Rent increase

lilsparkle69

Hi I have been renting a small apartment for nearly four years, but the landlord wants to put the rent up quite considerably for the third year in a row. He said it "reflects the market rent" and that I need to contact the PRTB if I have an issue.

Honestly I'm worried I wont be able to keep up with the increase. Does anyone know if he is allowed increase rent every year? Or is it best I write a letter to the PRTB?

Thanks

Michael D Not Higgins

Have you checked what the market rate is in your area?

Triceratops Ballet

He is allowed to put it up once in every 12 month period afaik, but four years in a row seems excessive to me. What are rents in the area like, are they at the level that your new rent would be at for simillar properties? I would write to the PRTB anyway and see what they have to say you have nothing to lose by asking.

lilsparkle69

Thanks for the replies. A few flats / apartments in the area seem to be similar in price, but I find it shocking to have it increased straight after Christmas. We're paying just over 700 now since last January, now hes increasing to 800. My neighbour said that rent can't be increased every year, two years in a row fine, but a break should be given. I might try the PRTB, not sure what else to do

Michael D Not Higgins

lilsparkle69 wrote: »

Thanks for the replies. A few flats / apartments in the area seem to be similar in price, but I find it shocking to have it increased straight after Christmas. We're paying just over 700 now since last January, now hes increasing to 800. My neighbour said that rent can't be increased every year, two years in a row fine, but a break should be given. I might try the PRTB, not sure what else to do

It's every 12 months, your neighbour is wrong. I assume it's a one bed in Dublin? 800 sounds about right.

lilsparkle69

Yeah it sounds right, it is a one bed.

phunkymonk

Landlord is looking to increase our rent by 20pc and its in line with market rates tbh. They want the increase effective from next month so 4 weeks notice given. We have been in the apt for 2.5 yrs...am i correct in saying we should be give 8 weeks notice for an increase or am I misquoted? We had a 1 year lease originally and its been rolling since.

Any advice appreciated.

Its getting so ridiculous at this stage, its enough to drive me out of Dublin only for the lack of jobs in the west where I would go looking. Seriously need to try and entice companies to look outside of Dublin if at all possible.

murphaph

...or build up instead of out.

Penny Tration

phunkymonk wrote: »

Landlord is looking to increase our rent by 20pc and its in line with market rates tbh. They want the increase effective from next month so 4 weeks notice given. We have been in the apt for 2.5 yrs...am i correct in saying we should be give 8 weeks notice for an increase or am I misquoted? We had a 1 year lease originally and its been rolling since.

Any advice appreciated.

Its getting so ridiculous at this stage, its enough to drive me out of Dublin only for the lack of jobs in the west where I would go looking. Seriously need to try and entice companies to look outside of Dublin if at all possible.

You're entitled to 28 days notice of a rest increase. If it's in line with market rates, you don't really have any grounds to dispute it with the prtb tbh

Captain Chaos

Cheap for a 1 bed actually. I was paying 950 for a 1 bed 2 years ago. I have since moved but looking at them today they are going for 1100-1200 for a 1 bed is the same street/area. Just the way the Dublin market is, high demand and no decent supply.

phunkymonk

Jenny Thalia wrote: »

You're entitled to 28 days notice of a rest increase. If it's in line with market rates, you don't really have any grounds to dispute it with the prtb tbh

Ah ok fair enough I guess! Must've had it wrong. Cant imagine how young families renting in Dublin are coping. We aren't tied down with kids or mortgage so could be worse.

**off down to do the lotto** :pac:

Mellowbird

Maybe it's easy for me to say as I'm not a landlord, but a friend who is a landlord is renting out her apartment for 1,000 euros and I can see the market rate for other apartments in that block is 1,350 euros. She is 150,000 euros in negative equity for that apartment and is renting a house because of her growing family, so I think she's crazy not to get market rate to help her with her negative equity and do the best financially for her 2 small kids. She says she has good tenants and doesn't want to rock the boat but still I think that's nuts, losing 4,200 euros every year that can be used for her kids education, for example. Everyone has their own money issues, one should get fairly what they can in accordance to the market rate.

