Dodgy Rent Review?

callainach

Need some advice folks.

Landlord's agent has given notice of a rent increase. 4% hike, still very reasonable value relative to other properties in the area, adequate notice given, so all above board. Except for one thing - the timing.

We commenced our tenancy in April 2016 and the rent increase is due to come into effect from July 2017. From my understanding of the latest amendments to the Residential Tenancies Act, this falls well short of the 24-month non-review period required for tenancies that commenced before 24 December 2016 in rent pressure zones (we're in one).

A call to Threshold confirmed this, so I now have two options as I see it:

1. Say nothing and swallow the increase (which we can well afford), in the hopes this was just a clerical error on the agent's part and not a sign of more stunts to come.

2. Raise the error with the agent as politely as possible, convey that we're happy to pay, but just ask for clarification on the timing.

My first instinct is to go with (2) because it's the right thing to do, but I'm wary of putting up any kind of challenge to the owners as it could well end with us being turfed out somewhere down the line.

We're in the fortunate position that we can well afford the increase and we've a great relationship with the agents so far, so would we be shooting ourselves in the foot doing anything to jeopardize our position in this place?

What do ye reckon?

Baby01032012

Agent is right. You're wrong. Never ever listen to threshold, they haven't a clue. If you're in a rent pressure zone the review period is every 12 months. Review timing is correct, notice correct, rent review correct. Agent is doing it my the book.

callainach

Thanks for the reply. That seems to contradict what citizensinformation.ie are saying here (can't post working URLs because I'm new):

citizensinformation.ie/en/housing/renting_a_home/rent_increases.html#l8523b

We are an "existing tenancy" according to these criteria:

"For a new tenancy (starting on or after 24 December 2016) in a Rent Pressure Zone, the landlord may raise the rent once every 12 months. The maximum rent increase will be 4% per year. The landlord must give the tenant the following information, in writing, at the start of the tenancy:

- The amount of rent that was last set under a tenancy for the dwelling
- The date the rent was last set under a tenancy for the dwelling
- A statement as to how the rent set under the tenancy of the dwelling has been calculated, having regard to the Rent Pressure Zone formula

In existing tenancies (starting before 24 December 2016) the first rent review in a Rent Pressure Zone may take place a minimum of 24 months after the previous time the rent was set. The maximum rent increase will be 4% (which amounts to 2% per year since the previous rent was set). Subsequent rent reviews may take place after a minimum period of 12 months."

I also tried using the RTB's Rent Pressure Zone Calculator here:

rtb.ie/rent-pressure-zones/rpz-calculator

It returned "Review date must be greater than 24 months!" when I submitted our details.

myshirt

Again, another example of the dangers of Google and the dangers of threshold.

Manion

citizensinformation.ie is usually very good. I'd go with that.

davindub

You are correct, the 1st review is 24 months after the last review as per the conditions you stated and minimum 12 months thereafter.

dudara

As your tenancy was before Dec 2016, then it cannot be reviwed for 24 months. The agency should give you notice in April 2018, to come into effect July 2018

callainach

Cheers lads. The RTB website (rtb.ie/rent-pressure-zones/rent-pressure-zones) corroborates all of this - I assume the information there can be trusted?

So getting back to the dilemma, what are some of your opinions on whether I should raise this or not?

Any landlords here? Would making an issue of this sour your relationship with a tenant?

davindub

callainach wrote: »

Cheers lads. The RTB website (rtb.ie/rent-pressure-zones/rent-pressure-zones) corroborates all of this - I assume the information there can be trusted?

So getting back to the dilemma, what are some of your opinions on whether I should raise this or not?

Any landlords here? Would making an issue of this sour your relationship with a tenant?

Yes RTB and Threshold can be trusted for the basic information, some complex issues you may need a solicitor but that's not unique to the RTB act.

You most certainly should raise it with the agent, you might have a good relationship, but they know the dates you moved in and when they can review the rent.

I don't know about souring a relationship, I wouldn't act outside the RTB act and would be shamed if I was and caught out. But that's me, I respect tenants and am happy with my long term returns even before the madness of the last 24 months. I want my current tenants to remain so I don't mess them around, I won't say there are never any issues, but they do pay on time.

April 73

I'm a LL & I think you should raise the issue. You can do it politely & in a non-combatative way but you shouldn't have to pay an increased rent until you are actually liable to do so.

Manion

As you are dealing with an Agent I would certainly raise the issue.

xper

Manion wrote: »

As you are dealing with an Agent I would certainly raise the issue.

I concur. If you were dealing with an individual landlord directly then fostering the relationship might be a factor to consider. If its an agency, it really is just business and I wouldn't hesitate in pointing out that the rent review is invalid. Given they appear to have gone by the book in every other respect, I would expect that to be that.

callainach

OK, will raise the issue so.

Sound for the help lads.

Fol20

Ll here. Yea I would raise it politely with the agent. As others mentioned I wouldn't do it in a combative way and I wouldn't mention Prtb or threshold as then they will go onto the defensive. Just mention that you thought it may have been an error in the date as you thought it's 2 years from contract and then a year after that.

Duncanwooly

Hi lads,

I'm in a similar situation myself. I started a lease April of last year and assumed I'd be safe from a rent review for another 12 months. However, a little letter came through my door this morning. They've redone the bathroom and the kitchen. Can they increase the rent or is it an oversight or are they chancing their arm?

callainach

Duncanwooly wrote: »

Hi lads,

I'm in a similar situation myself. I started a lease April of last year and assumed I'd be safe from a rent review for another 12 months. However, a little letter came through my door this morning. They've redone the bathroom and the kitchen. Can they increase the rent or is it an oversight or are they chancing their arm?

I rang the agents and politely asked for clarification. They checked and said we were wrongly flagged for review due to a new system they've started using. They apologised and said to ignore the letter.

So based on my experience, I'd say definitely raise the issue politely and go from there.

Ms Doubtfire1

well, as per Law they are chancing their arm.
Up to you what you want to do.

Duncanwooly

Thanks I'll chase it up