Tenant refusing a rent increase

[Mr $quanda£ot]

A fellow Nordic soul got in touch all of a sudden.

His landlord had proposed a 20% rent increase from next month.

He told me that he's currently on an AST until next week. Then it would be a periodic tenancy.

He's a long-term tenant with a spotless payment record. However, when he told me what he was paying I could fully understand why some letting agents had told the landlord that the property was worth much more. His current rent is just below £1,000 pcm for a one bed in a decent area in outer London.

Basically, he has rejected the rent increase and invited his landlord to serve him a section 21 notice.

The landlord has now tried to negotiate but my friend isn't budging. He told his landlord that he'd be happy to receive the notice and move out in two months. However, he has given the landlord an option to review the situation in six months time with a possible rent increase but with no firm promises. The landlord seems a bit confused all of a sudden with "sorry to lose you, I'd prefer you to stay etc." but is saying that he'll have to think about what to do.

My friend is in a good position in a sense that he's not tight up to stay in London but could move and stay in his parent's second home abroad to start with.

Should I advise him to pull the plug and move now?

[Berniethebolt]

Re: Tenant refusing a rent increase

Hi
Does your friend pay the rent or does he qualify for housing benefit?
If he qualifies for HB how does this new rent relate to the Local housing allowance.

I have been told that you can apply for a fair rent assessment even as a private landlord . Rents in London have been increasing so I can understand why the LL would want to increase the rent.

Ultimately the options are
1) Move
2) pay the rent
3) get the flat assessed for fair rent -but he might not like what he is told
4) negotiate with the LL

If the LL is set on increasing the rent there is little you can do about it, why not go and live in his parents 2nd home. Having that option makes him a very lucky man

[Mr $quanda£ot]

Re: Tenant refusing a rent increase

My understanding is that he has decided to move, hence invited the landlord to serve a section 21 notice.

I wish more tenants would do that as it's the only way to stop the housing market getting out of control.

Moving is a hassle. I hate it myself too. However, now his landlord is about to lose a tenant who has been living in his propert for years. The LL hasn't had any void periods but now he will.

Even in London properties don't always get let overnight and surely some redecoration will be required. My understanding is that his landlord has a mortgage on the property and had told him that he'd been asking some agents the sales values too.

Funny enough, another friend has three properties. All have mortgages. He hates nothing more than void periods!

[FlamingParrot]

Re: Tenant refusing a rent increase

Does your friend pay the rent or does he qualify for housing benefit?
If he qualifies for HB how does this new rent relate to the Local housing allowance.

That's a very important point. Because LHAs are calculated for broad areas, there are places where the LHA would cover more of the average rent than others.

If the LL is set on increasing the rent there is little you can do about it, why not go and live in his parents 2nd home. Having that option makes him a very lucky man

That would depend on where his parents' 2nd home is located. If it was in the Spanish Costas or the Greek Islands, he would be very lucky indeed!

However, some people have strange ideas about where to have second homes.

[Mr $quanda£ot]

Re: Tenant refusing a rent increase

Just spoke to my Nordic friend.

He said that if his landlords serves the section 21 notice, he has decided to move back to his native Norway. He has asked his uncle to view a flat in Oslo, just a minute away from where the uncle lives himself.

He told me that his parents' second home is in Narvik, right on the Artic Circle!

[Berniethebolt]

Re: Tenant refusing a rent increase

That's a very important point. Because LHAs are calculated for broad areas, there are places where the LHA would cover more of the average rent than others.

That would depend on where his parents' 2nd home is located. If it was in the Spanish Costas or the Greek Islands, he would be very lucky indeed!

However, some people have strange ideas about where to have second homes.

I was just suggesting that anyone lucky enough to have parents with a 2nd home is privileged . I admit if I had a 2nd home it would be on the Med or Adriatic area . I would love a home in the Peloponnese or the Croatian coast , maybe one of the islands

- - - Updated - - -

Just spoke to my Nordic friend.

He said that if his landlords serves the section 21 notice, he has decided to move back to his native Norway. He has asked his uncle to view a flat in Oslo, just a minute away from where the uncle lives himself.

He told me that his parents' second home is in Narvik, right on the Artic Circle!

You don't need to have a S21 to leave of course , you can leave at any time by serving notice. Even if a S21 is issued it can take several months before the LL can gain possession if your friend decided to stay put .

[Mr $quanda£ot]

Re: Tenant refusing a rent increase

I was just suggesting that anyone lucky enough to have parents with a 2nd home is privileged . I admit if I had a 2nd home it would be on the Med or Adriatic area . I would love a home in the Peloponnese or the Croatian coast , maybe one of the islands

- - - Updated - - -



You don't need to have a S21 to leave of course , you can leave at any time by serving notice. Even if a S21 is issued it can take several months before the LL can gain possession if your friend decided to stay put .

My friend said he wants to leave in good terms. He said he'd never had a problem with his landlord and is keen to get a good reference. He is looking to rent in Oslo but if that fails for whatever reason he's off to Narvik. He works from home as a technical translator/copywriter so he's hoping to keep most of his clients.

If you are lucky enough to be able to work remotely it doesn't matter where you are living!

[FlamingParrot]

Re: Tenant refusing a rent increase

Just spoke to my Nordic friend.

He said that if his landlords serves the section 21 notice, he has decided to move back to his native Norway. He has asked his uncle to view a flat in Oslo, just a minute away from where the uncle lives himself.

He told me that his parents' second home is in Narvik, right on the Artic Circle!

I went to Narvik once, in the summer, there was 24 hours daylight and I took the cable car to go up the mountain and enjoy the gorgeous views. I think they have floodlit sky runs in the winter. Its location is stunning but gives a new meaning to the expression "middle of nowhere". I don't think the winters are that cold despite the polar latitude due to the Gulf Stream reaching all the way up here, however, if you went a little further inland it would be freeeezzzzing, not to mention 24 hours of darkness in the winter.

