Tenants refusing to accept rent increase!

Tenants refusing to accept rent increase!

0:02 AM, 9th August 2023, About 11 months ago 49

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Hi, I am facing issues with implementing rent increases. The tenancies are AST that have rolled on to periodic tenancies on the expiry of the initial fixed term. The rents have to go up as costs have gone up and rents have not been revised for over a year.

In one of the properties, the tenant simply refuses to accept the increase stating it is unaffordable for them and they will continue to stay in the property at the old rent until they find another suitable place to rent. They have stayed in the property for over a year without any increase. I increased the rent on other flats in the same block but did not increase their rent as there were some outstanding repair issues that were being dealt with. Soon after the repair works were completed, I have given the tenant a month’s notice of the increase.

The increased rent is in line with what can be achieved on similar properties in the area. However, the tenants are adamant and refuse to accept any increase in rent. It is highly unlikely that the tenants will be able to find another property at the same or lower rent. I have tried negotiating with them but they won’t budge. What are my options?

There is another tenant who brings up maintenance issues, every time a rent increase is proposed and refuses to pay the increased rent unless all the repairs are completed to their satisfaction. These repair issues are never flagged up during the year! Are tenants legally permitted to refuse to pay the higher rent on these grounds?

Thanks,

Sam


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Russell Cartner

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15:44 PM, 9th August 2023, About 11 months ago

Reply to the comment left by Kate Mellor at 09/08/2023 - 15:29
And there endeth

Trevor Coursol

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16:02 PM, 9th August 2023, About 11 months ago

It sounds like you want to raise the rent and they don't want to. So you asking how to evict. Or you asking should you fallow through.
If your asking if you should follow through the answer is only you can decide.
I have had a tenant for 15 years. Always pays his rent only time I hear anything from him is when inspect his place every 6 months. He has cost me $2000 because I wanted him to have new fridge and stove because the others where to old and costing me more in hydro. Last year he moved away to be closer to his kids and grand kids. Place was left in immaculate condition. I then proceeded to rent it out 3 months into renting they stop paying. Took me 6 months to evict them and destroyed the place cost me almost $8000 to fix.
So truly you need to gauge what your needs are.

Seething Landlord

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16:03 PM, 9th August 2023, About 11 months ago

Reply to the comment left by Kate Mellor at 09/08/2023 - 15:29
If this is normal practice, all I can say is no wonder S21 is on the way out. You are reinforcing the claim, denied by most landlords, that S21 is used to enforce rent increases and to circumvent other provisions built in to S8 of the Housing Act that are designed to protect tenants from unfair treatment.

How will you deal with these situations when S21 is no longer available?

Russell Cartner

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17:05 PM, 9th August 2023, About 11 months ago

Reply to the comment left by Trevor Coursol at 09/08/2023 - 16:02
Obviously you did not have Direct Line Landlord insurance with DAS Law

Kate Mellor

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17:08 PM, 9th August 2023, About 11 months ago

Reply to the comment left by Seething Landlord at 09/08/2023 - 16:03
I’m not in any way misusing s21. I’m suggesting using it to enforce a rent increase that a group of tenants have decided to ignore. They have the option to get an independent review of the increase, but instead they’ve all decided get into rent arrears.
What option does the landlord have to enforce their valid right to increase rent other than to evict. These people have decided that they’ve got the landlord over a barrel, but they haven’t.
When s21 goes this landlord will still have a valid claim under s8 to serve these underpaying tenants notice BECAUSE THEY ARE IN RENT ARREARS!
Personally I would give the notice and only carry out an eviction if they continued to underpay, but some people are suggesting that my suggestion to only evict if under-payment continues is not a good idea, and they should go whatever happens. I suggest you take your criticism to those individuals.

Russell Cartner

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17:38 PM, 9th August 2023, About 11 months ago

Reply to the comment left by Kate Mellor at 09/08/2023 - 17:08
Give them all sec 21's the ones that pay the new rent you leave til another day
The other ones get them out one by one
As soon as you evict they all fall inline

Seething Landlord

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19:04 PM, 9th August 2023, About 11 months ago

Reply to the comment left by Kate Mellor at 09/08/2023 - 17:08
A rent increase is only valid if in accordance with a term of the tenancy agreement, agreed between the parties, effected by an unchallenged S13 notice or assessed by the FTT.

If you are saying that it is reasonable to use S21 if a valid increase is ignored, I agree. Arrears will start to accumulate but it will take a long while to reach the 2 months threshold, which will be the problem once S21 has gone. Relying on the discretionary grounds will probably be a waste of time and money.

Paul Power

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19:18 PM, 9th August 2023, About 11 months ago

Reply to the comment left by Seething Landlord at 09/08/2023 - 19:04
Isn't the first sentence of your post a salient point? If the tenancy agreement has provision for an increase and they have declined to pay for x time before (as the OP seems to infer) then is there potential for s8 straight off the bat? I can see a potential that LL accepted the declination by not attempting enforcement though.

Seething Landlord

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19:37 PM, 9th August 2023, About 11 months ago

Reply to the comment left by Paul Power at 09/08/2023 - 19:18
I can't see anything in the original post to suggest that the tenancy agreement had a provision for specified rent increases, but under S8 the only mandatory ground based on rent arrears is ground 8 so no action would be possible until the arrears equated to two months rent.

John Porcella

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20:43 PM, 9th August 2023, About 11 months ago

Reply to the comment left by Gary Nock at 09/08/2023 - 10:07
Why would it need to go to a Rent Tribunal? The landlord can set what rents they like, currently, so long as sufficient notice has been given. No requirement to be affordable or a market rent.

Eviction through S21 seems to be the way to go.

Perhaps the tenant is looking to be made homeless on purpose?

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