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Rent decrease
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#1 Kabrsi

Posted 23 February 2012 - 08:55 PM

I'm not sure what I think, or if I can be bothered saying anything but just wanted your thoughts.

We have been renting a flat for 6 months in the UK until we managed to buy place of our own. That has now happened & we are moving out of the rental in April. It's all done privately (no agent) and we pay a set figure each month that includes everything (tv, Internet, gas,electric etc)

I just saw the new ad and the owner is now asking for less money, $80 less each month. Now I know prices can go up & down but this was only in August we started renting. Would you query it or just let it go? It could just be a case of bills decreasing I suppose.

Also, we live in a very 'easy to rent' area, there are never flats lying empty so wouldn't think the economy had anything to do with it

#2 3_for_me

Posted 23 February 2012 - 08:56 PM

Iwould let it go, maybe the lamdlord had a new valualtion done and the real estate is now reommending a low rent.

#3 casime

Posted 23 February 2012 - 08:57 PM

What do you expect?   Do you really think that he's going to turn around and refund you the rent you have already paid?   You signed a lease agreeing to pay a set figure and that's what you have to pay.

#4 YellowKittyGlenn

Posted 23 February 2012 - 09:06 PM

I'd let it go as there could be things that are no longer being offered in the rental price. So if the new tenant is now responsible for the tv for instance and that is around $80 a week or whatever it is then it would be a reason to decrease the rent. Plus the landlord is able to increase within reason but has decreased it, the mortgage could have come down so less to pay off meaning letting it decrease a bit

#5 -Emissary-

Posted 23 February 2012 - 09:07 PM


What exactly do you want out of it? Do you just want to know or do you want something more?

I would probably ask. Only because I would be curious to know why. Maybe he had a hard time securing you as a tenant last time?

#6 futureself

Posted 23 February 2012 - 09:12 PM

It's nothing to do with you anymore, so I wouldn't give it another thought. If I did it would be to assume that they no longer include utilities due to them going up so now the rent for the property is less as a standalone. Then I would move on with all I have to worry about with moving into a new house!

#7 Kabrsi

Posted 23 February 2012 - 09:13 PM

We never signed a lease, the landlord is a friend of a friend. Maybe that's why I'm questioning it.

#8 Kristina13

Posted 23 February 2012 - 09:17 PM

The letting agent reduced our rent by $10 a week on our house just recently when our 2 year old tenants moved out because prices had gone down despite us requesting to keep them as they were (we are getting a pretty high rent anyway) the bonus for us was there was no vacancy inbetween we had new tenants move in the day they left..... Perhaps that is what your landlord is hoping for and like everything there has been a downturn in real estate values.....

#9 Kristina13

Posted 23 February 2012 - 09:19 PM

Just saw your latest post -that is a bit weird considering it was done privately and you are friend of a friend!!!!

#10 Regular Show

Posted 23 February 2012 - 09:23 PM

They could have reduced the rent to have the placed occupied asap then plan on increasing the rent as soon as they can once the tenant is in.

#11 Guest_Craptacular_*

Posted 23 February 2012 - 09:31 PM

Maybe they're going to reduce it for tax reasons.

#12 Kabrsi

Posted 23 February 2012 - 09:35 PM

I agree that a good strategy is to reduce the rent to get new tenants in ASAP but where we are, that happens with every property even at the figure we are paying. We moved in here the day after the old tenants moved out & we were one of many applicants, the only reason we got it was because of previous post (friend of friend)

And this time around, it was only advertised last night and I've already arranged for 3 ppl to view it tomorrow. So it's a very in demand flat IYKWIM.

I'm known for being 'too nice', I'm inclined to let it go but wanted to make sure I'm not being a pushover.

#13 MahnaMahna

Posted 23 February 2012 - 09:39 PM

I would let it go. Yeah sure, maybe a bit odd, but really I don't know what you would hope to gain out of it.

Our landlord reduces our rent if interest rates get cut several months in a row. Of course it also rises if interest rates go back up but I think it is fantastic they work that way.

#14 Gangnam Style

Posted 23 February 2012 - 09:41 PM

It could be a tax issue. If the collect more rent than their mortgage interest then that may c*ck-up their tax.

And if you were a friend of a friend - did you pay them cash? Maybe they didn't declare it as income, and now they have to.

