my landlord’s unable to absorb cost of living increase

[originstory]

so he’s raising my rent during a 1 year contract. AIBU to refuse?

I got a letter from landlord saying my rent is going up by 5% (£40). he explains that he’s no longer able to continue absorbing rising costs so has to pass it onto his tenants. regrets having to do this, feels forced into it by circumstances beyond his control etc. if I had a rolling month to month contract, fair enough, I’ve had rent increases in previous properties which is just what happens. but I signed a 1 year contract in February so didn’t think he could raise the rent during that contract? my googling appears to back me up but maybe someone will tell me I’m wrong. however, I’m considering just sucking it up for an easier life. AIBU to dispute this?

reasons to dispute it:

• I have a contract until Feb 2023 so I feel he’s being cheeky to increase rent during it. Obviously it will increase when that ends and converts to a month to month rolling contract, which is fine.
• The cost of living increase is hitting ALL of us (and will continue to get worse) and I must admit I have less sympathy for a landlord who owns multiple properties than I do his tenants
• I don’t have a high income (at all) due to reduced capacity for work due to a chronic illness, which he knows. in fact it’s so low that I started claiming UC for the first time last year, so I resent paying him an extra £40 a month that could go towards my gas bill or food shopping

reasons to just agree:

• he’s a good landlord, sorts repairs and problems promptly and reasonably
• he’s correct in that he’ll be paying more for hallway lighting etc
• he’s a nice man so I’d feel bad saying ‘i’m not giving you more money, too bad’
• 5% is a very reasonable increase so it seems stupid to cause problems over it. If it was more I’d have less of an issue saying no
• I felt lucky to find a landlord to rent to me in the first place due to my low income/ being on UC so it would be stupid to sour our relationship over £40
• If I refused to pay I’d be wondering if he’s going to get rid of me when the contract is up because I ‘caused trouble’ and then I’d be back in the position of not knowing if I can find anyone willing to rent to me. i had several agencies refuse to let me even view properties as I’m on UC (illegal but it still happens)
• honestly, I don’t like confrontation and it’s simply easier to just agree

AIBU to dispute this?

I would ask what was the point of signing a 1 year contract, if he is now asking to put up the rent

Ask him to delay until the contract ends

Breach of contract

Your contract with your mortgage provider is completely irrelevant

you’re right, on paper. but in reality, am I just causing trouble for myself by refusing? I’m really not in a secure position here. ugh

To flip it, would your LL agree to reducing the rent due to the cost of living increase affecting you? I’m sure he’ll say you agreed to the rent and it would be a breach of contract if you didn’t pay the full amount.

The posters on here saying you should pay it, would agree with him!

I am really sorry your experience of landlords is so poor, and I’m sorry you’re in such an awful situation. I just wanted to offer the other side.

I am a landlord. I have three properties, which I inherited from my late husband. I have a child I’m raising alone on the income. I live way below the minimum wage, don’t eat meat, have twice-weekly tepid showers and only heat my house to 16°C. I could have raised rent for any of my tenants and I have not. I could have evicted them and got more profitable tenants in, and I have not. I qualify for no benefits, no help at all.

What should I do?

Raise the rent?
Evict the tenants who won’t or can’t pay the raised rent and get new ones with a raised rent.
Sell a property (where presumably the new landlord will then either evict the tenant and raise rent to a profitable level)

Or should I go to a food bank next month? Surrender my dogs? I can’t reduce my expenses any further unless I sell my own house and move my child’s school. Landlords qualify for no benefits, and had no help through the pandemic. While I don’t think it’s necessarily wrong that people with assets are excluded, the logical consequence is that landlords must raise their rents to a level they can exist on.

There seems to be this assumption that landlords are all fat cats raking it in, and raising rents, just because they can. A large proportion (I think 50 percent, from memory) of landlords have a single property they are using to support themselves in some way. They are real, actual people facing all the same costs as you are, and are doubly exposed to things like interest rate rises. I don’t know what else you want us to do?

Pay it. LL is asking for very reasonable increase in line with increased costs of living to all. I know some have suggested asking that you ask LL to show you a breakdown of cost, but my lord, landlords, especially with mortgage are barely breaking even as it is and if if he feels he needs more money then he needs more money. I don't think many tenants realise that the prices of rent compared to bought prices is actually very reasonable atm. £40 isn't a large increase. When you consider that the landlord is trusting to look after an asset of theirs often worth hundreds of thousands of pounds I think more tenants should be grateful someone has a home for you to rent. A £100,000 ferrari costs around £1000 per day to rent with a £5000 upfront deposit and people pay it. Yabu, pay with thanks!

