Sudden huge rent increase

[livyaz]

Hi, we have rented out home for almost 2 years now, all fine and very average for area we are in (far north).
Yesterday I got a text out of the blue from the house owner, saying that he was fed up with the letting agents fees and was terminating the contract he has with them.
He also said that he plans to increase the rent from £900 pcm to £1250pcm as "everything is going up in cost"
What on earth do we do??
We have never had an issue with anything, had a couple of leaks over the last 2 years, and a valve on a radiator replaced.
During house inspections the letting agent commented that it was the best kept rented property they had seen, I can't understand how such a hike can be justified, any advice how to respond?

I'm not sure he has to use the agents people though for repairs and certificates. I went with an agent when renting my property out and used my own if I found one who was cheaper. They were fine with it.

I think maybe he's throwing his toys out the pram.

This is why it really annoys me when the media are all over how terrible it is that mortgage rates might go up by a minuscule amount. Renters put up with unbelievable shite and there should be rent controls to stop this kind of nonsense!

If what you're paying IS market rate, then he's an absolute fool. Having a good tenant is worth its weight in gold!!

I know you don't want to move, but have a good think. Without the agents in the middle he could be a complete nightmare. Do you have kids? If you do, is there anywhere up for rent that's ok for school commute?

Even if there seems to be a lot to rent, be careful because there are a lot of people struggling to get places. I'd definitely go & see the agent asap, I wouldn't mention the price hike, I'd just say he's made you aware that he's dropping the contract with them & you'd rather rent a place they manage (even if you're not keen on them!) so want to know what they have on their books & if you meet the criteria for it.

Moving IS a hassle, BUT it's a good chance for a fresh start/clear out and it's over & done with, but a shit LL is an ongoing hassle!!

If you decide to stay then do nothing about his text, force him down the legal notification route!

If you decide to go, get your new place confirmed before you tell him!!

Good luck!!

I think that's a very large increase in percentage terms.

However, near me rental prices have escalated enormously over the last 24 months. Properties that were going for £900 are now at the £1200 mark. There is huge demand and virtually no supply at all.

The sales market has gone crazy so that people wanting to buy are often selling and moving into rental for short periods so that they are cash buyers - most people in a chain won't even get a viewing. So you have your normal pool of renters plus a load of people who wouldn't normally be in rented all vying for the same properties.
There have been many threads on here from people - professional couples. no kids or pets, who can't even get a viewing on a rental.

I expect some landlords are being greedy and trying to push their luck. I hope they get some karma in the future. Right now though, if I were you, I would do research on the rental market and work out if there is anything out there locally at all? If so, are you prepared to move etc?
In my case, there is nothing at all near my kids less than 2k a month and none in an area with transport to school. And so I stay and get to see my kids or move and I won't see them at all. So I have to suck up rent hikes. I am a sitting duck. I did have a rise this year but it was very reasonable.

As A landlord I’ve had to make a decision on a rent increase. Like many I made no increase during the pandemic.
I had to install a new boiler. EICR reports and changes in legislation meant another £1500 bill.
Rents have risen and the property is now £300 below market value PCM.
Agent said tell tenant pay it or leave. Which seems harsh.
I’ve decided on £100 increase.
I would negotiate with your landlord if you can,

That’s awful op

As soon as the wider public started becoming aware of the cost of living squeeze (am old enough to remember the credit crunch too) I knew this was going to happen. The rental market is a broken system because renters are basically paying off other people’s mortgages. Your landlord has realised his mortgage is going to rise as the age of cheap credit is over and he basically wants you to pay the increase.

It’s all so Dickensian.

I also wouldn’t be surprised if the estate agents were not supportive of him increasing the rent so steeply which is also why he is sacking them. Don’t get me wrong - my experience of estate agents isn’t good so I don’t think they are wonderful and looking out for you. But they would also know a rise of that amount isn’t justified or in line with the market and they would have probably told him that.

Also - yes you can contest a rent increase. But in reality they would likely then serve a s.21 anyways.

Your landlord sounds like a very typical “accidental” one. And without a managing agent In between I’d be really wary of dealing with them.

Good point re the deposit. Get that checked out as it needs to be somewhere safe and not returned to him as he seems skint and you’ll never see it again.

I too would suggest speaking to the letting agents to see what they have on their books. They will recommend you to any ll with your track record and can presumably port your deposit to the new account.

