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MrB

Rent Increase Built Into Tenancy Agreement

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Looking to move, seen a place, tenancy agreement has what I thought was an outrageous clause saying

"on the anniversary of the tenancy agreement, the rent will increase by RPIX times by a multple of 1.5"

So with RPIX now aorund 5%, next year likely to be higher due to the VAT increase, we could be looking a a rent increase of 8-10% year after year built into the agreement!

Is this normal? It's not in my current agreement. I'll ask for it to be removed since I think its a fking cheek.

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The type who tries it on with a clause like this will likely be determined to shaft you one way or another. If you get it changed they will pull the 'thieved your deposit scam' or something.

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We objected to this kind of term in a contract a couple of years ago. Bit of an argument with the letting agent. We said we would only agree to: "The rent may be renegotiated after 12 months" but weren't going to sign up to an unpredictable rent increase.

The letting (estate) agent seemed to think that the offical inflation rate (RPI or CPI) was a kind of government instruction of how much businesses should put up prices.

His main motivation was, though, that to renegotiate would be extra work for his staff. He actually said that.

The way we dealt with it was to edit the contract - crossing out the offending sentence and adding our own, signing each page, and keeping a photocopy of what we'd signed - being pretty sure that no-one in the agent's office would be bothered to read it, think about it or delay getting their commission from the landlord by objecting.

Or, you could agree to the rent moving in line with annual house price inflation over the next 12 months.

Y

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"on the anniversary of the tenancy agreement, the rent will increase by RPIX times by a multple of 1.5"

The clause is meaningless and another classic example of woeful drafting.

First it refers to the anniversary of the tenancy agreement - tenancy agreements do not have anniversaries; what they mean is the anniversary of the start date of the tenancy. In fact what they really mean is each anniversary of the start date as if it is to increase on the anniversary it will only increase once.

Secondly, it says the rent is to "increase by RPIX times by a multiple of 1.5." The RPIX is an economic index and is just a number and it keeps changing, so if you mean literally that the rent is to rise by a figure of the RPIX you have to specify the figure on a particular day. But of course they do not mean that the rent is to rise by the figure of the RPIX on a specific date, but that the rent is to rise in the same proportion as RPIX rose over the previous year. They have not said that at all. "Times by a multiple of 1.5" presumably means "multiplied by 1.5"; otherwise we have to ask what multiple of 1.5 is to be used.

Even if the clause were properly drafted, there has to be some doubt as to whether in an agreement for a fixed term you can set the rent for any period after the term has expired.

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Just rent something else, there's plenty about. These kinds of idiots are just waving a big flag with 'we are incompetent c0cks who will be a nightmare to deal with for the lifetime of the tenancy' written on it before you've even started.

Thank them for the warning as to how idiotic they are and tell them to go fk themselves.

Edited by cybernoid

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The clause is meaningless and another classic example of woeful drafting.

First it refers to the anniversary of the tenancy agreement - tenancy agreements do not have anniversaries; what they mean is the anniversary of the start date of the tenancy. In fact what they really mean is each anniversary of the start date as if it is to increase on the anniversary it will only increase once.

Secondly, it says the rent is to "increase by RPIX times by a multiple of 1.5." The RPIX is an economic index and is just a number and it keeps changing, so if you mean literally that the rent is to rise by a figure of the RPIX you have to specify the figure on a particular day. But of course they do not mean that the rent is to rise by the figure of the RPIX on a specific date, but that the rent is to rise in the same proportion as RPIX rose over the previous year. They have not said that at all. "Times by a multiple of 1.5" presumably means "multiplied by 1.5"; otherwise we have to ask what multiple of 1.5 is to be used.

Even if the clause were properly drafted, there has to be some doubt as to whether in an agreement for a fixed term you can set the rent for any period after the term has expired.

good points here.

this agent also thinks you are going to resign every year...in that case, a new AST is formed, regardless of what is in this, the original. the rent will be negotiated between you.

course, if you just roll over to a Statutory, then you are going to get all the above arguments every year.

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Just rent something else, there's plenty about. These kinds of idiots are just waving a big flag with 'we are incompetent c0cks who will be a nightmare to deal with for the lifetime of the tenancy' written on it before you've even started.