goz83

Mellowbird wrote: »

Maybe it's easy for me to say as I'm not a landlord, but a friend who is a landlord is renting out her apartment for 1,000 euros and I can see the market rate for other apartments in that block is 1,350 euros. She is 150,000 euros in negative equity for that apartment and is renting a house because of her growing family, so I think she's crazy not to get market rate to help her with her negative equity and do the best financially for her 2 small kids. She says she has good tenants and doesn't want to rock the boat but still I think that's nuts, losing 4,200 euros every year that can be used for her kids education, for example. Everyone has their own money issues, one should get fairly what they can in accordance to the market rate.

That's a bit emotive. Maybe that 4,200 is covering the tenants mothers cancer medication. Your point was clear enough without adding kids education unnecessarily into the mix. I suspect an increase in rent would not likely be soent on the kids education anyway.

Your friend may also realise that having good tenants is more valuable than an extra 4200 a year (before tax). I would suggest that a small increase of about 100-150 would work out best, as a compromise. Oh, and I am not a tenant, or a landlord, so I am not biased.

Mellowbird

I apologise if I sound emotive. I suppose because she worries about her family's finances I feel it's a waste she is under-utilising her potential income.

hfallada

goz83 wrote: »

That's a bit emotive. Maybe that 4,200 is covering the tenants mothers cancer medication. Your point was clear enough without adding kids education unnecessarily into the mix. I suspect an increase in rent would not likely be soent on the kids education anyway.

Your friend may also realise that having good tenants is more valuable than an extra 4200 a year (before tax). I would suggest that a small increase of about 100-150 would work out best, as a compromise. Oh, and I am not a tenant, or a landlord, so I am not biased.

But the LL should always aim to get the most rent as possible. A shop owner doesnt give you 20% off a packet of cigarettes everyday for your troubles. He aims to make as much money as possible, as we live in a free market economy. If you arent happy with the price, get your goods/service from someone else.The rent increase the LL would get, would go on her mortgage which is probably not covered by the rent. She can also use the extra rent to cover all the new taxes and charges on rental properties and rental income.

I would get your friend to move the rent up to market price. If they leave, you wont have an issue finding new tenants. If you are selective with the tenants eg professionals, good references. You friend should have no issues with new tenants. If she does, evict them within 6 months, so they can be evicted easily.

Losing €350 a month is a huge amount of money for the having "good tenants".

Grolschevik

hfallada wrote: »

But the LL should always aim to get the most rent as possible. A shop owner doesnt give you 20% off a packet of cigarettes everyday for your troubles. He aims to make as much money as possible, ".

It really depends on the nature of the relationship. Both my mechanic and my off-license give me discounts regularly.

It's often said that good tenants are worth their weight in gold. And after reading the many horror stories in this forum, I think that's quite apt.

goz83

hfallada wrote: »

But the LL should always aim to get the most rent as possible. A shop owner doesnt give you 20% off a packet of cigarettes everyday for your troubles. He aims to make as much money as possible, as we live in a free market economy. If you arent happy with the price, get your goods/service from someone else.The rent increase the LL would get, would go on her mortgage which is probably not covered by the rent. She can also use the extra rent to cover all the new taxes and charges on rental properties and rental income.

That's where you're wrong. thinking of it in terms of rent alone is really a poor business strategy. At the end of the day, the LL has to trust the tenants with a very valuable asset. Tenants with "good" references have caused damages into the thousands and disappeared into thin air, on so many occasions. A smart LL will gladly accept a little below market rate to hold onto hassle free tenants. I don't suggest advertising a vacancy below market rate in this climate, but if the market rate is on the rise, it's not always wise to up the rent to match the market.

hfallada wrote: »

I would get your friend to move the rent up to market price. If they leave, you wont have an issue finding new tenants. If you are selective with the tenants eg professionals, good references. You friend should have no issues with new tenants. If she does, evict them within 6 months, so they can be evicted easily.