Then depending on what they have that you like (or not), id be telling the current ll that CPI inflation has risen so far by 4.8% in the year to December according to ONS. That is under £50 on £900. And while it’s set to rise more over the next few months, it’s unreasonable to suggest that it will rise sufficiently to cost £300 !

That you are currently paying the market rate for a property in this area and that his proposed price would buy a larger x bedroom house.

That you have been excellent tenants who have caused him no bother and he will be lucky to find such good ones again. That bad ones who don’t pay can take up to a year to get legally evicted with costs of unpaid rent and legalities to get them evicted costing landlords many thousands of pounds in fees and his mortgage arrears etc. So he may wish to keep this in mind re future tenants as you cannot afford the excessive rise he plans and that unless it’s an inflationary rise you will be looking elsewhere.

I live in greater London
2 months before the pandemic hit. We moved in this 2 bed house (it is small) and we paid £1200 a month. That was the average market rate for this property.

The landlord increased our rent by £200 this month. We've had no choice but to accept it but we are looking to buy up north anyway this year (where I'm originally from)

I was going to challenge it but now on right move the rental prices gone up soo much that our house is estimated between £1400-1700 rental value! It's an absolute joke. So I know for a fact next year he will try raise it even more!

So sorry you're going through this.
Which area do you live in?

I've logged in for the first time in ages to respond to this one.

Unless you've been given the rental increase notice on the correct form (a PP has said what this is and the proper notice) then I would ignore the text message and continue with your current rent. I wouldn't even respond. If you flag that it's not the right process then that gives LL the chance to work out what he should do the serve the correct form.

Also contact or look at shelter and CAB websites to know what the rules are, so you cannot be bullied by your landlord.

Good luck. Moving costs are not cheap but certainly less than 12 * 350 for one year!

Did you sign a new agreement when the first one ran out, OP, or are you on a rolling (ie "statutory periodic") tenancy?

The processs is different depending on the agreement. It would be worth checking with Shelter, to see what your rights are.

If you really like where you are, and are happy with him otherwise, it might be worth trying to negotiate with him for a smaller increase, especially if you can show him that the increase will make the new rent absurdly high compared with local rents generally.

The lack of tenants' rights in this country is a fucking disgrace imo. I've been privy to some appalling behaviour on the part of landlords.

@Totalwasteofpaper

This happened to me about 10 years ago. We counter offered and they declined - so I found another rental and moved. When we moved out the flat was still not let so the cost of the void in rental was greater than the £ increase they were after for the year term.

Unless there is rent control in place (as in Ireland) then it is what it is you accept the new contract terms or move.

This. My friend did this. She was renting a 1 bed flat for £550 a month - in Stafford - and it only went up from £550 to £575 in the first year, then up to £600 in the second (still a lot I thought but it was near the train station and all the shops.)

Then at the start of her third year he put it up to £750! For a 1 bed flat in the middle of a small Staffordshire town. No offence to Stafford and I like the place, and its people, but it ain't no London, Brighton, Edinburgh, or Cardiff! No reason for that price at all.

So she left and went into a house share where she pays £400 a month for everything. All bills including internet. She's loaded now! The flat she left EIGHT MONTHS AGO is still empty! All the LOLs! He advertised it at £750 a month, and has dropped it twice ... to £700, and then £650. No takers. Still empty ha ha!

As has been said @livyaz it depends on the contract, but I am sure he can't just bump it up like that! Can he?

I would start looking for somewhere else.

Also £1250 is VERY high for the north, even your current rent of £950 is quite high. Again, no offence to the north but things are usually cheaper there, unless it's bang in the middle of gentrified area of a city.

“Dear Landlord,

We were surprised to receive your text message regarding your intention to change our rental agreement with you.

We very much enjoy living in this property and have made it our home, looking after it accordingly. We are model tenants, always paying our rent in full on time and have been commended by the letting agency for being one of the best tenants they have ever dealt with.

Therefore we are shocked that you would risk losing us as good tenants in order to gamble on charging well over the market value for a flat in this area.

We hope you understand that financially we would be very foolish to pay the 40% increase you suggest as it is hugely over the market value for this property and would mean we were paying an unnecessary £4250 on accommodation over a year. This is obviously far above inflation and with the price of living and energy costs rising, it’s just not good financial sense for us (or indeed any other propective tenant). Even factoring in the costs of moving, we would still be financially better to move into any other similar property in the area as you would have made yours very uncompetitively priced.