I don't know any Norwegians, I don't think they come here much, however, I do know a mad Finn or two. :grin:

No-one wants to pay more rent but IMHO is utter madness to move all the way up there just over a rent increase! :eek2:

- - - Updated - - -

My friend said he wants to leave in good terms. He said he'd never had a problem with his landlord and is keen to get a good reference. He is looking to rent in Oslo but if that fails for whatever reason he's off to Narvik. He works from home as a technical translator/copywriter so he's hoping to keep most of his clients.

If you are lucky enough to be able to work remotely it doesn't matter where you are living!

In that case I'd live much further south, probably much further east as well! :grin: :grin: :grin:

[Mr $quanda£ot]

Re: Tenant refusing a rent increase

Just like me, I think my Norwegian friend has been thinking about leaving the country for some time.

I did ask him whether there was somewhere in the UK he could consider moving but his response was that he's just had enough of this nonsense!

I've asked him before why he moved to the UK in the first place. His reply was that he found Norway dull when he was younger and once Norway was part of the EEA he thought why not just move somewhere more cosmopolitan. Strange how people change when they get older!

I'm tired of London too but could well consider living in Harrogate. Perhaps I will one day

[FlamingParrot]

Re: Tenant refusing a rent increase

Just like me, I think my Norwegian friend has been thinking about leaving the country for some time.

Haven't we all? Only I'd be moving somewhere hot'n'sunny.

I did ask him whether there was somewhere in the UK he could consider moving but his response was that he's just had enough of this nonsense!

I've asked him before why he moved to the UK in the first place. His reply was that he found Norway dull when he was younger and once Norway was part of the EEA he thought why not just move somewhere more cosmopolitan. Strange how people change when they get older!

Indeed we do, once upon a time I used to love snow! Snow and cold climates are for the young though, as you get older you want somewhere nice and toasty.

I'm tired of London too but could well consider living in Harrogate. Perhaps I will one day

"When a man is tired of London he is tired of life"; http://www.samueljohnson.com/tiredlon.html

That's exactly what Samuel Johnson said, although I assume you are also a man because you call yourself "Mr $quanda£ot".

[Berniethebolt]

Re: Tenant refusing a rent increase

I'm not sure you would find Harrogate what you are used to. You do know it's in deepest darkest Yorkshire don't you. It is also rather pretensious

[Kati]

Re: Tenant refusing a rent increase

I lived in Harrogate for a while when my lads were younger ... very expensive :sad:

The RHS gardens are beautiful and the people can be friendly (most Yorkshire people are :lol

[Mr $quanda£ot]

Re: Tenant refusing a rent increase

I lived in Harrogate for a while when my lads were younger ... very expensive :sad:

The RHS gardens are beautiful and the people can be friendly (most Yorkshire people are :lol

Harrogate is expensive by northern standards. However, I'm sure average rent isn't £1.5k like in London!

Per's (Norwegian friend) landlord wanted £1,200 instead of £1,000 he's currently paying.

The latest is that the landlord doesn't know what to do.

Even in London many people don't earn much more than £2k after taxes. Of course, some earn much more but far more many even less.

If you earn £2k per month net and pay £1,200 rent. You got £800 left. You then pay council tax about £100. Your travel card is likely to cost c.£150 (that's what mine is). Then your mobile phone, broadband, TV and other utilities, insurance policies add another £200. If you have a car you can no longer afford it as you suddenly got just £350 left. It may sound plenty but many people have credit cards to pay. We all have to eat though some people reckon £4 per day is enough. Ok, if you are able to do all your work from home you'll save £150 and have £500 in this scenario which is better.

With a rent like that for one person you might just forget socialising and going out. You wouldn't get any housing benefit because your earnings are too high...

...£350 left after your expenses is it really worth it? You can forget holidays too!

[Crazy council]

Re: Tenant refusing a rent increase

hi

Usualy terms for increasing rents are included in the TA, 20% increase seems high, but, it depends on how long the rent has been.

And, being devils advocate,, say if i was YOUR property agent, and i said to you ( being honest ) that the property was undervalued in rent by about £ 200 pcm, do you.

1. Say its ok, i dont need the extra 200 per month, let the tenant keep paying the same
2. thats 2,400 per year, tell the tenant to pay or leave. Find me another sucker thats not thinking of getting on the government first time buyers ISA...... muhahahahaha

[Mr $quanda£ot]

Re: Tenant refusing a rent increase

hi

Usualy terms for increasing rents are included in the TA, 20% increase seems high, but, it depends on how long the rent has been.

And, being devils advocate,, say if i was YOUR property agent, and i said to you ( being honest ) that the property was undervalued in rent by about £ 200 pcm, do you.

1. Say its ok, i dont need the extra 200 per month, let the tenant keep paying the same
2. thats 2,400 per year, tell the tenant to pay or leave. Find me another sucker thats not thinking of getting on the government first time buyers ISA...... muhahahahaha

If I was a a cheeky letting agent I'd say the property was worth up to £1.5k, quoting newspapers etc.

If I was the landlord in question, I would talk to other landlords if I was lucky to know some.

Talking to letting agents is often waste of time. They want your business and are likely to inflate figures.

I would also look at my relationship with the tenant. If they have been no trouble at all, paying rent on time etc. I might just let them stay - for now.

Per said he's renting directly. If his landlord found a new tenant willing to pay £1,200 through letting agents, a typical fee would be 10%. Not to mention redecoration, vetting tenants etc. There would be a void period in any case.

Is it really worth it?