Rent increase

conor05

Hi Folks

Just a quick question.

Myself, partner and child started rented last February and signed one year lease with letting agency. We paying 800p/m for 3 bed in North east.
Contacted the agency today to see if it's ok to stay for a second year and they said yes, but that they would be adjusting the lease so that the first 6 months would stay at 800p/m but the second 6 months would be increasing to 900p/m from July 2017 onwards.

I presume that is allowed by letting agency is it?

Thanks

Ms Doubtfire1

Nope. you're under part 4 now with or without a contract.They can only increase after 2 years.You have indicated you will stay, that's all that's required.

Ms Doubtfire1

oi-see answer on other thread.You're under part 4 now and have indicated you want to stay.they can't increase until the second annual renewal - another year so

Michael D Not Higgins

I've split your post to a separate thread as it didn't directly align with the other thread. In answer to your question, no they can't do that. They may only review the rent 24 months after the start of the tenancy, they must provide 90 days notice and 3 similar example properties to establish market rate and it must be written.

This is assuming by North East, you don't mean in Northern Ireland where a different regime would be in effect.

Michael D Not Higgins

Ms Doubtfire1 wrote: »

oi-see answer on other thread.You're under part 4 now and have indicated you want to stay.they can't increase until the second annual renewal - another year so

I've moved your post over too.

Ms Doubtfire1

was already wondering if I had gone mad...;-)

conor05

Yes North East in the South

The letting agency wants a response by this Friday as our renewal is 5th Feb.

So I can tell her on the phone tomorrow that we want to stay for 800p/m our current rent and if she says well then we will not be renewing your lease, I tell them they need to give me 90 day written notice and the 3 other price similarity local rentals.

But I presume they would just give us the 90 day written warning and get new tenants for the higher rent when we leave.

Thanks for the answers, very much appreciated

Ms Doubtfire1

Nope - if they tell you they won't renew the lease tell them to send you that in writing and involve the tenancy board.

Mrs OBumble

You are now on a part 4 tenancy. No need to renew the lease. And they can only end the tenancy in some very specific circumstances.

antoinolachtnai

Ms Doubtfire1 wrote: »

Nope - if they tell you they won't renew the lease tell them to send you that in writing and involve the tenancy board.

Well they don't need to renew the lease.

The OP really doesn't have to anything to continue the tenancy.

As a matter of politeness you can contact them and say you plan to stay on. If they really press you, you can say you heard you might be able to stay on under Part 4 and you want to investigate that possibility. I would try to avoid having a row on the phone. If they want to send you out a new lease to sign they can. You don't need to sign it though.

What might be going on behind the scenes here is that the agent is trying to secure a new lease and get a fresh commission payment from the landlord which will be justified by the lease commitment and the increase obtained. It is a silly game.

Michael D Not Higgins

conor05 wrote: »

Yes North East in the South

The letting agency wants a response by this Friday as our renewal is 5th Feb.

So I can tell her on the phone tomorrow that we want to stay for 800p/m our current rent and if she says well then we will not be renewing your lease, I tell them they need to give me 90 day written notice and the 3 other price similarity local rentals.

But I presume they would just give us the 90 day written warning and get new tenants for the higher rent when we leave.

Thanks for the answers, very much appreciated

As above, you have security of tenure and they can't evict you just because you won't accept an illegal rent increase. They can't review the rent until February 2018.

Michael D Not Higgins

antoinolachtnai wrote: »

What might be going on behind the scenes here is that the agent is trying to secure a new lease and get a fresh commission payment from the landlord which will be justified by the lease commitment and the increase obtained. It is a silly game.

Exactly this, the agent makes another month's rent off the landlord by getting another lease signed.

davindub

conor05 wrote: »

Hi Folks

Just a quick question.

Myself, partner and child started rented last February and signed one year lease with letting agency. We paying 800p/m for 3 bed in North east.
Contacted the agency today to see if it's ok to stay for a second year and they said yes, but that they would be adjusting the lease so that the first 6 months would stay at 800p/m but the second 6 months would be increasing to 900p/m from July 2017 onwards.

I presume that is allowed by letting agency is it?

Thanks

Shocking that they would try this! Might be a good story for your local paper, imagine the amount of people they rip off?

Graces7

Michael D Not Higgins wrote: »

Exactly this, the agent makes another month's rent off the landlord by getting another lease signed.