We would really hope you would reconsider your intention, as we are very happy in the property have no intention of moving , meaning that you still have guaranteed income from your flat, avoiding any costly empty period when you try to find new tenants at your new uncompetitive rent.

We would be really happy to negotiate a rent increase in line with market value and inflation and would suggest “£?”

If this makes good financial sense to you then we’d be happy to accept and continue looking after the property. You would need to serve us a Section 13 Notice to increase the rent and allow a full rental period of notice before the new rent can take effect.

If after careful consideration you still feel that you want to risk acting as an agent yourself to rent a property 40% over the market value in the current financial climate, then we will sadly need you to start eviction proceedings towards us. We understand that these can be costly and take a long time and would urge you to reconsider.

All the best

Us “

I’d email something like this with appropriate links to information about legal processes etc.

Please read the links, I’m pretty sure he can’t randomly increase the rent by that much, isn’t he illegal? Ultimately, he can ask and your only recourse may be to move.

As a landlord, my agent charges 8% a month, but I’ve told them they’re only to use the workmen I use because they got a sparky in who claimed to be there for 4 hours-tenant says 45 mins max-and charged £500 to put wires in the wrong place and lie about circuits being burnt out (they weren’t)

@deeedeee That's fucking brilliant!

Really well put. Articulate, friendly, and genial, but with several cheeky veiled threats, and warnings. LOVE IT!!!!

Send him a selection of properties in immediate are that match yours showing him the average rent

:-D

Fist in a velvet glove!

I’d also put in a paragraph about how you’d feel more confident in continuing your excellent tenancy if the landlord was to reconsider the idea of no longer using the letting agency. Because you have an excellent relationship with them and would be happy to continue that relationship in one of their competitively priced competitive properties. Assure the landlord that the agency have been very proffessional in dealing with lodging your deposit in the appropriate scheme, dealing with all the essential official paperwork and all the annoying tasks in renting out a property professionally and always respond to your myriad enquiries and proper legal procedures promptly and without bothering him . Maybe also agree with his judgement though that they don’t alwAys choose the best value tradesmen, you’re sure that if he continues to substitute his choice of tradesmen the percent the agency charge is money we’ll spent in terms of property management.

LL can raise the rent once in a 12 month period. It can't be more than other similar properties are charging. Look on Rightmove. What are other similar properties being rented out for? There will be your answer. Mortgage rates are going up 2 rises in 2 months and most likely 2 or 3 more rises this year still to come. LL are often not on fixed mortgage rates. It seems a big rise but can you find similar accomodation cheaper? If so hand in notice and move. Did you know housing associations increase rents every year. Did you get a rent increase last year? If not it will be a steeper jump this year.

Brilliant responses Thankyou!
I actually shed tears yesterday when I got the text, and while I'm not guaranteed of anything (even staying here), you have given me a little hope in how to respond
My fear and sadness is turning to anger at his blatant demand
I'll not speak out of turn at all, but I'll be sure to respond to him with some of your points
I'll speak with the letting agents and shelter tomorrow
This has been so appreciated

If it is above market rate, move. Don't waste your time on a rentier trying to fleece you. The chances are that with the agency out of the way the response to problems in the house will get worse as landlord will need to sort it all himself.

Letting agents put deposits into deposit scheme. LL won't have access to that.

Don't be tempted to reply until you have taken proper advice. The best move may be to ignore him and not pay the increase, make him do all of the hard work while you look at other properties either for comparison for a challenge or to actually move.

To be honest even if you manage to bring him to his senses I’d still start looking for somewhere else as he’s shown his true colours . What a twat.

Definitely don’t send that suggested letter - it’s really pass agg and will just piss the LL off. You can’t ignore the text, but I wouldn’t be offering any advice or pointing out the error of his process. The way I would handle it is to go back and say that the increase is unacceptable, but that in line with market rent, a figure of X would be ok with you. If he comes back and says no, wait for your section 21, whilst continuing to pay rent at the previous figure. If he agrees, wait for the section 13. At no point chase or request the correct notifications - let him do the work. Keep paying your rent, looking after the flat and enjoying your life. I would also go to the letting agents and explain your situation. Perhaps they can help you find somewhere more suitable - or at the very least write you a decent reference, in case the relationship with the LL breaks down completely - it’s entirely legal to wait for eviction, and it may buy you some extra time, but having it on your record (even though it’s not your fault) will make it harder to rent in future. Not fair, but true. Good luck.