Increasing rent after current contract

bonjurkes

I am looking for a new apartment for myself and I believe I found and okay one (expensive one tho). There is a couple living in it already and they will leave the house next month (after 6 months of living in it) and they are looking to transfer contract on me or to lucky renter.

There is an agency handling the apartment block, and there is 6 month more time on the current tenancy agreement. My question is what is the law/rules about increasing the house rent?

I told them to ask agency (but I doubt they will be honest about it), the current tenancy agreement has been signed on June 2016, and it's due to expire on June 2017 and I am planning to move there November 2016.

In this case, is agency allowed to increase rent while name on contract changes to mine, or can they increase the rent after expiration of the current contract (June 2017).

The rent is on top level already (975 for double bedroom) and I doubt there is possibility to increase it even more but I just don't want to move from apartment after 7 months because they decide to increase rent.

TheDoc

Well for a start I'd say be careful what you are signing up to. I'd assume the tenancy agreement is between the couple and the agency, with explicit names. You can't just "hand" that over to someone else.

If I was a landlord and came around one day to see a different tenant there, and you describe the above, I'd be calling reafing them out of the house.

So I'd be asking the couple are they being legit with you. You could just take over the lease but be properly named on it. In saying that, the agency might not be happy with that and may want to interview/check you out, or maybe want to re-let the property to market if they want to get higher rent again.

If you did get it all sorted, there is a two year timeframe now for rent reviews, whether that is from the initial lease or when you arrive, I couldn't tell you. But I really don't see the issue with just you taking the place and getting a fresh lease.

Well I do see the issue, that couple probably scared their deposit will be kept for breaking the lease early, and your probably worried the agency won't immediately accept you as a replacement.

I'd just urge you to be careful and make it legit as possible. If the couple arn't being straight with you, you could find yourself being turfed out on the street, nevermind a rent increase six months down the line.

bonjurkes

Thanks TheDoc for the tips. Well I never thought it this detailed. Couple want their deposit back and of course it will be official a.k.a agency will be told about the tenant change (they don't know if they will be fine with it or not actually). And I also asked them to ask about this rent increase thing.

Because as I see, agencies are being so smart and saying that : oh this area is so popular so we increased the rent, when the current agreement expires.

Would protection about rent changes apply to me if the tenancy on the current agreement change me this month, or they will still have a chance to offer me "higher rent" when the current agreement expires at June 2017, this is the part I am not sure about .

Well for now, we are waiting answer from agency, and I hope they are honest ones.

Ms Doubtfire1

Frankly, I would be very wary.This is a prime example of the scams that are out there. Make sure you have a tenancy agreement from the agency in your hand BEFORE handing over any money. Do nothing by word of mouth, do NOT hand money over to the current tenants - everything through agency. If they refuse, walk away. You're being scammed.

davo10

The threshold website is not great but it does nearly always error on the side of the tenant. But their website does say that an assignment of the lease just allows the current tenant to leave early without having to pay the remainder of the lease. A new cycle begins so new rent can apply. This stands to reason as if the LL wants to readvertise at a higher rent, he/she just refuses the current tenant permission to assign and the tenant can walk away.

So, it would seem that rent cannot be increased for 2 years after the date of assignment, but as this is a new rental agreement/cycle, the rent may be increased at the time of assignment. Unless the LL agrees to it, you may have to pay more than the current tenants when you take over the property.

Threshold site:

Assignment is where you find someone to replace you and you leave the tenancy; the person who replaces you becomes the tenant of the landlord. A new tenancy cycle begins and you no longer have any responsibilities under the tenancy.

bonjurkes

davo10 thanks for the explanation. Is is possible to get approval or promise that agency or LL will not raise the rent when the current agreement is over? Like verbal promise doesn't mean anything but is it something doable to get paper from agency or LL that promises rent will be same, or no one will be up for it?

The apartment says "this apartment is managed by bla bla agency" so I doubt I will deal with a real LL, I just don't want to look for a new place after 6 months because someone gets greedy and ask for higher rent just because they can.

davo10

bonjurkes wrote: »

davo10 thanks for the explanation. Is is possible to get approval or promise that agency or LL will not raise the rent when the current agreement is over? Like verbal promise doesn't mean anything but is it something doable to get paper from agency or LL that promises rent will be same, or no one will be up for it?

The apartment says "this apartment is managed by bla bla agency" so I doubt I will deal with a real LL, I just don't want to look for a new place after 6 months because someone gets greedy and ask for higher rent just because they can.

Op, when you move in, the previous tenants agreement is finished, he/she has no more responcibility for renting the property and a new tenancy cycle begins with you. As such, the rent cannot be increased for 2 years from the date you begin your tenancy, even if they wanted to, they legally can't increase it until November 2018. But, they can increase the rent when you move in next month, the current agreement with the existing tenant ends and a new one begins for you, possibly at a new higher rate.

Now just in case you know who comes on here and says the LL can't do that or that you should complain to the RTB, until the LL agrees to accept you as a tenant, you have no tenancy and no rights. If the LL wants to up the rent when the current tenant moves out, the LL just has to refuse to allow the lease to be assigned, the current tenant gets to walk and the LL gets to advertise at a new, higher rate.

So op, ideally the current tenant gets to assign lease to you, what rate you pay at the time of assignment cannot increase for 2 years but, the LL may want to increase rent before you move in and if he/she does, then either you pay it or the apartment goes up on daft for a new tenant.

bonjurkes

Thank you so much for the simple explanation davo10, now I got it!