What do you think of my rent challenge amendment to the Renters Rights Bill?

Reply to the comment left by PH at 28/09/2024 - 10:47Yes, because otherwise the rent increases will not be annual but pushed back by several months year on year. Also, every tenant will refer their rent increase to the tribunal because it costs them nothing and they have nothing to lose - they know it will at the very least put the increase back a further three months. Once every tenant catches on to this ruse the backlog at the Tribunal will be such that landlords will have zero chance of the touted annual rent increase and all rents will therefore be cumulatively suppressed as years go by until the landlord is bankrupted. This is just one of several insane measures in the RRB as drafted which, if unamended as the Bill passes through its stages to statute, will reduce the PRS to a skeleton sector and balloon homelessness.

My rents are not only below market rate, they’re also below Local Housing Allowance rates.

If I propose a rent increase, my tenants have two choices. They can either, accept the proposed rent or they can seriously p… me off. They’d be best advised to accept the proposed rent.

I plan to increase rents every year by the rate of inflation or 5% whichever is greater.

Reply to the comment left by Cider Drinker at 29/09/2024 - 18:37
I think an issue is that probably most landlords have a mortgage which will have a big influence of the market rate. I don't and hence my rents are well below market rate. The question I pose is - when you have paid off your mortgage do you reduce the rent ? -- I thought not

Reply to the comment left by GlanACC at 29/09/2024 - 19:05
Most will have interest only on their mortgages so paying them off is a hypothetical thing.
The pay off is the increase in equity over several decades so when you exit the business and sell the properties you, in theory, have a pension pot.
For me it was always as long as the house pays it's way I'll keep it until I retire. Now sadly a lot aren't paying their way and it looks like the prudent thing to do is cash my chips in now before it becomes very difficult to.
Unfortunately we will never see a blanket rent reduction as supply and demand will dictate the rents. You are half right though for the landlords that remain in a couple of years when interest rates have dropped they will be well off. That of course includes you with no mortgage.
Not me though, nearly 20 years, hundreds if not thousands of tenants and I've had enough.

Reply to the comment left by GlanACC at 29/09/2024 - 12:12
I appreciate the consideration for your tenants, but you may wish to be wary about offering this. It could be in breach of the Tenant Fees act.

By paying the rent on time, the defacto rent could be seen as, for example, £900 instead of £1,000. the £900 is the amount that the tenant is expected to pay if they are on time each month. If a week were to pass and they are now expected to pay £1,000, that could be seen as a breach of the act.

I am no lawyer so please do not take my word for it, but might be worth speaking to someone in the legal profession who can advise on this. I don't want you getting caught out.

Reply to the comment left by The Forever Tenant at 30/09/2024 - 12:45
Good point, hadn't really thought that through. Yes if the tenant doesn't pay on time you can charge interest after 14 days, do I suppose the discount I wanted to offer could be construed as that interest (and it would be too high). Doesn't seem like you can help your tenants even if you want to.

Reply to the comment left by GlanACC at 30/09/2024 - 13:13
As I say, it is commendable that you want to do right by your tenants.

My thought is that if you are happy to accept the rent at a £100 discount if you will, which from what you stated they would all have done so due to 3 years of perfect payments, then just make the rent that amount.

Reply to the comment left by The Forever Tenant at 30/09/2024 - 14:40
Yes, I will have to take that approach. As it happens I have just come from my solicitors on another matter and I ran the discount idea past her. Her response was 'oooohhhhh you can't do that' and waffled on about 14 days grace before you can charge interest etc.etc. - so scotch my original idea.

Has anyone had experience of the tribunal?. Are they fair, and not politically biased?. Does a landlord have to provide proof of market value with comparables or letting agent valuation?
Will a tribunal differentiate between 2 identical properties but one in a more desirable street to the other?
Will a tribunal differentiate between 2 identical properties where 1 is finished well and the other dated? Can a tribunal value bespoke properties with no comparables. Will a tribunal adjust its valuation to the rapidly changing monthly rising rent market?
I have so many doubts about this.

Reply to the comment left by David Nichols at 30/09/2024 - 16:33
Very good questions. Apparently they have rate band so they may value it at the lower end of the rate band.

It is going to be a nightmare to increase rents