Maybe because April is the end of the fiscal year in the UK, and they want to reduce their income before then?  shrug.gif  Who knows. That's why it's called a "market".

#15 Kabrsi

Posted 23 February 2012 - 10:08 PM

QUOTE (Vaginosaurus-Rex @ 23/02/2012, 10:41 PM) <{POST_SNAPBACK}>
It could be a tax issue. If the collect more rent than their mortgage interest then that may c*ck-up their tax.

And if you were a friend of a friend - did you pay them cash? Maybe they didn't declare it as income, and now they have to.

Maybe because April is the end of the fiscal year in the UK, and they want to reduce their income before then?  shrug.gif  Who knows. That's why it's called a "market".


This sounds about right, we did pay cash. Thanks for helping me understand

#16 CallMeProtart

Posted 23 February 2012 - 10:52 PM

I must say I don't really understand how it could be a tax issue... but I don't know the tax system there very well.

I had been of the impression that the property market in the UK is doing pretty badly, so if rent is being calculated based on property value, then maybe it's gone down? I also wonder if they are asking the new tenants to sign a 12 month lease or something, whereas it sounds like you were on month by month (and did you have to pay a bond?) so that might be worth some discount. It sounds like, if the flat was in demand when you got it, it's not that you were getting charged too much - obviously people were willing to pay that. It's more like they are either charging too little (based on strange tax advice, a lowballing agent, or something) or else the market has gone down.


#17 -Emissary-

Posted 23 February 2012 - 10:57 PM

I don't believe there's any negative gearing over in the UK.

I, too, don't see how it could be a tax issue. Even if he was on a high tax bracket, surely $40 after tax in your pocket is better than nothing in your pocket just to avoid paying $40 of tax..

Edited by -Emissary-, 23 February 2012 - 10:58 PM.


#18 KC-

Posted 23 February 2012 - 11:28 PM

We own and rent out two properties in the UK - and I'd be surprised if its a tax issue, especially if they are resident in the UK (it may be more of an issue if they are Aust resident and paying tax on their foreign income, but I still think it is highly unlikely)

When the downturn in the UK was really biting, one of our tenants advised that they couldn't afford to pay the full rent anymore and either wanted a drop in rent or they would need to move out. They were good tenants, and we would have been out of pocket if we had had to readvertise, so we dropped the rent a little.

But we certainly wouldn't have approached our tenants and offered them a reduction in rent off our own bat. Rental properties are businesses. You only offer a reduced price if there is something that you gain from it - in our case it was reduced risk (we knew the tenant was reliable, and we avoided a vancany/relet process) When the tenant subsequently left (things got worse for them and they chose to return to S.Africa) we went back to market, we took advice on what was the going rate, and we charged that. In our case, things have recovered a little and we are now able to make up some of our loss. But that's just the luck of the market. If the market had fallen further, we would have had to have charged less.

Its a market economy. The price is based on what a purchaser is willing to pay. You were willing to pay that level of rent at the time. You can no more go back and ask for a refund on it now than you could if you had overpaid for a house that you had bought.

The fact that the landlord was a friend of a friend may have meant you COULD have got them to reduce the rent for you at the time, but you didn't. You can hardly go back now and ask them to pay you back money now. They could be charging less rent now just to get someone in quickly, or the terms of the rent could have changed. Did your rent include tv licence/council rates/utilities etc? They may now be charging these seperately because they don't have a friend of a friend relationship to reduce the risk. Or it could be a shorter term rental so they can rent for a premium during the olympics, or it could be that they are getting really shoddy advice from their real estate agent. No matter what the reason, its now a reason that is between the landlord and their new tenant. You paid a rent you were happy to at the time. That doesn't make you a pushover. But if you go back and challenge it now, then that would be inappropriate.

#19 Kabrsi

Posted 24 February 2012 - 02:13 AM

No, I'm not going to say anything, you are all right. It's what we agreed to, what we were comfortable with. I do know that it still includes all the same bills though.

But now....

I just got an email from landlord telling me she's had 20 inquiries, of those, 5 ppl will contact me regarding viewing times and "please do not discuss rent with them". Like she doesn't want me to find out. Grrr. HoHum I'll get over it I suppose  rolleyes.gif


Edited by Kabrsi, 24 February 2012 - 02:20 AM.





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