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Landlord wants to increase rent almost 40%

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  • 18-07-2014 4:16pm
    #1
    Athony
    Registered Users Posts: 1 ✭


    Hello everyone

    I just have received a letter from the real estate agency that together with the new contract landlord will raise the rent 40% from the current price.

    Already live in this apartment for five years. The initial price was much lower than the landlord wants to increase it now.
    Over the last four years, we have asked landlord to reduce the price by 5% annually, and he did it.
    The last, fifth year, landlord has registered us as a tenants at a PRTB.
    I think probably it could be a reason to increase the rental price.

    The guy from the real estate agency says that rent arises because everywhere else rents went up. He also said, due to the fact that we live more than a year, landlord makes us a discount, and increases the price only 40%

    I agree that in the city center, apartment prices are slightly higher than what we currently paying. But it is possible to find an apartment cheaper than the landlord wants us to pay.

    So, I have 28 days to take a decision.

    What do you think about this?


Comments

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    #2
    The_Morrigan
    Moderators Posts: 9,368 ✭✭✭The_Morrigan


    Is the increase within the market rates for the area in which you live?


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    #3
    BigCOB
    Registered Users Posts: 54 ✭✭BigCOB


    Absolutely not. Rental increases are to be expected and are only allowed if they are considered REASONABLE, currently you would be looking at a 6% increase if anything. Contact Threshold for free legal advice on this front.


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    #4
    The_Morrigan
    Moderators Posts: 9,368 ✭✭✭The_Morrigan


    BigCOB wrote: »
    Absolutely not. Rental increases are to be expected and are only allowed if they are considered REASONABLE, currently you would be looking at a 6% increase if anything. Contact Threshold for free legal advice on this front.

    They are allowed once they are within current market rates and the review is done only once in a 12 month period....there doesn't have to be anything reasonable about it.


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    #5
    Arbiter of Good Taste
    Registered Users Posts: 2,200 ✭✭✭Arbiter of Good Taste


    BigCOB wrote: »
    Absolutely not. Rental increases are to be expected and are only allowed if they are considered REASONABLE, currently you would be looking at a 6% increase if anything. Contact Threshold for free legal advice on this front.


    The OP has been getting 5% decreases annually for the last few years, so arguably he is paying considerably under market value. So it's not improbable that the landlord's increase is perfectly reasonable.

    My tenants' lease is up for renewal in a few weeks and I am not increasing their rent as they are excellent tenants and I don't want to lose them. If I did increase their rent, thoughm I would be able to get 10-15% increase, so I don't know from where you pulled 6%.


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    #6
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Arbiter of Good Taste wrote: »
    The OP has been getting 5% decreases annually for the last few years, so arguably he is paying considerably under market value.

    Given that we don't know what the OP is paying and we don't know the current market rate is for his area how can we possibly conclude he is paying under market value.


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    #7
    Arbiter of Good Taste
    Registered Users Posts: 2,200 ✭✭✭Arbiter of Good Taste


    Graham wrote: »
    Given that we don't know what the OP is paying and we don't know the current market rate is for his area how can we possibly conclude he is paying under market value.

    Thus the use of the word "arguably"


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    #8
    BigCOB
    Registered Users Posts: 54 ✭✭BigCOB


    The original poster says that there rent is in line with others in the area, the Residential Tenancies Act says that no rental increase can be above the market. A 40% increase would be considered setting the rent above the market wouldn't it? But I'm not involved in this area so I bow to your knowledge.


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    #9
    BigCOB
    Registered Users Posts: 54 ✭✭BigCOB


    Arbiter of Good Taste wrote: »
    so I don't know from where you pulled 6%.

    National average increase in rents


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    #10
    The_Morrigan
    Moderators Posts: 9,368 ✭✭✭The_Morrigan


    BigCOB wrote: »
    The original poster says that there rent is in line with others in the area, the Residential Tenancies Act says that no rental increase can be above the market. A 40% increase would be considered setting the rent above the market wouldn't it? But I'm not involved in this area so I bow to your knowledge.

    No he didn't - He said
    I agree that in the city center, apartment prices are slightly higher than what we currently paying. But it is possible to find an apartment cheaper than the landlord wants us to pay.

    Hold fire until the OP comes back and tells us if the increase is within market rates for the area or not.


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    #11
    MouseTail
    Registered Users Posts: 1,663 ✭✭✭MouseTail


    BigCOB wrote: »
    National average increase in rents

    That is not the way it works. Rent levels are localised.


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    #12
    ted1
    Registered Users Posts: 23,327 ✭✭✭✭ted1


    BigCOB wrote: »
    Absolutely not. Rental increases are to be expected and are only allowed if they are considered REASONABLE, currently you would be looking at a 6% increase if anything. Contact Threshold for free legal advice on this front.

    Stop posting nonsense. The landlord can charge a raise them to a fare market rate.

    The landlord is not running a housing charity


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    #13
    BigCOB
    Registered Users Posts: 54 ✭✭BigCOB


    ted1 wrote: »
    Stop posting nonsense. The landlord can charge a raise them to a fare market rate.

    The landlord is not running a housing charity

    Grammatically correct nonsense though


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    #14
    ted1
    Registered Users Posts: 23,327 ✭✭✭✭ted1


    BigCOB wrote: »
    Grammatically correct nonsense though

    you forgot a full stop ;)

    I'd rather have incorrect grammar than post nonsense


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    #15
    The_Morrigan
    Moderators Posts: 9,368 ✭✭✭The_Morrigan


    BigCOB wrote: »
    Grammatically correct nonsense though
    ted1 wrote: »
    you forgot a full stop ;)

    I'd rather have incorrect grammar than post nonsense

    Cut it out please - take your squabbling to pm and stop derailing the thread.


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    #16
    MammaZita
    Banned (with Prison Access) Posts: 426 ✭✭MammaZita


    This question is meaningless without knowing if the proposed rent is in line with market rent for the area.

    We're going to be increasing the rent we charge our tenant by a similar percentage at the end of the year as we've been charging way under market rent so she's been getting a very easy ride over the last few years. We'll be sorry to see her go but that's life.


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    #17
    Grandpa Hassan
    Registered Users Posts: 1,945 ✭✭✭Grandpa Hassan


    The thread is pointless without knowing if it's currently below market rate. If it's 40%, or a little less if the property is of a quality that it justifies a fair premium to the market, then a 40% rise is totally expected. If this is taking it 40% above the market rate, then it is clearly indefensible. Absent that fact, this thread is just pointless squabbling


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