Surge in Rent

Tiesto

Basically i moved into a rented house about 3 months ago.
I took it over from my mate who went travelling..
There are 2 other people in the house...
We get on great. Its the perfect gaf, nice location and the rent is 1325 altogether per month. I have the double room so it costs me 475 of that..

In comparison with what i earn, its pricey enough but for the area and the proximity to work its just ideal

However i got a letter today for the letting company confirming that im taking over the lease from my mate and thats it to expire in January.
Fair enough but the landlord is wanting the rent to increase to 1600 quid a month then...
I thought increases in rent are gradual.. A few quid every few months.. but i have never heard of an increase like that!

I also would have thought the renting market isnt as big as it was but the landlord must think the opposite..

Based on anyone's experience, if you refuse to pay the new price, do they tell you to leave or try to negotiate?
I think it would be difficult for them to find 3 ppl to fill it for that price...

The_Conductor

The amount that the house might achieve depends entirely on in which area its in. Its not unusual for rents to jump- but the increase in rent must be in line with what similar properties are going for in the area (there are rules governing this). To be honest- you might be surprised at where rents are at- when you go to look- they did increase an awful lot over the last 18 months.

Rents to not rise gradually- a few quid here a few quid there- there is a process whereby a landlord sets the rent on an annual basis. You can feel free to negotiate with him- but if similar properties in the area are going for this amount, then its unlikely that he will be willing to budge.

Your own income- and your use of it for comparison factors, when you claim the rent is expensive, unfortunately is neither here nor there. It could very well be that you may have to accept that the place is simply beyond your budget and look elsewhere.

A lot of people who might have considered buying are holding off and renting- to see how the problems with the property market will play out. This has led to a shortening in supply of rental properties, particularly in towns and city centres, which are always the most desireable areas.

Your first step is to have a look at what similar properties in the area are making- if they are similar to the rent your landlord is proposing, I'd consider moving elsewhere to a cheaper area if it stretched me too far financially.

S.

Glenbhoy

http://www.askaboutmoney.com/showthread.php?t=65696&highlight=rents

According to this thread, rents may just be falling.

The_Conductor

Glenbhoy wrote:

http://www.askaboutmoney.com/showthread.php?t=65696&highlight=rents

According to this thread, rents may just be falling.

Yes, month on month- nationally.
Those figures do not take into account that the annual increase measured (in that survey) is still 12%- nor do they take into account that most of the rental properties on the market are not in city centres etc.

OP- Find out what comparable properties are renting for in your area- and use this as a baseline. I am guessing that you're fairly central.

S.