Thank them for the warning as to how idiotic they are and tell them to go fk themselves.

That's pretty much my take on it. I have learnt the hard way, not specifically related to the same thing, but as somebody said above the sort of person who does this in the first place is likely to be somebody who will play silly buggers some time else.

All you would be doing by getting it removed is just delaying the day when they try and do something else.

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course, if you just roll over to a Statutory, then you are going to get all the above arguments every year.

Been on a periodic for about 6 years... every year they write the same snotty letter demanding 100 quid re contract fee.

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Been on a periodic for about 6 years... every year they write the same snotty letter demanding 100 quid re contract fee.

£100 for what? the original AST is in force...hope you dont pay them.

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£100 for what? the original AST is in force...hope you dont pay them.

I am on a 1 year ast with a break clause at 6 months.

Telling the LA's to poke it would, apart from making things difficult with them and them stirring the LL, lose us the guaranteed 6 months. I may do it in another year or two when we are looking to buy so that we have the freedom of giving notice any time but at the moment their £90 fee doesn't seem a big deal. Am I missing something here?

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Am I missing something here?

Yes. This: tenants are rolling over and allowing agents to use them as milch cows. These days tenants are expected to pay reservation fees, administration fees, vetting fees, checking in fees, checking out fees, preparation of agreement fees, writing letters-to-tell-them-they-are-in-arrears fees and even your-tenancy-has-become-periodic fees. The time has come to put a stop to it all. The government is unlikely to help. Tenants need to start making a stand. If an agent threatens that he will serve a section 21 notice if you do not pay some fee write and tell your landlord and ask him if he approves the agent's actions.

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Yes. This: tenants are rolling over and allowing agents to use them as milch cows. These days tenants are expected to pay reservation fees, administration fees, vetting fees, checking in fees, checking out fees, preparation of agreement fees, writing letters-to-tell-them-they-are-in-arrears fees and even your-tenancy-has-become-periodic fees. The time has come to put a stop to it all. The government is unlikely to help. Tenants need to start making a stand. If an agent threatens that he will serve a section 21 notice if you do not pay some fee write and tell your landlord and ask him if he approves the agent's actions.

100% agree with this advice, people need to realise they are customers and its a business, landlords do NOT want a void just to an agent can get a £90 fee.

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100% agree with this advice, people need to realise they are customers and its a business, landlords do NOT want a void just to an agent can get a £90 fee.

Trouble is that in this area there is a lot of competition for very few rents. For me personally it would not be worth falling out with the village LA or risking them badmouth me to the LL. I have no doubt that a LA could turn a clueless LL against you quite quickly and especially if they can replace the tennant no problem.

I appreciate what you are saying though and was sorely tempted to refuse to resign the agreement this year. Will definately refuse when we are ready to start looking but am just gonna have to bend over for now.

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Yes. This: tenants are rolling over and allowing agents to use them as milch cows. These days tenants are expected to pay reservation fees, administration fees, vetting fees, checking in fees, checking out fees, preparation of agreement fees, writing letters-to-tell-them-they-are-in-arrears fees and even your-tenancy-has-become-periodic fees. The time has come to put a stop to it all. The government is unlikely to help. Tenants need to start making a stand. If an agent threatens that he will serve a section 21 notice if you do not pay some fee write and tell your landlord and ask him if he approves the agent's actions.

Thanks also

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Trouble is that in this area there is a lot of competition for very few rents. For me personally it would not be worth falling out with the village LA or risking them badmouth me to the LL. I have no doubt that a LA could turn a clueless LL against you quite quickly and especially if they can replace the tennant no problem.

I appreciate what you are saying though and was sorely tempted to refuse to resign the agreement this year. Will definately refuse when we are ready to start looking but am just gonna have to bend over for now.

Classic situation. You know you should make a stand, but personal circumstances tell you not to. It is not for me who is not faced with your situation to tell you what to do. I will however say this: Progress was never achieved through timidity.

Be bloody, bold, and resolute

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  • 152 Brexit, House prices and Summer 2020

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