Upwards only rent review after one year

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    Upwards only rent review after one year

    I wonder if anyone could help me please. I let out a house that I could not sell and have had tenants in for six years. I have never put the rent up and we have a good relationship. I also have to rent a house to live in , in another part of the country and am having a really difficult time with a well known franchise.I am about to move again and have just checked the contract. It is for two years and has a clause stating that a rent review will be conducted after a year, minimum 3% above RPI and thereafter every anniversary.
    We have had no end of trouble with these agents, lots of lies etc and this I'd the final straw. We are meant to move next week but I am thinking of pulling out. The rent is £1750, so will be quite a lot if we stay a few years.
    I thought that these clauses were for commercial or very long term contracts? Thanks if you read this far.

    #2
    Originally posted by Deepinlaundry View Post
    I also have to rent a house to live in , in another part of the country and am having a really difficult time with a well known franchise.I am about to move again and have just checked the contract. It is for two years and has a clause stating that a rent review will be conducted after a year, minimum 3% above RPI and thereafter every anniversary.
    Always best to check contracts before you sign them. I think such clauses, which state there will be a fixed rise after however long, are usually pretty unreasonable - market rents are frequently out of kilter with inflation, and there's no reason to suppose that rents couldn't actually fall against a background of a rising RPI.

    But you signed the contract, so....

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      #3
      Hi, thanks for your reply. I haven't signed the contract yet. I am considering whether to pull out now ( and lose £680 admin fees), ask for clause to be deleted ( but things are already very strained) or cross out clause and ask if landlord wants to pull out.
      I am already up against it as have objected to the usual compulsory insurance clause for landlord fixtures and fittings.
      I am just so tired of the letting agents underhand ways.
      I would try and get the admin fees back if they pull out as this has never been mentioned before.

      Comment


        #4
        A tenant who checks an agreement before signing it? well done you, thats got to be a first on here.

        If the agreement is unreasonable then there should be no problem getting your fees back but if you like the house I would try getting the clause removed first.

        Tell them you want to take the property, and you are really keen to sign the agreement but not with that clause in it.

        I hate mandatory clause for insurance, so do ARLA, RICS and the TSO so well done for kicking that out. If you already have your own insurance in place it should cover damage to goods you are responsible for even if not owned by you.
        My advice is not based on formal legal training but experience gained in 20+ years in the letting industry.

        Comment


          #5
          Thank you! I received a very angry phonecall last night from
          the agent after raising the insurance issue, so am slightly wary of him. However I would not sleep at night with the rent review clause in and it seems unreasonable to me ( particularly as I think we are paying quite a high rent in comparison to others in the area).

          I have sent an email to him and also asked for a response in writing to avoid another scary phonecall. I will need to cancel removals etc today if it is all off, so I need to get it sorted. He says that he never normally has trouble like this and that I am very difficult.

          Comment


            #6
            If you do decide to withdraw, send a letter, explaining your reasons,to LL.
            Rent review clause is unnec as LL can increase rent after 12 months using s13.

            Comment


              #7
              I have said that I would still like the house but would not agree to a rent review clause. Agent said it is standard clause but I don't agree nor do I think it is necessary. I might be wrong ( probably am) but thought the rent couldn't be raised during a fixed term ( mine is 2 years) without a rent review clause.
              I can find hardly anything on it apart from commercial leases or very long contracts ( 10 years plus).
              This is a standard franchise contract though from their head office, so would have thought more people had come up against it. I am so wary of letting agents, his predecessor embezzled client funds for a couple of years. Not looking good is it?!

              Comment


                #8
                I believe OP is correct about no rent increase during initial fixed term of AST unless mentioned in Contract. Hence the clause.

                Typical Corporate intransigence with UK wide Contracts.

                Comment


                  #9
                  Originally posted by Deepinlaundry View Post
                  I have said that I would still like the house but would not agree to a rent review clause. Agent said it is standard clause but I don't agree nor do I think it is necessary.
                  It's his standard clause, not a standard clause...

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