I agree that the current rental rate in this case is too low, which is why I suggested a moderate increase. Finding new tenants is not a problem right now, but finding hassle free tenants is a different story. Some tenants are on the phone every other day to complain about a blown light bulb, dust on the windows, or the weather. It's also not always easy to evict problem tenants. It's a gamble and one I wouldn't take. A good tenant will appreciate an increase in rent if its shown to be a compromise between current rent and current market rate.

hfallada wrote: »

Losing €350 a month is a huge amount of money for the having "good tenants".

And it would take a lot of months at that rate to cover damages caused by a vindictive tenant. Imagine the water was left on, with the plugs left in. Tenant disappears. Repair bill appears......for the apartments below too. Food for thought. Risk assessment is worth it when considering potential consequences of matching market rate.

murphaph

goz83 wrote: »

And it would take a lot of months at that rate to cover damages caused by a vindictive tenant. Imagine the water was left on, with the plugs left in. Tenant disappears. Repair bill appears......for the apartments below too. Food for thought. Risk assessment is worth it when considering potential consequences of matching market rate.

Which is why any sensible LL will increase the rent to just shy of market rate. The tenant won't bother with all the hassle of moving then.

Ray Palmer

goz83 wrote: »

Your friend may also realise that having good tenants is more valuable than an extra 4200 a year (before tax)..

This only true if they are a "good tenant" which means better than paying your rent on time and not asking for anything as some people think. A good tenant is somebody who does more than the basics. People like to consider somebody a "good tenant" if they aren't a bad tenant who misses rent or damages something.

As a LL you maximise your income when you can the same way tenants try to reduce their rent as much as they can. That is the reality

The_Conductor

Ray Palmer wrote: »

This only true if they are a "good tenant" which means better than paying your rent on time and not asking for anything as some people think. A good tenant is somebody who does more than the basics. People like to consider somebody a "good tenant" if they aren't a bad tenant who misses rent or damages something.

As a LL you maximise your income when you can the same way tenants try to reduce their rent as much as they can. That is the reality

Basic business 101.

As to what constitutes a good tenant? I'm not going to try and define a good tenant here- but what Ray suggests is indeed true- simply paying your rent on time and not making every waking moment a living hell for the landlord- does not make you a good tenant. These are reasonable expectations. If you don't pay your rent on time- and you are constantly causing trouble for your landlord- then, yes, you probably are making his or her life hell- but it doesn't mean the inverse means your the perfect tenant either.......

Back to lilsparkle69's query- your neighbour is wrong- the landlord is entitled to review the rent every 12 months. In areas where rents have soared- particularly in Dublin and Cork cities- paying 800 a month for a 1 bed- is unfortunately, far from unusual. You may find some cheaper- but you most certainly will also find more expensive one.

I'd suggest you talk to the landlord and see can you come to a compromise. If you have been a good tenant for 4 years- you're more valuable to him- than a stranger walking in off the street who may cause him grief.

3 increases in a row- and this one, straight after Christmas- are bad timing- and its a tough time of the year- but unfortunately- thats pretty much it.

goz83

I agree with the conductor. But I would add that a good tenant is not necessarily going to email you each month with a list of small jobs and repairs done to maintain the property, so a good tenant, generally is someone you just won't hear from and who sticks to the rental agreement.

I rented for 2 years back in 2009/10 and the one complaint. I made one complaint when staying in a house in 2010. There was zero insulation and the heating was far from adequate. This was in the second half on the one year lease. The Landlords were greedy daughters, renting the house for their mother, who was under the impression that the property had been fully insulated the previous year. Double glazed windows have two panes of glass I told her. I didn't cause a fuss. In fact, i repaired lots of things, including sticking doors, a garden fence, the cooker, the bathroom lighting (new fittings at my expense), replaced leaky taps, shower hose, 20 year sofa and mattress. I never told the LL about all the stuff I did, with the exception of the sofa, because I was getting permission to dump it. They thought I was a bad tenant (for complaining about the insulation and heating they told their mother they had sorted) until they realised how much I had fixed when it came time to handing over the keys. I had sought a €100 reduction in rent for the winter months due to the fact that the heating had to be on almost all the time and it only heated one room properly. By that stage, it was too late and I had alternative accommodation organised.