Rent / deposit increase and new lease

awec

We live in an apartment complex where all apartments that aren't privately owned are leased out by the same management company who have offices and staff on site etc.

We have heard from a number of our neighbours that they have received correspondence recently indicating that a rent increase is being brought in - an increase of about 300 a month. They have been told to go to the offices to discuss a new lease.

They have also asked for more money for the deposit (the deposit was a months rent, they now want people to pay them the difference between the old and new rate). Can they do this / is this normal?

So far we have heard nothing, but our neighbours have all been here longer than us and we are still within our initial 12 months on the lease (we signed mid-July last year) so I expect we will be hearing about this increase in the next month or so.

I know that they are entitled to raise the rent once every 12 months in line with the market value and this appears to be near enough to market value (the price we signed on for last year was market value then too, it's crazy to think that it has gone up by 300 euro in 12 months).

My question is am I obliged to sign a new lease - i.e. do I have to sign up for another minimum 12 month term? Or how does this work?

We can afford the increase but I'd rather not have to commit to 12 more months.

As I said, we haven't heard the news yet but I expect we'll be hearing soon enough and would like to know exactly where we stand.

xper

The fact that you are leasing from a company rather than an individual matters not. All that matters is that you are leasing a self-contained unit for your exclusive use as a private residence. This means you are not obliged to sign a new lease. You can continue as a part 4 tenancy when the current fixed term lease runs it's course if that is what suits you. But yes, the rent can be changed as long as it is in line with the current market. However, asking for a higher deposit is a change in agreed terms of the tenancy and cannot happen if you don't agree to it.

awec

xper wrote: »

The fact that you are leasing from a company rather than an individual matters not. All that matters is that you are leasing a self-contained unit for your exclusive use as a private residence. This means you are not obliged to sign a new lease. You can continue as a part 4 tenancy when the current fixed term lease runs it's course if that is what suits you. But yes, the rent can be changed as long as it is in line with the current market. However, asking for a higher deposit is a change in agreed terms of the tenancy and cannot happen if you don't agree to it.

Yea, so basically I can pay the higher rent, but don't have to sign a new lease nor pay any more deposit?

And in refusing to sign a new lease or pay a new deposit, I can't be served any sort of eviction notice or whatever?

xper

Correct. You cannot be penalised or notified to leave for asserting your rights under the Residential Tenancies Act.

(They may or may not try and tell you otherwise depending on how competent and honest they are)