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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To increase lodger rent in October with energy increases??

45 replies

yellowcourgette · 11/08/2022 22:44

Hi everyone,

I have a moral dilema - I am just about to take on a new lodger, starting 1st September. I agreed to rent her the room before the new ridiculous energy hikes were anounced.

I would like (read: need) to increase the rent in line with this increase in energy costs. I essentially need to do this in November, so I'd like to put it in the contract now so there's no nasty surprises for either of us. Nothing has been signed yet - I'm just reviewing the contract to send over.

I am stuck between feeling like I cannot cover 'her share' of the increase in energy (i.e. what she'll use) and that this is a fair request, and feeling awful for springing a price increase before she's even moved in! I feel like a shitty landlord but I simply cannot cover the additional cost increase for another person.

I was thinking of saying something like the rent will increase by 30% of the increased costs (roughly calculated from when I've been here alone vs having a lodger) but putting a cap at X amount (thinking £50).

Can people point out if I am BU with any of this, and if so what your advice would be?!

OP posts:
Hotandbothereds · 11/08/2022 22:47

Can you split out rent and utilities rather than lump it together?

Then it could be X flat rate rent, 50% of utilities and if that total goes up it goes up?

Scottishskifun · 11/08/2022 22:48

Yes what your proposing is unreasonable I understand your predicament, you need to factor in the £400 assistance which will be coming to your bills in your calculations and also be upfront now and say the price previous did not reflect the price rise. Be prepared they may walk away.

Butterflyfluff · 11/08/2022 22:53

Definitely BU

It’s been well publicised that energy costs are going up.

They might be more than expected but it’s been known for months the cap will be well above £3k.

Which is ridiculous but that’s another story - it’s still been plenty of time to have factored this in

If you tell your potential lodger this and they tell you they won’t sign, you’ll likely be worse off anyway as you’ll need to find someone else - unless it’s a very desirable property.

Lou98 · 11/08/2022 22:59

I'm also wondering when you agreed to rent her the room if you really had no idea of energy prices increasing in October as it's been well known.

I think it would be better to give the lodger a set monthly rate rather than saying 30% of increased costs as they may well find they can't afford that when they don't know what the amount will be in advance. It would be unreasonable if they move in and then had to move back out after the increase as you haven't made them aware exactly how much they'll be paying in advance.

I personally think you need to let them know now, before they move anything, exactly what their monthly total will be so they can decide if they still want to rent the room or not

Original poster
yellowcourgette · 11/08/2022 23:03

You are right that it was always, coming, but it was predicted to be a lot less when I advertised the room. It's the past few days where it's been announced to be ridiculous. I have already factored in the grant, but this is spread over 6 months and after working it out it will not cover the increase.

It's not like I'm making extra money, I'm just trying to minimise the extra hit that the extra person will bring. Like when shops have to put up their prices to cover increases in costs. I don't want to do it but I have to; having a lodger is a necessity at the moment to stay afloat.

As an example to illustrate... if the second person has a shower and it now costs £1.20 instead of £1, it would be fair to increase the rent by 20p but I would like
to propose somthing like 10p.

I want to be fair, but I can't just take the increase for both people, and I just need to find a fair way for both of us.

OP posts:
Original poster
yellowcourgette · 11/08/2022 23:11

Lou98 · 11/08/2022 22:59

I'm also wondering when you agreed to rent her the room if you really had no idea of energy prices increasing in October as it's been well known.

I think it would be better to give the lodger a set monthly rate rather than saying 30% of increased costs as they may well find they can't afford that when they don't know what the amount will be in advance. It would be unreasonable if they move in and then had to move back out after the increase as you haven't made them aware exactly how much they'll be paying in advance.

I personally think you need to let them know now, before they move anything, exactly what their monthly total will be so they can decide if they still want to rent the room or not

Just answered the first part above.

I agree that a set monthly rate would be much better - sorry, I didn't explain very well, but when I want to do is use October to figure out what the hit is and then use that to work out the increase, but set a cap on it so it's fair. Then that would stay the same. So just a standard rent increase. I haven't changed the rate of my room for 18 months and have really tried to absorb the increase but this winter I just can't do it.

Just to reiterate, this isn't about making more money on the rent, it's about covering some of the extra usage by the additional person, which I do think is reasonable, because costs are a key factor in rent price. I am prepared to not cover all, but I want to find a fair way to try and share some of it.

I have sent her a message saying that I would like to have a chat about it and whether she would be open to it, and to look at the options that are fair for both of us. I've highlighted that it's a shared resource which is why we need to think about it together, and apologised that I've had to open the discussion on it. Hopefully that is a good start but I just don't know!

OP posts:
Original poster
yellowcourgette · 11/08/2022 23:18

Can I please ask why you think quite strongly I am BU? My understanding is that the 89% is a recent thing (last week or so) and it was previously 50% which I was going to just lump, but it's just too much now! :(

OP posts:
Itreallyistimetogo · 11/08/2022 23:42

Yabu, I would not sign a contract with someone that moved the goalposts like that.

Original poster
yellowcourgette · 11/08/2022 23:45

It's not really about moving goalposts, it's about how to approach a reasonable discussion about it and what would be fair to both people.

