Negotiating renewal (as tenant)

[SwS]

Hi,

My wife and I are approaching the end of our two year fixed term tenancy. We have an excellent relationship with the landlord and wish for this to continue.

Both sides are looking to renew with reasonable security of tenure, which is likely to be a 1 year fixed term. Ideally we wish to renew but we have been looking at alternative premises as contingency.

We consider ourselves ideal tenants (Landlord has complimented us as such). I am to request that the Landlord offers 50% rent at renewal month alongside upgrades to the house, or one month free rent with no upgrades.

The obvious alternative is for the Landlord to refuse, but he'd be looking at least a month vacant possession (given the limited time) with an agent's finders fee on top. Then of course new tenants may not be of the same standard as us.

We see this as a reasonable request, what do you think? Has anyone seen/been in simlar negotiations?

Thanks in advance.

[westminster]

Hello again, SwS!

Can you clarify what these upgrades are? Improvements, I presume. Either way, you are basically asking for a rent reduction. Are rents decreasing in your area? If not, it won't be a very attractive offer for the LL.

[mariner]

"We consider ourselves ideal tenants (Landlord has complimented us as such). I am to request that the Landlord offers 50% rent at renewal month alongside upgrades to the house, or one month free rent with no upgrades."

Negotiation or blackmail? Either way your status as 'ideal' Ts is at risk.
LL is under no obligation to provide upgrades during T, only honour his repair resp. He could serve s13 to increase rent or if new AST is offered, require a new higher rent for existing property.
In either case, if rejected, you will have to pay fees for new T, and risk paying more than current LL for his void.
The only day you can vacate without notice/penalty is last day of fixed term, putting LL good ref at risk. If you vacate earlier, you will remain liable for rent & property until end of fixed term, if you vacate during SPT you remain liable until your notice legally expires, or if no notice giveb, until T is legally terminated by Court Order. You will be liable for Court & any Bailiff costs incured.
By all means attempt negotiation, but be aware a good LL will have factored in void costs.

Your next rental/LL at short notice ????
Your decision.

[jjlandlord]

Negotiation or blackmail?

Er, what blackmail? Negotiation is playing your hand, the hard way if necessary.

What SwS should tell us is why he thinks his (heavy-handed) proposal is reasonable.
His post suggests that there might be problems with the property, but it's not explicit.

[Ericthelobster]

We consider ourselves ideal tenants (Landlord has complimented us as such). I am to request that the Landlord offers 50% rent at renewal month alongside upgrades to the house, or one month free rent with no upgrades.

I agree with Westminster on this. My guess is that after two years, your LL will probably be seeking an increased rent at renewal - in most areas the rents have gone up considerably during that time. At any rate, that's likely to be his opening position during negotiations, so you might end up agreeing to no change to the current rent as a compromise?

[SwS]

Quick update - after a fair and open discussion, Landlord has agreed to one month's free rent at renewal. In return, we have signed an 18 month fixed term AST.

Both parties are very happy. Landlord continues with good reliable tenants and we receive security of tenure.

Interesting to see some of the comments here. Why shouldn't a good tenant sell themselves? A tenancy is two sided, I've learnt the hard way from experience from (heavy handed) Landlords who like to dictate terms.

[johnjw]

Of course you are right in saying that a tenancy is two-sided. Good to hear that things have worked out well for you.
I am curious about the upgrading work in respect of which you seem to have gained one month rent free. Is this work something which will bring you a benefit eg new carpets or a new kitchen? or is it all or mainly essential repair work which will have no effect on your living conditions except by being a nuisance while the work is being carried out?
If it is the former ie. work which will improve your standard of living, then I can't understand why the LL would agree to a rent reduction. Surely he would want to negotiate an increase in rent or alternatively, not do the improvement work at all.
Yours is a very interesting negotiation with what appears to be a favourable outcome for yourself. I hope you can give us more information about the deal.

[Ericthelobster]

Quick update - after a fair and open discussion, Landlord has agreed to one month's free rent at renewal. In return, we have signed an 18 month fixed term AST.

At the same rent as before (ie equivalent to a 6% discount for the full term)?

Sounds like you've got a very good deal. (The LL should at least have given you the free month at month 18, rather than month 1!!)

[bhaal]

"We consider ourselves ideal tenants (Landlord has complimented us as such). I am to request that the Landlord offers 50% rent at renewal month alongside upgrades to the house, or one month free rent with no upgrades."

Negotiation or blackmail? Either way your status as 'ideal' Ts is at risk.
LL is under no obligation to provide upgrades during T, only honour his repair resp. He could serve s13 to increase rent or if new AST is offered, require a new higher rent for existing property.
In either case, if rejected, you will have to pay fees for new T, and risk paying more than current LL for his void.
The only day you can vacate without notice/penalty is last day of fixed term, putting LL good ref at risk. If you vacate earlier, you will remain liable for rent & property until end of fixed term, if you vacate during SPT you remain liable until your notice legally expires, or if no notice giveb, until T is legally terminated by Court Order. You will be liable for Court & any Bailiff costs incured.
By all means attempt negotiation, but be aware a good LL will have factored in void costs.

Your next rental/LL at short notice ????
Your decision.

I totally disagree with mariner. Not negotiating is just stupid. If the landlord doesn't like it he can walk away, to suggest that a perfect tenant should jump when the landlord says so and accept any terms sent their way is naive and somewhat patronising.

The liability for court and bailiff costs incurred when seeking eviction is not necessarily that of the tenant - it depends on the wording of the AST and the conduct of the parties in any court proceedings.