£480 extra a year -this could be taken in contract changes, moving costs etc. Your in a situation where things are well maintained, he’s a nice chap, helpful etc. You rarely hear about a landlord like this. It all depends - is this a long term idea or could you move and buy? Is the house meeting your needs? If he got mortgages the interest rate has gone up and up and he’s trying to make a living. Consider your options and maybe ring a few agencies and see what your money could rent but take care - you could end up with a house of horrors .

He can’t raise your rent during the contract unless there’s something in the contract about that being a possibility. The clue is in the name, the security of having a contract is that you know what you need to pay for 12m and he knows that you’ll be in there paying rent for 12m; those are the terms. You don’t have to ‘just agree’ for a quiet life and saying no doesn’t make you a problematic tenant. Offer to pay more at the end if you want but I think you’re within your rights to politely decline. I’m a landlord and I wouldn’t worry tenants like this. It’s not fair.

@Eeksteek you can only increase rent costs so much. If you're surviving on that money alone is there an alternative like finding a job to supplement the income from your property? It's not very sustainable to live on that money alone if it just covers your living costs. What happens when a tenant trashes the decor or the boiler breaks?

Speak to Shelter or a Law Centre.

hatchyu · Today 12:54

Like many, many others my mortgage payment has increased. Shall I just refuse to pay that as well?

This is your take on the OP?! #theyreallydowalkamongus

Could not have said it better. I had to read that several times before I realised that the poster is clearly incapable of understanding even simple concepts ...

It’s shit. I’m sorry. i think your going to have to pay it to minimise the risk of eviction in feb (and then you’ll be paying even more in cost to move and inevitable increase)
I had one landlord up mine by 40% mid contract. That was a treat the next month.

id message back and meet in the middle at £20. But expect to be hit with it in feb.

im sorry

Why not go back and say you are happy to pay it when your fixed term ends?

40%?! Mid contract?! fuck me. did you pay it? My 5% seems like a treat compared to that

Your remarks are offensive. Would you take a cut in your income, your only income? Of course you wouldn’t, yet you clearly expect me to do so. I have nothing further to say to you. Your post just speaks of jealousy and spite.

Depends on the contract. My son's tenants just signed up for 3 years with a 3% increase at each one year point which seems fair enough to me given inflation is about 10% and will be 30% in those 3 years not 9%

@Eeksteek You have three properties that you rent out. Yes, sell one. Or all three if you can't afford to maintain them. It's ridiculous to be living on the poverty line when you have so many assets. Maybe speak to someone about your financial management.

@Longleggedgiraffe If that's your only income, then you need to get a job or sell the property, or both. Again, maybe speak to someone about your financial management.

I'd email him for clarification initially - you don't have to refuse to pay it at this stage, or mention the law, or be aggressive, just say that it was your understanding that you had a fixed term contract until next February, and can you make sure that he wasn't asking for a rate rise in error. It might be an oversight on his part.

As for the landlords feeling sorry for themselves, maybe you could think about selling your properties and finding other work.

i won’t be thanking him for breaking my contract, no. obviously

£40 isn't a large increase. When you consider that the landlord is trusting to look after an asset of theirs often worth hundreds of thousands of pounds I think more tenants should be grateful someone has a home for you to rent.

£40 a month as a lot for some people, expecially as they can't afford it. And no people should not be grateful to landlords for providing them a service that they pay for. They're not doing it out of the goodness of their own hearts.

I didn’t say it’s so hard. And it’s not properties. It’s ONE. provides me with an income. Tell you what. You take some of your income, say £300 a month and go and give it to the homeless person on the street, If I can’t make a decent living out of my income and be expected to subsidise someone in these hard times, why shouldn’t you?

I would do this too, maybe start with - do you mean an extra £40 at the end of the fixed first year? I suspect he doesn't realise that he can't raise it now.

I think this is the way to go. Clarify with him if he meant to include me in his tenant letters as I have a contract until February next year and see what he says

I think weighing all things up I’d probably end up paying it. Rental properties are so hard to come by here. But I’d politely ask him if he wanted you start paying in February, or start paying from next month, in which case should you sign a new year long contract taking you up to august 2023 (and could he guarantee no further increases in that time).

Didn’t have a choice. It was august, my youngest was enrolled in the local school, done all the prep days, uniform bought, all prepared. I couldn’t do it to him.

thing that pissed me off more was them selling it a few months later to developers for “an offer they couldn’t refuse”
The discussions would have been happening already, they just wanted to extract the maximum they could for the last few months.