Your landlord cannot increase the rent whenever he wishes or by any amount. They must follow a certain set of rules according to the tenancy type. However, if you have been a troublesome renter, he may do so. For example, not making timely payments, breaching the agreement, or not meeting the deposit needs may make him increase the rent.
If you didn’t like the sudden rental increase, talk it out with the landlord. Analyse the reasons and possibilities for negotiating the deal. If you can relate, the blog may find you well.
7 Ways to save money on a rental increase
What individuals do not realise is that rental costs are subject to change. There are several tactics that you can use to negotiate a better deal. Most letting agents and landlords list properties at higher prices than the actual ones. They do so to keep the scope of negotiation. Precisely, if you don’t ask for it, you never get it.
Be polite and back up the argument with research. Analyse the rental hike of similar properties in the area and the yearly increase rate. Provide them with proof of getting better options. Convincing the landlord may help you save a few pounds more. Here are other ways to negotiate a rental increase expertly:
1) Analyse section 13 of the Housing Act 1998
Section 13 of the Housing Act allows landlords to increase rent for statutory periodic and other tenancy agreements. The new rent or hiked rent laws begin 6 months after the initial agreement.
Additionally, for a tenancy with a one-month agreement, he cannot increase rent within a month. Precisely, landlords can only increase the rent if you agree on a fixed-term agreement. Or he can do so only after the fixed-term tenancy period ends.
2) Review your lease term
If living in the property for long, review the terms. It will help you understand the legal rights, tenancy date, and the actual date of rental increase. Analyse the clause mentioned in small letters.
Check for the discrepancy in the landlord’s proposal for a rental increase. If you find something off, talk it out with the landlord. Knowing everything about the tenancy agreements helps you argue better.
3) Check the number of maintenance requests
Landlords like tenants posting minimal maintenance requests. You win if you are a responsible tenant and prefer doing it yourself. It limits your maintenance request applications until the rental agreement. You can use this as a plus point. He agrees if you share limited maintenance requests within a 1 year fixed term. You may be successful in negotiating the rental hike.
However, you may be thinking-
“How will I manage the repairs then”?
Check the intensity of the repair required. For example, minor repairs like – installing a CFL and fixing the leakage can be done DIY. Even if you need support, call experts to fix the leakage. Minimal cash flexibility makes it impossible.
Here, individuals with low income or facing joblessness can check loans for unemployed people. It provides extra cash flexibility to back your expenses with minimal income. Meanwhile, check the best ways to update part-time income for better financial and loan management.
- Demonstrate timely payment proofs
Paying rental payments timely is good in every financial term. First, it keeps your credit score healthy. Secondly, it grants you the power to negotiate the rental hike. Keep valid proof of timely rent payments despite low income. It grants credibility to you as a renter. The landlord may not want to lose a reliable tenant who regularly makes payments.
He may negotiate the rental hike accordingly. Next, agree to meet his terms. If your landlord wants you to set direct payments, do so. However, check whether it impacts other life needs. If so, arrange a solution with the landlord.
5) Acquaint him with the present financial situation
The landlord knows if you make the bare minimum payment on your rent. He still may be reluctant to increase the rent. You can counter the situation by ensuring transparency. Tell him every reason behind the financial crisis. Additionally, tell him about the efforts you invest regularly to improve the condition.
If you pay part rent but are regular with it, he understands. This way, you can renew the rental agreement with just a proportionate rental increase. In some cases, the landlord may defer the rental increase even after 52 weeks. This is only if the renter is loyal, does not damage the property, and maintains good conduct.
6) Clear previous dues (if any)
As mentioned above, you must prepare before arguing or haggling with a rental increase. Your landlord may not agree to negotiate on the part of pending payments. It makes your case weak in terms of credibility. Thus, work on it by re-analysing your finances.
Consider the best ways to save and clear the rental debt. If you skipped over 3 rent payments but want to negotiate, finance may help. For example, by consolidating rental payments on the credit report, you can win the landlord’s favour. Moreover, you do not need to guarantee with a third party.
Most tenants with low income worry about the guarantor thing. However, with regular income, balanced debts and a long credit history, you may get debt consolidation loans with no guarantor quickly. It bases an individual’s income and employment stability and details authenticity as the prime parameters for approval. You can clear these with a loan in easy instalments by consolidating the rental payments. Eventually, it improves credit and puts you in a stronger force to negotiate a better deal.
7) Sign up for a longer lease term
Longer lease terms may help you clock an affordable rental rate. It helps avoid frequent negotiations. Committing to a longer lease agreement allows you to occupy the space for a long time.
It grants the landlord the assurance of consistent payments even during slow revenue. He may reduce the costs of the new agreement to some extent. However, breaching the agreement may provoke legal action from the landlord’s side. Decide carefully by analysing all your options.
Bottom line
These are some tested ways to negotiate a rental increase successfully. Analyse your existing rent and the amount a landlord can legally increase. If you find it high, negotiate it. Provide reasons backed by proof to arrive at a suitable decision.
Alternatively, sign up for an extended lease agreement. It may help win over the landlord and reduce the new rental pay. Both new and existing renters can benefit from the above tips.
Anna Johnson has more than 11 years of experience in direct lending industry of the UK. She is the Senior Content Editor at 24cashflow where she is leading a large team of loan experts. During her career, she has helped the loan aspirants to use the particular loans in the best way and improve their financial lives and status.
Anna Johnson is known for her in-depth research of the UK loan marketplace, as she has worked with many major lending firms in her career. During her educational phase, she has done a research on ‘Finance Fundamentals for Growing Business’.
