Industrial Unit on a Periodic Tenancy

[tiswas01]

I am looking for some sound advice re my problem. I currently rent an industrial unit for which I pay £525 per month. This payment includes rates and electricity. I have retained this rental for the last 7 years on a Periodic Tenancy. I have never signed a Lease or Agreement of any description. I pay my rent promptly at the end of each month.

I started negotiating about 2 months ago to purchase an industrial unit very close to my current rental. As usual it is taking some time to clear all the legal aspects of purchasing through the bank and solicitor etc.

My current landlord also runs his own business quite closely and has now become aware that I may be terminating my tenancy within a couple of months. He has today 11th given me a letter informing me that my rent is being increased by £275 per month. This he says is due to increases in rates and electricity. I was very surprised at the amount of the increase. I believe he is deliberately being difficult. I have 2 questions that I am seeking advice on these are:

1. Is such a large increase legal on a Periodic Tenancy of a month and could I go to County Court to question it?

2. As I pay my rent at the end of each month should his letter confirm that it would increase from the start of the next month.

Any guidance/help will be greatly appreciated.

tiswas01

[SweetandSour]

Re: Industrial Unit on a Periodic Tenancy

Hi
You need to be served with notice of a rent increase and I believe it has to be at least one months notice served before rent due date. I am new to this forum so I am not familiar with regular poster's knowledge, but if you don't get a definite answer here, another website where you will get sound advice on this particular subject is Landlordzone.co.uk

[Kati]

Re: Industrial Unit on a Periodic Tenancy

I am looking for some sound advice re my problem. I currently rent an industrial unit for which I pay £525 per month. This payment includes rates and electricity. I have retained this rental for the last 7 years on a Periodic Tenancy. I have never signed a Lease or Agreement of any description. I pay my rent promptly at the end of each month.

I started negotiating about 2 months ago to purchase an industrial unit very close to my current rental. As usual it is taking some time to clear all the legal aspects of purchasing through the bank and solicitor etc.

My current landlord also runs his own business quite closely and has now become aware that I may be terminating my tenancy within a couple of months. He has today 11th given me a letter informing me that my rent is being increased by £275 per month. This he says is due to increases in rates and electricity. I was very surprised at the amount of the increase. I believe he is deliberately being difficult. I have 2 questions that I am seeking advice on these are:

1. Is such a large increase legal on a Periodic Tenancy of a month and could I go to County Court to question it?

2. As I pay my rent at the end of each month should his letter confirm that it would increase from the start of the next month.

Any guidance/help will be greatly appreciated.

tiswas01

Hi Tiswas
Please see this LINK from Gov.uk ...

General rules around rent increases

For any tenancy:

• your landlord must get your permission if they want to increase the rent by more than previously agreed
• the rent increase must be fair and realistic (ie in line with average local rents)

How your landlord must propose a rent increase

If the tenancy agreement lays down a procedure for increasing rent, your landlord must stick to this. Otherwise, your landlord can:

• renew your tenancy agreement at the end of the fixed term, but with an increased rent
• agree a rent increase with you and produce a written record of the agreement that you both sign
• use a ‘Landlord’s notice proposing a new rent’ form, which increases the rent after the fixed term has ended

Your landlord must give you a minimum of one month’s notice (if you pay rent weekly or monthly). If you have a yearly tenancy, they must give you 6 months’ notice.

K x

[tiswas01]

Re: Industrial Unit on a Periodic Tenancy

H Kati
Thank you for responding so quickly. I just wanted to re cap on a couple of points so I have it very clear in my mind. As mentioned in my original post I have never had or signed a formal written Tenancy Agreement/License. I know this was stupid however my current landlord and I were good friends at the start of our arrangement. This went on well for the best part of 7 years up till very recently, when I indicated that I was proposing purchasing my own unit very close to both our respective businesses. As we are in the same line of business I feel that this does not sit well with him. I am anxious not to rock the boat as I hope to be in my new premises within the next 2 months.
As I understand it within the Landlords and Tenants Act 1954 my rental situation is regarded as a Periodic Tenancy on a monthly basis. My obligation when I wish to terminate is to give him 1 clear months notice ie before the end of the current month and make my final payment for that month.

I have just been handed the letter from him dated 11th November 2014 saying that due to cost increases to electricity,water and rates my rent is to increase by £150 from the 1st December 2014.
I thought that any notice of an increase should be given with a full 1 months notice. eg at the end of this month and to take effect 1st January 2015.

I last had an increase of my rent on the 1st November 2013 to £800 and feel that a further increase of £150 per month is not being reasonable.

Can you please advise me if my assumption regarding the period of notice is correct and do I have any re address regarding the increase of the rent yet again.

I do appreciate the time and trouble you have taken to respond.

Regards

tiswas01

[SweetandSour]

Re: Industrial Unit on a Periodic Tenancy

You haven't been served enough notice and you don't have to agree to the rent increase. How does the rent compare with other similar units near you?

[tiswas01]

Re: Industrial Unit on a Periodic Tenancy

You haven't been served enough notice and you don't have to agree to the rent increase. How does the rent compare with other similar units near you?

Hi Sweetandsour.
Thank you for responding so very quickly to my post. Up till last years increase (1/11/2013) my rent was very much in keeping with other rents locally. However, with the proposed increase it is well out of kilter. I am desperate to obtain my new unit as soon as possible. I really can do without all this "stress". I just want to ran my business and provide a good service to my customers. When you say I have not been served enough notice etc is my assumption correct that it must be served at the end of the month and then to take effect 1 month after. I am very grateful for the time and trouble you have taken to respond. Regards. tiswas01

[Kati]

Re: Industrial Unit on a Periodic Tenancy

Hi Tiswas,
Have you looked through the pages on the link I posted up on post #2? The two main points (I believe) are:

1. Any rent increase must be in line with the rents on similar properties.
   
2. Your landlord must give you at least one full month of notice before a rent increase can be put in place.

If this has not happened, then your current landlord is being unfair!

Kati x

[tiswas01]

Re: Industrial Unit on a Periodic Tenancy

Hi Kati
Thanks for responding again so quickly.
Yes I did look at the Gov.uk link but took it that it related solely to Private Residential renting.
Thanks again for your help.

tiswas01