Rent Reviews -Comparables

Askthe EA

Im wondering if someone out there has any further information on this as a poster made the point recently and I cant seem to find a reference to it in the legislation (but then I'm not a lawyer).

We know that in the RTB sample of rent review notice, WAAAYYY at the bottom there is a foot note about comparable properties given must be in the last 4 weeks but I cannot find any actual timeframe mentioned in the legislation.

My recollection is that prior to the most recent RPZ legislation, the timeframe mentioned was simply in a "reasonable timeframe".

What are peoples thoughts?

Ms Doubtfire1

I thought the comparable properties were of the last 3 month..4 weeks seems a bit short if you move away from the pressure centers?

Askthe EA

Ms Doubtfire1 wrote: »

I thought the comparable properties were of the last 3 month..4 weeks seems a bit short if you move away from the pressure centers?

My thoughts exactly!!

dogbert27

You have to be given three months notice for a rent increase to begin.

So the rent increase that you will be given now, April, in comparison to properties over the last 4 weeks will in theory be cheaper then the 3 months notice you would be in given in say July given the way the market is going.

Askthe EA

dogbert27 wrote: »

You have to be given three months notice for a rent increase to begin.

So the rent increase that you will be given now, April, in comparison to properties over the last 4 weeks will in theory be cheaper then the 3 months notice you would be in given in say July given the way the market is going.

Thats not really the issue though. The point is, expecting there to be 3 comparable properties advertised within 4 weeks of a property is a bit rich, especially if the property is out of the city centres. As Mrs said above, I was always under the impression it was 12 weeks.

dogbert27

Askthe EA wrote: »

Thats not really the issue though. The point is, expecting there to be 3 comparable properties advertised within 4 weeks of a property is a bit rich, especially if the property is out of the city centres. As Mrs said above, I was always under the impression it was 12 weeks.

Actually from the PRTB website it just has to be the current market value of when the notice is being given but the notice period is 3 months, i.e. notice given today doesn't take affect until July 05th so that in July you start paying April's market value versus July's market value.

• It must state the amount of new rent and the date from which is to have effect.
• It must include a statement that a dispute must be referred to the Board on the expiry of 28 days from the receipt by the tenant of that notice or the date the new rent takes effect.
• It must include a statement by the landlord that it is their opinion that the new rent is not greater than market rent having regard to –
• The other terms of the tenancy
• Letting values of dwellings of a similar size, type and character and situated in a comparable area
• It must specify the rent amount for three comparable dwellings of a similar size, type and character and situated in a comparable area
• It must include the date on which the notice is signed
• It must be signed by the landlord or his/her authorised agent

Askthe EA

dogbert27 wrote: »

• Letting values of dwellings of a similar size, type and character and situated in a comparable area
• It must specify the rent amount for three comparable dwellings of a similar size, type and character and situated in a comparable area
  

But this is it. It doesnt say that the comparables must be in the preceding 4 weeks (or in any timeframe actually). That looks like a random figure that the RTB put in on a sample letter and has been carried as fact, when there is no legal basis to it.

dogbert27

Askthe EA wrote: »

But this is it. It doesnt say that the comparables must be in the preceding 4 weeks (or in any timeframe actually). That looks like a random figure that the RTB put in on a sample letter and has been carried as fact, when there is no legal basis to it.

Your original question was regarding time frames and as you saw yourself there is no time frame. It's just the market value at the time the notice is given.

So if I have a 3 bed semi in an area then I have to check for 3 bed semi's being advertised in my area or comparable area. If I only find 2 houses in my area I have to look for another area for the 3rd.

The only thing that I see that constitutes a legal basis is that a landlord cannot raise the rent above the current market value.

Michael D Not Higgins

Askthe EA wrote: »

But this is it. It doesnt say that the comparables must be in the preceding 4 weeks (or in any timeframe actually). That looks like a random figure that the RTB put in on a sample letter and has been carried as fact, when there is no legal basis to it.

http://www.irishstatutebook.ie/eli/2015/act/42/enacted/en/pdf

In this section "amount of rent sought" means the amount of rent
specified for the letting of a dwelling in an advertisement the date of
which falls within the period of 4 weeks immediately preceding the
date on which the notice referred to in subsection (2) is served.

Askthe EA

Thanks Michael. Thats really restrictive.

Michael D Not Higgins

Askthe EA wrote: »

Thanks Michael. Thats really restrictive.

Not really, the requirement is for comparable properties in comparable locations. It needn't be in the exact location of the actual property.

Ms Doubtfire1

not seeing anything in that PDF thats relevant to the queries?
?

Michael D Not Higgins

Ms Doubtfire1 wrote: »

not seeing anything in that PDF thats relevant to the queries?
?

I've quoted the relevant bit. It's in section 26 which amends section 22 in the Principal Act.