Notice of rent increase

scot1964

On behalf of friend not on Boards...

She has her house rented out almost 4 years now to same tenants, at much reduced market rent, never been increased. She wants to increase it fairly (€50/month for next 2 years) but legally. Steps to take..? (after speaking nicely with tenant)
- Notify tenant in writing 90 days in advance?
- New tenancy agreement as 4 years is up?
- First 6 months of new tenancy are no longer Part 4 protected?
- Anything else?

Finally, if tenant does not agree to increase, can she give tenant notice to quit at end of the 4 years (with 90days notice)?

Thanks

SarahS2013

Never heard of an incremental increase like that - I believe the law is that you can only increase it every 2 years so not sure how her idea would pan out.
If the tenants are there 4 years and 6 months then they have entered a 2nd part 4 tenancy which means they're not obliged to enter into another fixed term lease. The Part 4 comes to an end at the end of the 4 years; during the subsequent 6 months either party can choose to end the lease without reason (with appropriate notice). However if that 6 months has lapsed then they're in their second Part 4. This doesn't mean they're not subject to an increase.
Also believe the notice period would be 16 weeks for ending the lease, not 90 days.

scot1964

Thanks on the notice period. 4 years not up until a few months times hence the planning.
The increase isn't incremental, its an increase of €50 / per month on the current rent, which will be valid for 2 years.
So, if correct notice is given, and the increase is declined, she can end anytime between 4years and 4 years 6months? Is the notice still 16 weeks during this period?
Ta.

SarahS2013

If she's only increasing by €50 PM I'd imagine they'd snap her hand off given the current renting market!
Yep 4 years is 16 weeks notice - you'll find all the notice periods here if you scroll down http://www.citizensinformation.ie/en/housing/renting_a_home/if_your_landlord_wants_you_to_leave.html
I don't think it's a case that they can "decline" the increase - she's well within her rights to up the rent provided she's given the proper notice period.
And yes, she can decide to end the tenancy anywhere between 4 years and 4 years 6 months without reason, but again, would have to give the proper notice period.

MrMorooka

They can 'decline' - they can take a case with the PTRB if they feel the increase is inappropriate and until the case is resolved they are entitled to pay the previous rent, and that could be upwards of a year.

ChampagnePop

Does a tenant living between 4 years and 4 years 6 months lose their part IV rights? I know in they can be asked to leave without cause at 4 years, but I didn't know their rights would be removed for an additional 6 months.

SarahS2013

Further Part 4 tenancy
After 4 years of your tenancy have passed, your Part 4 tenancy ends and a new tenancy begins. You now have a further Part 4 tenancy. During the first 6 months of your further Part 4 tenancy, your landlord may end it at any time without having to give a reason – though you must get 112 days’ notice (16 weeks). After 6 months you again acquire security of tenure and you are now 6 months into a further 4-year cycle.

SarahS2013

MrMorooka wrote: »

They can 'decline' - they can take a case with the PTRB if they feel the increase is inappropriate and until the case is resolved they are entitled to pay the previous rent, and that could be upwards of a year.

I don't think there's anywhere in the country that would deem a €50 increase inappropriate

MrMorooka

SarahS2013 wrote: »

I don't think there's anywhere in the country that would deem a €50 increase inappropriate

Sure, but they can still take the case if they feel like being belligerent and avoiding the increase for months, just pointing out the possibility.

Baby01032012

Just to add if they did bring a case and were unsuccessful they would be liable for the increase back dated

SarahS2013

If they were to take a case, could the LL exercise the right to not continue with the tenancy provided they were in the 6 month window?

MrMorooka

Baby01032012 wrote: »

Just to add if they did bring a case and were unsuccessful they would be liable for the increase back dated

Only if the landlord independently goes to court and pays the fees associated with that to get the decision enforced, otherwise it's just a piece of paper. It's a strange system, all disputes must go to the PTRB, but its decisions are not legally binding in and of themselves.

Anyway, this is a bit off topic.

Mrs OBumble

Is she sure that 50 is enough of an increase? Remember it's the only increase she can have for the next 2 years.

Mine went up by 160, and IMHO this was totally reasonable.