Holy cow! Rent going up by £125!

I just got paperwork from the letting agency saying our rent is going up £125 a month! Holy crap, we can't afford that! The only way we can is if we don't go visit my mother this year.

Is it possible to negotiate for a lower rate? What's the best way to do that? I'm just in shock and scared, as our other choice is to move. That's not only stressful, it's awfully expensive! And stressful, as our stuff wouldn't fit in any other apartment we saw, especially not a much cheaper one, as that's what we'd have to select to afford the move.

How much would it cost to buy boxes and hire movers to take us just a mile away? And how much is it to rent a storage unit somewhere (we have way to much stuff to fit anywhere but this over-sized apartment)? Is it safe to put things in a storage unit? God, this sucks!

Hi Groovy yank

That is a very large increase and I'm not surprised at you feeling shocked. What strikes me as a first impression is that the landlord is being greedy in order to cover his/her mortgage payments - and thats probably due to the fact with all the uncertainty in the mortgage industry, his/her 'discount rate of x years' is coming ot an end soon and any new mortgage payment they have to make is substantially higher.

The FIRST thing you need to do is investigate and research thoroughly what similar apartments/flats in your block, street and area are going for - the closer to you the better. This will give you a good basis in writing back to the landlord to show what the going rate is. If it's roughly what you pay now, then a £125 increase is way too greedy and you 'should' look for other places to go (i know thats easier said than done - but why should you be forced to pay over the odds in the same area?) if the other places are indeed 90, 100, 110 per month more than you, then be prepared to pay more to stay in the place.

Personally, my rental apartment achieves the absolute maximum in the area it's in, there are exactly the same flats as mine which get £50-75 less than mine (or at least when i last talked to the other landlords) as I totally refurbished it, put in high quality items, total new bathroom and kitchen and many many other aspects too. If I ask for more, then it makes sense for the tenant to move to another part of Slough where the area is better and they can rent one of these fancy new build flats for only 50-75-100 per month more.

If you can assess your place and point out any flaws if need be that could go to your negotiations with the landlord. I obviously don't knwo the reasons for such a large increase in rent, but I strongly suspect it's becuase they have to remortgage and the rate their getting isnt so discounted - putting them in more of a 'reality' situation.
Stand your ground, and if they're adamant you pay it even if it's way beyond similar place rents then really do consider moving out - but make sure you point out to them it's they who'll have an empty unrented place and if you can negotiate a better rate it works out better for them to keep you there so they dont fall back on mortgage payments!

I don't know too much about the box storage places and moving costs etc, but for just a mile away, it may make more sense to find a man with a van or hire one for the weekend yourselfs and make lots of to and fro trips..

Good luck!
DtM! West London & Slough UK!

I'm a landlord myself.  Sounds like he's just greedy.  Don't even negotiate, just find another place.  You will save in the end.

check your lease. we have a clause to cap increases at 5% in line with the actual property value increase or something to that effect.

My shoebox went up an additional £25 and I challenged it. The increase is due to a combination of things mortgage, inflation and anticipation of required energy efficiency changes for 2008.

I am excited to get double paned windows.  I also negotiated some other upgrades but the fact is I know I was already paying the cheapest rent for the building.

I'm a landlord myself.  Sounds like he's just greedy.  Don't even negotiate, just find another place.  You will save in the end.

As Dennis stated, a lot of people with fixed rate mortgages are going to find themselves paying quite a bit more if their term comes to an end next year.  It is *possible* that the landlord's rate will go up.  And I'm sure you'd agree that the landlord would like to continue making money on their investment, not lose it.

We're lucky our mortgage rate is fixed until 2010 - because if it were going up even £25 per month next year, we'd never be able to afford it.

As Dennis stated, a lot of people with fixed rate mortgages are going to find themselves paying quite a bit more if their term comes to an end next year.  It is *possible* that the landlord's rate will go up.  And I'm sure you'd agree that the landlord would like to continue making money on their investment, not lose it.

We're lucky our mortgage rate is fixed until 2010 - because if it were going up even £25 per month next year, we'd never be able to afford it.

you mean unfixed?  it's usually never a good decision to get unfixed mortgages, even fixed for several years is bad.  the only upside is if you WILL move before the rate expires.  alot of people in America are getting screwed because they took out short term ARMs.  Many are finding that they can't pay and are getting foreclosed.  In any case 25 isn't a bad increase.

Mortgages in the UK are somewhat different to mortgages in the US.

And to some people, even £25 more per month on expenses would be enough to break them.