Letter to agency on renewal and rent increase

Mimi123456

Hello all. 

I need some help/another pair of eyes with regards to a letter negotiating a renewal on my rental property. 

I have been renting for 3years now and I like the property. Last week the agency reached out to me about my fixed term ending soon and whether I would like to sign for another year.
I am afraid they will try a sizeable hike to the rent - they did it to me twice already and I want to set the record straight this time round and manage their expectations in that regard before the landlord comes up with their crazy number.

How does this sound for a response email? Too much or good enough?

Hello

Thank you for your letter. 

Yes, I would like to renew for another year. But unfortunately I won’t be able to pay much more than I do now. 

Last year the rent was raised by 6.8% and the year before by 15.8%. That was on top of an adequate starting point. 

As a result I am now paying above what the average price for a 1-bedroom is in the area. Last year I reluctantly agreed to a raise above the RPI (even though that is what it said in the contract about the rent review) and over the past few months I have been feeling somewhat bitter speaking to neighbours in the building who pay much less or seeing adverts in Zoopla/rightmove with lower rents. 

If the landlord are okay to leave the rent as is I am happy to sign the extension as soon as suits. 

Many thanks,

Xxxx

elsien

 Just to check you know that you don’t have to sign for another year and you can go into a rolling contract if you prefer? 

Mimi123456

elsien said:

 Just to check you know that you don’t have to sign for another year and you can go into a rolling contract if you prefer? 

Yes, that will be my course of action if the negotiations go bad. If they are very greedy and would rather kick me out in hope of higher rent with new tenants, then at least I will have more time to find a new place whilst they are doing the S21 process after fixed term ends

but ideally i would like to maintain good relationship and extend for another year. but also set boundaries that the rent has to be reasonable

Voyager2002

Mimi123456 said:

elsien said:

 Just to check you know that you don’t have to sign for another year and you can go into a rolling contract if you prefer? 

Yes, that will be my course of action if the negotiations go bad. If they are very greedy and would rather kick me out in hope of higher rent with new tenants, then at least I will have more time to find a new place whilst they are doing the S21 process after fixed term ends

but ideally i would like to maintain good relationship and extend for another year. but also set boundaries that the rent has to be reasonable

You don't need to "sign for another year" to maintain a good relationship. The only reason they are asking is that the agent keeps the fees.

Mr.Generous

The renters rights bill will over ride all tenancy agreements shortly anyway, so I don't see why anyone is doing paperwork for set tenancies.

Myci85

I find it off that they are asking you if you want to renew for another year but not telling you at what rent. Is this through an agent? I always used to get a letter offering whatever the landlady had chosen to offer, I.e. 6 or 12 months or rolling, and at what rent. 
I think in your situation I would first off just reply asking them to clarify what the monthly rent would be if you renew, and then if they offer an increased rent, then send your above response. 

FlorayG

New AST or rolling contract, either doesn't prevent them putting up the rent. If you agree to AST ask for a get-out clause if YOU want to give a month's notice. If the rent goes up to above market rate you can apply to the rent tribunal and if you have good evidence that it's well over market rate they will set a more reasonable rate
What other could you do? If the LL puts up the rent you can only go to the tribunal, AST or no; or move elsewhere. Sad but true

RHemmings

Mr.Generous said:

The renters rights bill will over ride all tenancy agreements shortly anyway, so I don't see why anyone is doing paperwork for set tenancies.

The agent may not be concerned about that if the legal change occurs after the agent has received their fee. 

FlorayG

RHemmings said:

Mr.Generous said:

The renters rights bill will over ride all tenancy agreements shortly anyway, so I don't see why anyone is doing paperwork for set tenancies.

The agent may not be concerned about that if the legal change occurs after the agent has received their fee. 

In fact, many agents may be getting as many new AST as they can while they can!

saajan_12

Wouldn't over think it..
* if you're confident you'll want to stay for a year then just reply "Yes". If not then reply "No, we'll let's just leave it rolling". 
* If / when they revert with a higher rent, just say "ah no, I'm happy to renew at the same rent which is in line with the going rate in the area." 

There's not really going to be a perfect letter you can craft to change the course considering this LL / LA have been pretty on the ball with rent increases at least in line with inflation so it'll already be on their mind. Doesn't mean you can't stay firm. The history of increases is rather irrelevant, and IMO will just bring more factors into the debate. The point is just that the rent is currently in line with the market, so a S13 notice would fail challenge at tribunal and if they evicted you they wouldn't get any better. 

Mimi123456

Thank you very much all!
 I think I will reply for now that I am ok to commit to another year if the rent stays flat. 

And see what the reply is. Then go in with my arguments as I am sure they will press on with a hike

Maybe I will pause and reply to them in a few days. dragging the time a bit would be in my interest as in March there will be a completion of new building in our development so I expect a bit more supply of flats