Negotiating rent increase

Mimi123456

Hello forumites,

My rental contract is coming to end end in 2.5months. A few days ago the agency emailed me asking if I would like to renew. I replied that I did want to renew and a few hours later they slapped me with a demand to increase rent by >25%.

I was quite shocked as when I got the place last year I already bid above the asking price so what I pay now is probably already on the high side. 

Two questions:

(1) what in your view is a reasonable increase in rent? assuming what I offered to pay at the start of the contact was fair value I was getting ready for up to 10% increase but hoping for 5% taking into account I have been a good tenant
(2) do you think I should drag my feet a bit in negotiations? At the moment there isn’t much on the market in my area so only a couple of ads on zoopla that I can use to present to them as evidence that what they are asking is inadequate. Is January normally a good time to look for a flat?

Thank you!

RAS

Why did you want to renew, rather than let the tenancy roll over into a periodic tenancy?

Which you could still do if you would rather look for somewhere cheaper.

Mimi123456

@RAS yes periodic tenancy would be ideal. But in practice this won’t go well with agency and LL. If I just stop responding to them and wait for fixed term to expire I expect to be harassed with calls and pushed to either renew or leave. 

propertyrental

How does your rent compare locally? Gather some examples and if the new proposed rent is higher, show the agent.
Can you negotiate with the LL as opposed to the agent? Agents don't care if you leave - they get more fees from the LL for finding a replacement.
But the LL won't want you to leave as that costs him money!

dimbo61

What area do you live ?
How is local demand ?

RAS

Well, of course the EA want you to renew as that's how they make their money, even more so with a declining sales market.

If the LL wants you to leave, they need to be absolutely certain that all the documentation needed to issue an S21 is compliant. And if the LL wants to increase the rent, they need to make sure they issue the correct notice.

Mean-time you've got a few months to find alternative accommodation, even if they are compliant. More so if they've messed up.

So read your contract, does it say anything about notice given by the tenant or Ll if the contract is periodic?

Mimi123456

propertyrental said:

How does your rent compare locally? Gather some examples and if the new proposed rent is higher, show the agent.
Can you negotiate with the LL as opposed to the agent? Agents don't care if you leave - they get more fees from the LL for finding a replacement.
But the LL won't want you to leave as that costs him money!

I found a couple of examples to show them for pricing comparison. But now there aren’t many flats around in the area.
So just prepping now what other arguments to put in my favour.

Unfortunately I don’t have access to the LL. because the agency are managing property on their behalf the contact details on my contract are those of the letting agency. Only know their name.

Yes I think you are right. Given their bold request I’m suspecting the agency do not mind me out as that way they can get £££ from LL on advertising, new tenant search, checks etc etc 

Mimi123456

dimbo61 said:

What area do you live ?
How is local demand ?

North-East London. Local demand is good perhaps not at the price they are asking but who knows, maybe they can find someone really desperate or who just arrived in the country

RAS

It costs £3 to check the Land Registry. Of course it's possible the LL is registered as owner at your address, or that they are using a company (in which case check Companies House).

macman

Mimi123456 said:

@RAS yes periodic tenancy would be ideal. But in practice this won’t go well with agency and LL. If I just stop responding to them and wait for fixed term to expire I expect to be harassed with calls and pushed to either renew or leave. 

It doesn't matter what the agency thinks. You simply respond in writing saying that you are happy to go onto a periodic tenancy and don't wish to contract to a new fixed term.. Ignore any subsequent calls. They can't 'make you leave'. If the LL wishes to pursue it then they would have to issue an S21. Evicting you will take months and cost them for re-marketing and a void period.
You have a legal right to know the name of the LL if it's not on your TA, which it should be. The address can be that of the LA. Request it from the LA, giving them 21 days to provide it. If not complied with, they are committing an offence, and you can lawfully withold rent after this period if not supplied.

Mimi123456

RAS said:

It costs £3 to check the Land Registry. Of course it's possible the LL is registered as owner at your address, or that they are using a company (in which case check Companies House).

Thank you. Didn’t realise that it has the address too. 

I wanted to check LR some time ago but the site was breaking down on that particular address. Will check Companies House, thanks for the tip!