Can I increase rent on my rental apartment above the 4% cap with mutual concent of te

Linto

Hi,
I have an apartment rented out for 6 years with no increase in rent over that period - same tenent.
It's currently 750 under market rate (€900, mkt rate @ €1,650). Just never got round to increasing and now find myself in a very difficult situation.
The apartment is in good condition so not something that can be rennovated to reset to market rate.
If we can't get closer to market rate we will need to sell this year.
Any advice would be greatly appreciated.
Specifically, can I request a rent raise that goes beyond the 4% but keeps it's modestly below full market rate that benefits both - mutually agreed with tenant and myself. Otherwise tenant will be out anyway when I sell.

I need to make a call v soon as I'm struggling with mortgage repayments.

Thanks in advance,

Graham

Linto wrote: »

Specifically, can I request a rent raise that goes beyond the 4% but keeps it's modestly below full market rate that benefits both - mutually agreed with tenant and myself. Otherwise tenant will be out anyway when I sell.

The simple answer is no.

If you haven't raised the rent for a while you may be entitled to raise the rent slightly above the 4% but that's it. There's a formula on the RTB website to help you work out the maximum.

If you think about it, there would be no point in the cap if a landlord was able to 'encourage' a tenant to consent to increases in excess of the cap.

jimmycrackcorm

The not so simple answer is that you can. However at any point after your tenant can take you to the RTB who will then force you to repay the excess rent.

Better to sell.

burkey2k0

You're able to charge 2% per year for each year since it was last raised, so max you're allowed raise it is 12% in your specific situation from the detail you've given.

thereality

If you don't have a tracker and are in positive equity, you might be better off selling your apartment and buying another without the rent cap. Even if you increase it by 12% as another poster suggest, you are still significantly off the market rate.

The anti-landlord laws are getting nutter and nutter each year. I would hazard a guess, that the rent cap will never be removed. You might just be better off selling

alias no.9

Assuming it's now exactly 6 years since the rent was set, you'll have to give 3 months notice so that will make it 75 months since the rent was set when any increase comes into place.

The RTB formula for the allowable new rent is 900 x (1 + 0.04 x 75 / 12) so you can set the new rent at a maximum of €1125 starting in 3 months time if you give notice now. All this is dependent on €1125 being less than or equal to the market rent in the area, which you say it is.

kirving

thereality wrote: »

Even if you increase it by 12% as another poster suggest, you are still significantly off the market rate.

The anti-landlord laws are getting nutter and nutter each year. I would hazard a guess, that the rent cap will never be removed. You might just be better off selling

I get that the rate is what the market will bear, but so we're house prices and we all know how that went. The current price of rent in many areas is not sustainable, and plenty of people are making a fortune while it lasts.

There are certainly some landlords who will be burned by the rent cap, but they're not inherently anti-landlord laws as you suggest.

Samuel T. Cogley

Kevin Irving wrote: »

I get that the rate is what the market will bear, but so we're house prices and we all know how that went. The current price of rent in many areas is not sustainable, and plenty of people are making a fortune while it lasts.

There are certainly some landlords who will be burned by the rent cap, but they're not inherently anti-landlord laws as you suggest.

I think he's referring to the myriad of other busy-work legislation that's been thrown our way in addition to the cap.

murphaph

Sell before the government passes legislation that prevents you from evicting the tenants for this reason and locking you into way under market rates forever.

Government should have considered cases like yours when they introduced the rent caps. Your tenants can blame them.

Dr_Kolossus

Can you give tenant notice, (within allowable period of course)and let as air bnb for shorter periods?

I think there is a time limit where, if it has not been a residential tenancy e.g. 2 years, you can re let as residential. At this time you can then reset to mkt rent.

I could be talking crap though, anyone know if this is possible?

April 73

There have been rumours of further interference in the market by disallowing wanting to sell as a reason to allow eviction of tenants. If this comes to pass you would be obliged to sell the property with the current tenants in place with a rent cap dramatically below market rates.
That would make your property significantly less desirable to buy. Owner occupiers won’t want it as they cannot evict the tenants. Investors will buy another property without tenants & a rent cap.
It’s just rumour at the moment thankfully.

First thing you should do is raise the rent to the max allowable with the correct notice period.

KellyXX

April 73 wrote: »

There have been rumours of further interference in the market by disallowing wanting to sell as a reason to allow eviction of tenants. If this comes to pass you would be obliged to sell the property with the current tenants in place with a rent cap dramatically below market rates.
That would make your property significantly less desirable to buy. Owner occupiers won’t want it as they cannot evict the tenants. Investors will buy another property without tenants & a rent cap.
It’s just rumour at the moment thankfully.

First thing you should do is raise the rent to the max allowable with the correct notice period.

That so nearly became reality. I think it was voted down by just one vote. The next time it comes up it will become reality.

I lost my place because the landlord could not take an extra €100 a month from me by law even though I would have been happy to pay it to stay there, as that was still very far below market value according to daft. He said he couldn't take the chance of striking a deal with me that might come back to bite him.


What a nightmare it was looking for a new apartment.

I'm renting an Airbnb now for a few months and I think it's a great way to go.

Oh and I believe the first time you increase the rent it can be max 2%, then the second and subsequent time 4%.
So your max increase after 6 years is about €100 and you'll see about €50 of that. That's after being very nice to your tenant for 6 years.

amtc

My friend has been renting below market rate for some years. They went to the landlords and asked to pay more for security of tenure. Dublin city centre. Increase of 40%.

amcalester

amtc wrote: »

My friend has been renting below market rate for some years. They went to the landlords and asked to pay more for security of tenure. Dublin city centre. Increase of 40%.

I can't see how paying 40% gives your friend any extra security of tenure unless it's a fixed term lease bridging the end of a Part 4 lease and the start of a new Part 4 lease.

amtc

Yes, that's the case. Owners live abroad and friend had rented while single but now has family. They felt guilty about paying under market rates. Friend is also landlord so can see both sides (doesn't live in property due to location)

amtc

Yes, that's the case. Owners live abroad and friend had rented while single but now has family. They felt guilty about paying under market rates. Friend is also landlord so can see both sides (doesn't live in property due to location)

callaway92

amtc wrote: »

My friend has been renting below market rate for some years. They went to the landlords and asked to pay more for security of tenure. Dublin city centre. Increase of 40%.

amtc wrote: »

Yes, that's the case. Owners live abroad and friend had rented while single but now has family. They felt guilty about paying under market rates. Friend is also landlord so can see both sides (doesn't live in property due to location)

This is beyond pathetic

'Hi, I want you to charge me 40% more than what I'm paying currently'.

amtc

Kind of what I said but owners are long time friends of one of the couple and they also wanted to secure place due to location for work and child's creche.