Rent increase after 11 years at same level

born_again

So how much do you pay now?

robthenewboy

https://forums.moneysavingexpert.com/discussion/comment/82165075#Comment_82165075

£1k per month.

born_again

https://forums.moneysavingexpert.com/discussion/comment/82165076#Comment_82165076

the average UK private rent has increased by approximately 29% to 35% over the last 10 years.

Of course some area's have risen far higher.

robthenewboy

https://forums.moneysavingexpert.com/discussion/comment/82165080#Comment_82165080

Which ties in the the numbers I'm talking about, especially when considering the informal maintenance agreement and the work he'd need to do on it (while living abroad) to be able to rent it out to someone new.

kimwp

Could you staircase to full ownership?

robthenewboy

https://forums.moneysavingexpert.com/discussion/comment/82165090#Comment_82165090

Not familiar with that term. We'd love to be able to own it, but it's probably worth getting no for 400K now. The deposit is beyond our reach and I'll be 57 at the end of the year. I don't know of any other options that would be available to us.

Vitor

I'd research comparable local properties, taking account of the condition of yours, then make a sensible opening offer. If £200–£300 extra is genuinely affordable, that's a reasonable starting point for discussion, although whether it's fair depends on the existing rent and local market.

I'd also avoid making maintenance responsibilities a bargaining weapon. Both parties appear to have benefited from the informal arrangement, and preserving that goodwill could be worth considerably more than winning an argument over minor repairs.

One unintended consequence of the Renters' Rights Act is that landlords now have an incentive to pitch proposed increases towards the upper end of market rent.

With increases restricted to once annually, there's little commercial advantage in proposing a modest increase if the landlord believes the market would support substantially more. If challenged, the tribunal can reduce the proposed rent to market level, but cannot increase it beyond the landlord's proposal.

That risks encouraging precisely the behaviour the legislation was intended to discourage, particularly where landlords previously exercised discretion and kept rents below market levels.

vic_sf49

I'd be tempted to say, (figures made up) "we offer £250 per month increase, and keep on with the informal repairs. If rent is raised above that, all repairs revert to the landlord".

HouseHuntingAmy

He's negotiating like someone who wants to keep you, which is a much better position than most people get - so negotiate back the same way. A couple of thoughts on the maths: his "3-5% every year" figure is backwards-looking compound interest, not market evidence. Work the other direction instead: look at what comparable 3-bed detached houses are actually listed at near you today, then discount for the condition issues (windows, shower) and for what you save him. A landlord abroad with no agent avoids voids, agent fees and the lottery of new tenants who might not treat the house well - a reliable sitting tenant is worth real money, so your offer should reflect that.

Your instinct to document the house's condition and the maintenance split is exactly right, and this is the moment to do it - whatever you agree, get the new rent, what you will and won't maintain, and how future increases will be handled down in writing, even if it's just an email trail. Goodwill that has survived eleven years on a handshake deserves eleven more on paper.

anselld

On another point, given the informal arrangements and the lack of Agent, I hope the Landlord has an NRL1 form in place with HMRC and that the OP has confirmed that fact. Otherwise there are serious tax consequences for the OP (Tenant), not just the Landlord.