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Rent review notice issuing with lease renewal?

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  • 22-02-2018 10:10am
    #1
    MonaG
    Registered Users Posts: 3 ✭


    Hello,

    We are in private rented accommodation, Rent Pressure Zone, living at the same address 5 years at the end of March. New 1-year fixed term lease issues around Feb/ mid March every year.

    This year, as previously, we notified the agent that we wish to continue living at the address and asked for the new lease documents for signing.

    In return the agent informed us that she would send ‘a rent review letter’ in April once our current lease expires, and also that ‘with new legislation on rent reviews’ she cannot issue the paperwork until our lease expires. Is this true? Surely rent review and lease agreement are two different matters?

    Our rent was last increased on 1.04.2017 so I understand it can be reviewed again 12 months later, 31.03.2018.

    When do these 12 months end – the date of the rent review notice or the date on which rent increase can take effect?

    I am a bit alarmed and confused. We were thinking that there would be no rent increase this year since there was no correspondence on this so far.

    We are aware that we are in the Part 4 Tenancy and have a security of tenure for the next 5 years (6 in total since the Further Part Tenancy commenced in April 2017). But we prefer to sign fixed term lease as it is more secure. And the rent is fixed for its duration.

    I would very much appreciate your comments and advice.

    Many thanks.

    Mona
    Tagged:


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    #2
    Michael D Not Higgins
    Moderators, Society & Culture Moderators Posts: 7,223 Mod ✭✭✭✭Michael D Not Higgins


    The RTB have ruled before on rent reviews not taking place during fixed term agreements. The agent is covering themselves in that case (and are at least up to speed on precedent at RTB which is a good thing).

    Did your rent increase on 1st April or did you get notice on 1st April for the rent to increase 90 days later? If you got notice on 1st April 2017, they can send notice again 1st April 2018 with 90 days notice again. If the rent changed on 1st April they would have to send notice 90 days before on 1st January.

    Signing a fixed term lease will give a bit of added security but if it's only for a year at a time it doesn't insulate you from rent increases.

    Your max increase will be 4%.


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    #3
    MonaG
    Registered Users Posts: 3 ✭MonaG


    Thank you so much for your advice Michael D Not Higgins!

    In reply to your question: our rent increased on 1st April last year.

    New fixed term lease is to begin 1st April 2018. There was no rent review notice to date.

    So when the agent sends rent review notice in April, with rent increase to take place 90 days later (end June 2018) – can she do this? Can she increase the rent 3 months into the new fixed term lease agreement?

    What if we don't get the new lease documents for signing? Is there anything we can do to ensure our rent does not increase for the next 12 months?


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    #4
    Michael D Not Higgins
    Moderators, Society & Culture Moderators Posts: 7,223 Mod ✭✭✭✭Michael D Not Higgins


    I assume they'll include some term that the rent will increase during the fixed term in line with the rent review notice. It's worth waiting til you get something in writing and if you still have questions, you can come back and we can see if it's in line with the law.


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    #5
    MonaG
    Registered Users Posts: 3 ✭MonaG


    Will do - thank you again for all your help!


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    #6
    ross2010
    Registered Users Posts: 67 ✭✭ross2010


    The rent review notice cannot be issued within the fixed term lease. They have to wait until the lease expires. So for example on 1/4/18 they can issue the rent review notice giving you 90 days notice so the rent increase will come into effect on 1/7/18 however your lease renewal will be 1/4/18. The agent is abiding by the current regulations.


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    #7
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,279 Mod ✭✭✭✭The_Conductor


    MonaG wrote: »
    So when the agent sends rent review notice in April, with rent increase to take place 90 days later (end June 2018) – can she do this? Can she increase the rent 3 months into the new fixed term lease agreement?

    Yes. She just can't issue a rent review within the period of the fixed term lease. 3 months (that is 90 days) into the new fixed term lease- is as required.
    MonaG wrote: »
    What if we don't get the new lease documents for signing? Is there anything we can do to ensure our rent does not increase for the next 12 months?

    No. Once your current fixed term lease elapses- and a sufficient term has passed since the last rent review- the landlord can legitimately conduct a new rent review at any time- to give you 90 days notice of an increase of up to 4% (as you're in an RPZ).

    Personally I think you're better off staying under a Part IV tenancy- that is- without a formal fixed term lease- as your rights under the Act are significant- and most formal leases are pretty much a copy and paste jobbie from the Act- with the exception- its for a fixed term- and can have additional rights and obligations for landlords and tenants laid out (which cannot detract from your rights under the Act).

    Its up to you at the end of the day.


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