Terminate v increased rent

K

kildon

Registered User
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157
Hi,

I gave my tenant notice that i intend to sell the property per the RTB guidelines. I explained that the mortgage cost has gone up 384 per month but the most i could increase it was 52 per mth per RTB caalculator and so it has become unaffordable and the hassle as well. The tenant has offered to pay more than the 52 per month and i would probably accept their offer but I think i would be breaking the rules (the law) and so I think i have to refuse. Is my reading of this correct in that there is nothing the tenant can do here as i have to comply with the rules and this sell the property is the only option available.

K
 
It would be breaking the rules.

You could agree to their offer but if the tenant were to subsequently raise it with the RTB they'd rule against you. You'd then have to start the eviction process again at the old rent level. Regardless of how trustworthy the tenant is, like you say, do you want the hassle.
 
Nope because you go above the RPZ. Silly rules mean more landlords exit the market thus adding to Govt housing car crash.
 
kildon said:
Thanks for the responses, I hate to have to do this but Ive no option.
K
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At least you tried, yourself and your tenant have a good case story for the housing minister.

I mean I assume you would be happy to reduce the rent back down should the rates go back down.

Awful situation for both to be in x
 
Bronte said:
Not a hope any of us landlords that used to do this or left rents as is will ever do so again thanks to the inept government constant battle against landlords. RPZ has been a disaster. Expect loads more like the OP when their mortgage rate fixes end.
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I was a landlord before you have my sympathy, never again!
 
E30chick said:
At least you tried, yourself and your tenant have a good case story for the housing minister.

I mean I assume you would be happy to reduce the rent back down should the rates go back down.

Awful situation for both to be in x
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The rent is about 600 below market rates due to long standing tenancy and rpz, 16 yrs. When you have a tracker interest payments were low but tax was high and now interest payments are high and taxes are lower. Complying with constantly changing rules is tough and the only landlords making significant gains are new ones, corporations or people who break the rules. Id actually welcome the rtb cracking down on rogue landlords as it would change the behaviours and perception of landlords, their not all bad.
 
kildon said:
Hi,

I gave my tenant notice that i intend to sell the property per the RTB guidelines. I explained that the mortgage cost has gone up 384 per month but the most i could increase it was 52 per mth per RTB caalculator and so it has become unaffordable and the hassle as well. The tenant has offered to pay more than the 52 per month and i would probably accept their offer but I think i would be breaking the rules (the law) and so I think i have to refuse. Is my reading of this correct in that there is nothing the tenant can do here as i have to comply with the rules and this sell the property is the only option available.

K
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You have to refuse. Your tenant if they decide to move house can then claim the overpayment back.
 
Talk to your tenant. If they are happy to pay more and this would make sure you hold on to the property I don’t see anything unethical here.

There’s a risk that they will turn around and take you to the RTB in future for a refund but it seems unlikely


Make sure that official rent increases 2% every year. Remain tax compliant.
 
This is how the RPZ have actually contributed to a net increase in tents. A minority though get locked into a low rent.

Happened in Berlin. Inevitable it would happen here. More likely because we left a loop hole for new tenancies. Which facilitates reits and such entering the market..

As interest rates rise those new landlords will have the same issue..
 
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