So landlord approached us about rent increase a year after we moved in. We are okay with the increase however, we are not okay with the contract renewal being a fixed term contract.
One of the reasons we choose this property was because the fixed term contract was for 6 months. Being unsure of future arrangements as a young couple we were unwilling to commit to fixed term longer than 6 months; this still remains the case. Being on a periodic contract gives us such peace of mind.
Now following the rent increase agreement, the landlord has initiated a new contract renewal via openrent. The new contract mentions a new 6 month fixed term from the month of rent increase. We are not okay with this, we want to continue on a periodic tenancy that we have been on for 6 months now.
Additionally this new contract includes a section mentioning a deposit that we have already paid a year ago when we moved in so the wording is confusing making it seems we are to pay another deposit as it seems we are entering a new contract because of the rent increase.
We love living here and our relationship with the landlord has been really good so far. We would like to keep it all that way.
Can someone please advise on how best to address this matter?
I would suggest you tell this to your Landlord. They may not be aware that the rent can be increased by mutual agreement, and as long as you both agree on the new rate, and you start to pay it, it becomes legally binding, and your existing rental contract would continue, albeit at the higher rent, and on a rolling basis. You could also agree the rental increase in an exchanged letter or email.
Your Landlord may not be an expert, as rental laws are complicated, or there might be reasons why they would prefer to renew, in which case you need to listen to their views, and agree between you both, the best way to proceed.
You could refuse to sign the new agreement, but it is important to keep your Landlord on side, so anything you can sort by mutual discussion and agreement, will always work out best for both of you.
Landlord has replied saying as he has already generated the new contract so he cannot undo it.
However, he also mentions that if we are to leave before the fixed term ends he will accept the one month notice to leave. Please kindly note the new contract states we can only give one month notice after the initial fixed term has ended so though he is saying this in text we will be signing a contract that says otherwise.
Is his whatsapp message legally binding over the contract?
It does sound as if the LL is inexperienced both with letting property and with OR. Your current tenancy cannot be cancelled without the proper notice being given. IOW, it remains in place, periodic, and all the LL has actually done is create a new document. It’s not a legally binding renewal until you sign it which I wouldn’t advise you do.
Maybe @Daz can advise if the new contract the LL has generated can be deleted by OR as it’s simply a doc in the OR system and not a legal tenancy agreement yet. If the LL is willing to let you go in the fixed term, then a new contract is pointless for them too.
In the meantime, talk to your LL and ask them when you need to pay the higher rent from and then assure him that you will pay this. Emphasise that as neither party needs a fixed term, there’s no point signing a contract.
Thank you for your reply. We have informed him again that we agree to the rent increase however, we are not sure about signing a new contract and entering a new fixed term. We have kindly asked him if he would be happy to approach Open Rent on this matter and get advice on how to proceed/process a rent increase without having to create a new fixed term tenancy agreement. Hopefully he takes no offence to this.