OP posts:
EasterIssland · 11/08/2022 23:46

Is there going to be a second person ? As you’ve not mentioned it at all in your op

and yeah you’re bu. I would walk away if I could as you’d not gimme any confidence that you’d not increase the price again

WTF475878237NC · 11/08/2022 23:50

It's quite common for a nursery to send an updated fees list (ie price hike) to parents of toddlers who haven't even started yet. I don't think you are unreasonable. The specific rates are going to be much higher than predicted two months ago.

CornishTiger · 11/08/2022 23:50

What kind of contract are you doing?

Original poster
yellowcourgette · 11/08/2022 23:51

@CornishTiger it's a rolling 1 month contract

@EasterIssland not quite sure what you mean but it will be me and one other person. She'll be working from home 2 days a week, home all day at weekends.

OP posts:
MidnightMeltdown · 11/08/2022 23:53

YABU it's too late to change it now if you've already agreed the rent. I would wait 6 months and then maybe consider it if you are very out of pocket.

CornishTiger · 11/08/2022 23:59

www.citizensadvice.org.uk/housing/renting-a-home/subletting-and-lodging/lodging-index/what-rights-do-lodgers-have/

Just make sure the accommodation charge review and notice periods are clear.

TimboWimbo · 11/08/2022 23:59

Could you work out how much of the current rent is going towards energy bills, then take that off so the actual rent is reduced? Then split the energy bills with her according to actual usage? You could pay a bigger proportion to cover the standing charges. I think that if it was me, that would feel reasonable.

Grimchmas · 12/08/2022 00:00

I think at this late stage she will feel screwed over and resentful. She won't have much option but to move in but you might find she leaves again sharpish if she can find cheaper elsewhere.
I think you should cope for 3 months then give 1 month's notice of whatever price rise you need to put in.

Strictlyfanoftenyears · 12/08/2022 00:01

Thats crazy, is she doesnt agree and you have to readvertise, you could lose a months rent anyway (which is more than the rent increase........

latetothefisting · 12/08/2022 00:02

I can see your point about why you need to raise it, but don't think it's fair to say I will be increasing your rent from november, but by an unspecified amount depending on what the usage is in october. Will you then put it up again when January is more than November? What if, hearing this, she deliberately uses minimal energy in october and then once you've agreed the new amount puts the heating on constantly, has 30 minute showers etc for the rest of the winter?

I think it's fine to put it up if you need to, but you need to pick an amount now and tell her how much it will be, and promise that that will be it, no more changes until March, or whenever.

Lilithslove · 12/08/2022 00:03

If I was about to sign a rental contract and my potential landlord wanted to put an unspecified hike in 2 months after I moved in I think I would pull out. It makes you seem amaturish and I would wonder what other surprises and demands you had up your sleeve. Surely its better to just rent the room for a price that works for you from the start.

Lilithslove · 12/08/2022 00:06

Think of it this way. What if the lodger had lost their job and taken a lower paid one since agreeing to rent the room and then thought this meant they were entitled to a rent reduction.

Kup · 12/08/2022 00:19

I think I'd suggest the increase in November so she has two months before the increase. I don't think you are unreasonable to increase the rent.

Original poster
yellowcourgette · 12/08/2022 00:41

I appreciate the replies and I think it shows that it's a very difficult topic. Things like her taking a lower paying job to rent this room, or me being untrustworthy and hiking it again later, or her deliberately putting the heating on later, or putting an increase 1 month in so she feels resentful and trapped, or it being a unspecified hike.... these are all theorerical things and aren't really considerations. We're both reasonable, kind and professional people and this is about it being a fair discussion. I want to know how to go about this and what might be the best approach.

It's clear that some people think I'm being unreasonable, and I think if some of the above scenarios were true then maybe, but what I'm trying to do is introduce the topic and have a gentle discussion NOW, before she signs a contract, to avoid anything like me springing something on her when she's moved in, or charging her an unspecified amount. That's not my intention at all.

I've broached the subject and if she is dead set against it, then I think I will offer her 3 months at the specified price to give her plenty of warning, or I'll have to readvertise. I simply can't afford to cover the increase for two people over winter, and my rent is already lower than most, and all of the same standard.

Thanks for everyone's help and I appreciate that not everyone sees things the same way, and it's helped me understand that I need to be really clear and sensitive to her and make sure that she doesn't get the wrong idea or feels pressured or trapped.

OP posts:
Original poster
yellowcourgette · 12/08/2022 00:42

Kup · 12/08/2022 00:19

I think I'd suggest the increase in November so she has two months before the increase. I don't think you are unreasonable to increase the rent.

Yes that's what I'm thinking. She's not even sure if she'll have to move out after 3 months if her job requires her to be at a different university. I'm trying to be as flexible as possible for her, as changing lodgers is a pain, so hopefully she will also be understanding of my circumstances and we can work something out that's OK for both of us.

OP posts:
marblemad · 12/08/2022 01:07

Totally unreasonable and greedy, 30 percent is excessive and clearly to cover your difference. Letting them know before signing is vital, it's misleading to let them sign and then suddenly increase and they could definitely take you to small claims court over that.