Thank you for this, which I had not thought of. I have signed a one year lease and the agent spoke of renewing it then but I had already decided re Part 4 as that is what I have always done.

danger_mouse_tm

Just to come in here with my own two cents here (and apologies if I'm thread hijacking!), I'm on the other side of the fence in a sense that I'm the landlord of a house.  My renters will be starting their third year in August and we have contemplated a rent increase as we are charging far less than any similar property in the area.  We got unexpectedly stung last year by our letting agent charging us a months rent for renewing the lease (on top of their usual monthly fee) which left us scrambling to make up the mortgage payment.  So with this section 4 would I be right in saying that the tenants don't have to sign a new lease, they can just carry on paying rent?

Michael D Not Higgins

danger_mouse_tm wrote: »

Just to come in here with my own two cents here (and apologies if I'm thread hijacking!), I'm on the other side of the fence in a sense that I'm the landlord of a house.  My renters will be starting their third year in August and we have contemplated a rent increase as we are charging far less than any similar property in the area.  We got unexpectedly stung last year by our letting agent charging us a months rent for renewing the lease (on top of their usual monthly fee) which left us scrambling to make up the mortgage payment.  So with this section 4 would I be right in saying that the tenants don't have to sign a new lease, they can just carry on paying rent?

Yes, it's a money making exercise for the letting agent. The lease does give you a bit of certainty in that the tenants have contracted another year, but in the current market, you'd have a queue of people willing to take it up in most places.

davindub

davindub wrote: »

Shocking that they would try this! Might be a good story for your local paper, imagine the amount of people they rip off?

You would be surprised how the majority of people know so little about the rules around renting. Most people still think you have to sign a lease every year and have never even heard of part 4 tenancy etc. I'd say there are loads of people having their rent increased when it shouldnt all around the county as people don't understand the rules know anything about the 2 year freeze etc. Particularly non-Irish people living here who don't follow Irish media closely as where else would you hear about new rules when they come in etc.

t0mmy71

Hi, similar situation to conor05, my lease is up soon and I live in Dublin city. I intend on renewing the lease. I'm worried that my rent will increase and I can't afford it. It hasn't increased in the last two years. Can the landlord increase it above the 4% annual limit set out in the recent pressure zone areas or does this not matter because it is outside the lease. I can afford the rent increase if it is inside the 4% increase per annum. It hasn't increased in two years so I expect an increase of some sort.

Thanks

Paulw

t0mmy71 wrote: »

Hi, similar situation to conor05, my lease is up soon and I live in Dublin city. I intend on renewing the lease. I'm worried that my rent will increase and I can't afford it. It hasn't increased in the last two years. Can the landlord increase it above the 4% annual limit set out in the recent pressure zone areas or does this not matter because it is outside the lease. I can afford the rent increase if it is inside the 4% increase per annum. It hasn't increased in two years so I expect an increase of some sort.

Thanks

It has to be an increase to a maximum of 4% as per the December legislation. They also must give proper notice of rent increase.

t0mmy71

Thanks Paulw, that's good to know, my only concern is that the apartment is about 500 euro under what other similar newly listed apartments in the complex are going for (because of the price freeze for two years) so I thought they might have some reason to argue it's considerably below the market value. But if the 4% limit per year is irrelevant to market levels in the area and the fact that the lease is up but I wish to renew it then I should be good.

Paulw

You should also research Part IV tenancy. You don't need a new lease.

Rent increase can be up to a maximum of 4% of the current rent, and whatever else the rent in the area is doesn't matter.

t0mmy71

Paulw wrote: »

You should also research Part IV tenancy. You don't need a new lease.

Rent increase can be up to a maximum of 4% of the current rent, and whatever else the rent in the area is doesn't matter.

That's reassuring to know thanks, yes I must, I only glanced over that before, will take a closer look.

testicles

This post has been deleted.

Paulw

testicles wrote: »

This post has been deleted.

Yep, and Dublin city is one of those, as per the posters query.

Denny_Crane

For the Landlords: Don't bother with a letting agency. Total waste of money. In some situations it's worth it for people, perhaps living abroad or what have you, but don't make using one the default position. Adver on DAFT, a couple of viewings, a small amount of paperwork and for me 45 minutes, each year, with an accountant who does a load of other things for me.

conor05

Hi Folks,

Great news, the letting agency rang this morning and said our rent will not be increasing. It took them four days to respond to us when we told them about our Part 4 rights and I am certain it was absolutely killing them not to increase out rent by their phone manner with me when they called back.
We have a lot of foreign workers in our town here coming and going with multinationals and I am sure they are not aware of their rights and letting agencies are taking advantage of their situation.

Thanks for the advice, very much appreciated folks.