RAS contract about to expire: renegotiation?

Kibby

I have a house let out to SDCC via the RAS. My four-year contract is up next year and I was wondering if any of you had experience of negotiating a new contract/rent increase with your local authority.

My tenant is competent and uncomplaining so I don't want to be hard-nosed, but I've seen other posts where, mid-contract, local authorities reduced the rent.
If that happens I'll have to abandon the scheme and bid her goodbye

The_Conductor

If you haven't had a significant increase in rent from the council over the last 4 years- leave the scheme. I've numerous instances of colleagues who have had their RAS rental income revised upwards in keeping with the prevailing rent increases. Its not hard nosed to seek the going RAS rates for your property (typically open market rate minus 10%)- its just business (and in any event- seeing as Revenue get a significant slice of the gross rent straight back to them- its a perfectly closed circle.........)

Not renegotiating the rent- is silly- plain and simple.
Also- it is the job of the council to house the tenant- not you.
While they are a good tenant- if you haven't had a rent increase in 4 years- you are subsidising them significantly.

newacc2015

You have the upper hand in negotiations. The councils in Dublin are seriously struggling to find new places to rent. They will do their best to keep existing ones

Kibby

Thanks for your replies!

PRTB calculator shows a house like mine - Clondalkin 3 bed terraced - fetching €975 in Q1 2015. I'm getting €890 or 91% of market. So maybe I'm not doing too badly. Contract is up next June so might put the feelers out with SDCC.

newacc2015

Kibby wrote: »

Thanks for your replies!

PRTB calculator shows a house like mine - Clondalkin 3 bed terraced - fetching €975 in Q1 2015. I'm getting €890 or 91% of market. So maybe I'm not doing too badly. Contract is up next June so might put the feelers out with SDCC.

The PRTB calculation is useless. Under their index. There is no different between a massive 3 bed, 2 storey over basement in Ballsbridge and a 3 bed former council house in Ringsend. Call up a local agent and ask what they would get open market on your house to rent, then add 5-15% as agents will not usually get the full market rent(Sales are their priority)

Immy

They sent me a letter about 4 months before contract ended asking me if I was happy to renew at €x rent. I rang them asked for more and they increased offer. I then signed offer with increased rent, sent it back, job done.

I also got a review 2 years into last contract. Again they sent me a letter saying rent wouldn't be increased and I sent back a letter saying I wanted an increase and they said ok.

So basically whatever they offer, ask for more.

My rent is less that MV but my tenant is amazing so worth it for me.

Kibby

Immy wrote: »

They sent me a letter about 4 months before contract ended asking me if I was happy to renew at €x rent. I rang them asked for more and they increased offer. I then signed offer with increased rent, sent it back, job done.

I also got a review 2 years into last contract. Again they sent me a letter saying rent wouldn't be increased and I sent back a letter saying I wanted an increase and they said ok.

So basically whatever they offer, ask for more.

My rent is less that MV but my tenant is amazing so worth it for me.

Thanks, that's encouraging news. What local authority are you dealing with?

My tenant is great too and the peace of mind is worth the markdown.

Immy

Kibby wrote: »

Thanks, that's encouraging news. What local authority are you dealing with?

My tenant is great too and the peace of mind is worth the markdown.

House is in Dublin12, so South City

5cooter

Will any or all of a negotiated increase be passed onto the tenant?

athtrasna

5cooter wrote: »

Will any or all of a negotiated increase be passed onto the tenant?

With RAS the council pay the landlord and the tenant pays the council? The landlord is not involved in determining what the tenant is liable to pay the council.