Also fair play to the landlord for valuing you in that time as well.

GDB2222

The LL doesn’t need to do a new tenancy agreement. A one line text, detailing the agreement you have already reached, would be sensible, so as to avoid any confusion.  Better, a bit of paper that you both sign detailing the change in the rent. 

I really can’t understand why you would consider, even for one moment, reneging on the agreement? Are you like that In your ordinary dealings with other people, or do you reserve this behaviour for your landlord? 

saajan_12

leighavfc said:

Brie said:

Whilst I agree that going from £650 a month to £795 must be a bit of a shock it doesn't seem to be a massive increase if you consider there's been no increase in 8 years.  

a quick calculation suggests that this is equivalent to about 5% a year - I don't know how much that differs to what other renters experience.  I know that salaries haven't been increasing by that much generally so maybe it is excessive. 

But the bigger thing is that since you haven't had annual increases of 5% and are just now jumping up quite a bit you have actually saved nearly £8k since you moved in.  

Yeah was a shock initially of course. When all things are considered then over the 8 years we have been here and no increase in that time it's probably equivalent to a fair annual increase. - well its a fair increase after 8 years but you've also not had to pay the incrementals each year.  If you had a 2.5% annual increases, you'd have the same 795 rent now, but also paid the £16/month in the 2nd year, £33/month in the 3rd year... £121/month last year  etc. 

I think the maximum they are allowed is 10% per year, or at least that is what I am told. - no, where's that from? 

Like I have said in previous posts him increasing it and by how much is not so much a problem, especially now our circumstances have changed. 

My real question is: When would be an acceptable amount of time to recieve new agreement, read and sign before next rent is due? - new agreement for what purpose? If you both agree to the increase, then that's a contract, and you can just start paying the new amount. You have notice that and can start budgeting, a piece of paper doesn't change that. IF you particularly want the paperwork, then you can write up a simple one pager saying the existing tenancy agreement stands but the rent amount is amended. 

And lest say we don't see that document before then what would people do, would they pay the current rent and then argue that technically that's what is due, or would people pay the verbally agreed rent in good faith? 

I'd send a written confirmation (letter or email) memorialisign the verbal agreement ("as discussed, the agreement dated X continues as before but we agree that the rent is amended to £795"). Then I'd start paying. 

propertyrental

There are various ways the rent can be increased (in Eng/Wales):
* drawing up and both signing a new tenancy agreement at the new rent
* relying on a rent increase clause in the existing tenancy agreement, assuming there is one. Is there: What is the exact wording?
* serving a Section 13 notice (if the tenancy is periodic and the last-signed tenancy agreement has no rent clause).
* mutual agreement
* mutual agreement could be done by letters back and forth, email, text, whatever.
* a verbal mutual agreement is as legal as a written one. The difference arises if one party denies saying "blah blah" leaving the other with the difficulty of proving what was agreed.