Rent increase after 11 years at same level

robthenewboy

Hoping for some sage advice. This is a slightly different scenario to most rented properties.

Background: We've rented our current home (3 bed detached) for more than 11 years. In that time the owner has never increased the rent. This has come about as an understanding formed between us that we'd take care of small maintenance issues. This wasn't laid down in black and white but gradually came about after several years. We explained a while back that were happy with this arrangement but that any more 'serious' repairs would obviously go back to him, which is was fine with. There's also no agent (he employed one only for setting up the initial tennancy) which I suspect is one of the main reasons we haven't had constant demands for increases.

From our perspective we've had a good deal in a house that we really love living in and we very much appreciate that we've been 'left alone'.

He's mentioned selling the house in the past and at one point even got a surveyor in, but it never came to anything. However last year he mentioned that he was having more difficulty getting a mortgage on the place (he lives abroad) and that he may need to sell when his current deal expired (this month).

Roll forward 18 months to now...

We've just had a communication from him explaining his situation. He's now on the fence with selling and is talking about a negotiated rent increase to cover increased mortgage rates etc. Understandable.

The tricky bit - and this is where I could do with some advice - is that he's asked us to essentially make him an offer and to negotiate a fair increase going forward.

He's worked out that if he's raised the rent 3-5% each yeah it would now be between 400 and 700 per month on top of what we currently pay, but he then followed that by saying:

"So to be fair I wanted to ask if you could take a look at the market and come back to me with what you think would be a reasonable rent for you to pay for you to feel like you were giving me the incentive to keep renting, but also for you not to feel like the increase was so much that it would be better for you to look for a new place, if you are happy to stay and keep maintaining the house."

My initial thoughts on this are:

• An increase of 3-5% each year would have probably been be a bit excessive, especially since interest rates only began to increase in 20/21. We moved in in 2011.
• If he's expecting 'market rates' then any issue of us helping out with simple maintenance goes out the window and all maintenace and the arranging of it defer back to him.
• We can afford more - we had a 200-300pm increase in our heads - but an extra £700 is out of the question considering our income and the state of some parts of the house (it could really do with new windows, a replaced shower and a few other things that we can live with but probably wouldn't be acceptable as a new property on the rental market).
• If we were to pay more then we should document the current condition of the house and establish that as a baseline, detailing exactly what we will and will not be responsible for.
• If he were to sell he'd now need to give us 4 months notice.
• NOT moving house is our ideal at the moment. We love the house and the flexibility of the arrangement.

TL:DR - landlord wants a negotiated rent increase on a 3-bed dethatched after 11 years of no increases, but with an informal understanding that we take care of light maintanance. We could do with some advice on what to offer.

Edit: Us buying the house is not an option due to costs and my age. We could probably afford the monthly payments but the deposit is out of our reach. I'll be 57 end of this year.

WYSPECIAL

If you like living there is buying it an option for you?

robthenewboy

https://forums.moneysavingexpert.com/discussion/comment/82164981#Comment_82164981

I wish. Although we could probably afford the payments the deposit is well beyond out reach. I'm also 57 end of this year.

FrugaiMacDugal

If he is still on the fence offer to buy.

robthenewboy

https://forums.moneysavingexpert.com/discussion/comment/82164983#Comment_82164983

Not an option

LightFlare

offer the 300 and continue with the agreed maintenance

How much more would market rate actually be ?

robthenewboy

https://forums.moneysavingexpert.com/discussion/comment/82165005#Comment_82165005

Kind of hard to pinpoint. I'm seeing different 'average' figures on different website, and averages get massively skewed anyway. I reckon maybe 1400-1500 if it were to an acceptable spec but I'm really just guessing.

FlorayG

Do you have receipts for all work you have paid for? Add those up and include reasonable costs for work you did yourself ( including labour costs at the rate current at the time)

Work out what percentage of each months rent that is. This is how much below current market rent you can expect to pay. Then point out all the work he would have to do in order to re let at full market rent. Offer what you can afford and, as it seems you have a good relationship, make it clear that it's your best offer.

Of course if it's not enough then he may decide to sell but there's nothing you can do about that if you can't afford more. I think a lot of people are going to be in your situation soon and I sympathise; I'm a landlord and it's a tricky balance of making increases to cover contingencies without seeming to be money grabbing

robthenewboy

https://forums.moneysavingexpert.com/discussion/comment/82165008#Comment_82165008

Thanks. Yes, we have receipts for everything.

I would take an educated guess that if it were handed to an agent for renting they'd be expecting a new shower unit, some of the windows replacing, some of the kitchen units replacing and a fix to the porch roof which he's well aware of. Not a small amount of work or cost.

anselld

It sounds like you both agree market rate would be more than £300. However you have said you can afford £300 so offer £300 and hope that is enough to encourage the L to continue. The cost of moving would be more.

The maintenance arrangements are informal so there is no need to document anything further. When the contract does eventually end you will be liable only for the contractual liabilities, ie actual damages less fair wear and tear, NOT general repairs and upgrades.

robthenewboy

https://forums.moneysavingexpert.com/discussion/comment/82165045#Comment_82165045

Yes indeed. What we actually do is put aside a monthly amount which is kept separate and is only for house repairs. We had a couple of fence panels replaced. We've had the plumber out once or twice for leaks. We arrange and pay for the annual boiler check - in fact we put a new boiler in early '25 when the old one gave out. We worked out that if we paid half and got the LL to pay the rest we'd still be quids in given no rent increases for the previous 10 years. He agreed and our fuel costs went down a little bit with it. It's all a bit of a balancing act.