New Tenancy Rent Increase

Coco8

Hi there,

I'm trying to clarify an issue regarding rent pressure zones and the 4% rent increase.

I was reading online that new tenancies after December 24th 2016 are subject to the 4% increase cap. Reading the RTB website I see that the landlord is required to make new tenants aware of the previous tenant's rent and only increase by 4%.

I am renting a 1 bedroom apartment in Dublin for €1400 a month and the previous tenants were paying somewhere in the region of €1100. I commenced this tenancy on 17th of November 2017. I had presumed that my landlord was allowed to pick any price she liked as the old tenants left and we had moved in with a new lease commencing.

My questions are:
1. If my area had been designated a rent pressure zone, was she entitled to raise the rent of the apartment by €300?

2. The couple above us (same landlord) moved into an apartment which I can confirm was €1100 a month previously, they are now paying €1500. They moved in on the 1st of July 2017 (definitely after the new legislation). Is this increase legal?

3. Why are apartments still so expensive considering the new rules came into effect from 24/12/2016? Surely people who have been renting in Dublin for example... probably paying €1000 for the last five years and now vacating the property. Now the rent for that property cannot be set higher than €1040 per month? A 4% increase. OR is it the case that she was allowed to increase it so much because it was so far below the current market value?

Apologies for the long post, just trying to get some clarification on the issue and any replies will be greatly appreciated.

dudara

If you go to the RTB website and look at the rent increase calculator, the following appears for a new tenancy

Additional Requirement for New Tenancies in Rent Pressure Zone
In the case of a new tenancy in a rent pressure zone, a landlord is required to furnish the tenant, in writing, with the following information at the commencement of the tenancy:
(i) The amount of rent that was last set under a tenancy for the dwelling;
(ii) The date the rent was last set under a tenancy for the dwelling;
(iii) 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 order to calculate the rent increase allowed, we would need to know the date that the previous rent had been set. Without that info, we can't say if it was a valid increase. However, a jump from €1,100 to €1,400 is extremely high and therefore unlikely to be valid.

Coco8

It wasn't given in writing but I know from meeting the previous tenants myself that they were living there for about 4 years... dunno when that price was set though.