Rent increase in rent pressure zone.

normanoffside

Hi all. I rent in Co Dublin through a property management company.
I have been renting this property for the past 5 years on a rolling 12 month lease. Each year I get an email out about 2-3 months before the lease is up asking my intentions and then they post me out another lease to be signed.

Anyway last year the rent was increased by 4% as per legislation and obviously I accepted. This year I just got notification of another 4% increase to take effect if I decide to stay next year. Am I right in thinking they can only legally increase the rent by 4% every 2 years?

TIA.

dennyk

No, in RPZs rent reviews can be conducted once a year instead of once every two years, but the rent can only be increased by 4% per year of course.

pancuronium

Considering the way rental markets have gone in Dublin I'd imagine you could be much worse off than a miserable €40 per €1000 once a year increase. If they asked u to move out how much extra would you have to pay? I wouldn't be complaining a huge amount..... that's just me......

normanoffside

dennyk wrote: »

No, in RPZs rent reviews can be conducted once a year instead of once every two years, but the rent can only be increased by 4% per year of course.

Really? Am I reading this wrong?

http://www.citizensinformation.ie/en/housing/renting_a_home/rent_increases.html

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 from either the start of the tenancy or from the date when you were notified in writing of your last review. The maximum rent increase is 2% per year since the previous rent was set. So, if the rent is reviewed when the minimum 24-month period has elapsed, the maximum rent increase is 4%. If more time has passed since the previous rent was set, the maximum rent increase is higher.

normanoffside

pancuronium wrote: »

Considering the way rental markets have gone in Dublin I'd imagine you could be much worse off than a miserable €40 per €1000 once a year increase. If they asked u to move out how much extra would you have to pay? I wouldn't be complaining a huge amount..... that's just me......

I will of course accept it if it's above board.
As a landlord myself it's also in my interest to know the rules...

GingerLily

They can raise it 2% since its 12 months since the last increase, not 4%

normanoffside

GingerLily wrote: »

They can raise it 2% since its 12 months since the last increase, not 4%

Yeah, I would accept that but my understanding is that rent can only be reviewed every 24 months and then increased at a max of 2% per Year

amcalester

normanoffside wrote: »

Yeah, I would accept that but my understanding is that rent can only be reviewed every 24 months and then increased at a max of 2% per Year

I think that’s for the initial review/increase, subsequent reviews are every 12 months and capped at 4%.

normanoffside

amcalester wrote: »

I think that’s for the initial review/increase, subsequent reviews are every 12 months and capped at 4%.

Thanks for the clarification

The_Conductor

normanoffside wrote: »

Really? Am I reading this wrong?

http://www.citizensinformation.ie/en/housing/renting_a_home/rent_increases.html

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 from either the start of the tenancy or from the date when you were notified in writing of your last review. The maximum rent increase is 2% per year since the previous rent was set. So, if the rent is reviewed when the minimum 24-month period has elapsed, the maximum rent increase is 4%. If more time has passed since the previous rent was set, the maximum rent increase is higher.

This is only for the first review for an existing tenancy that commenced prior to the 24th December 2016.

Subsequent reviews are allowable every 12 months, with a maximum 4% per annum increase- and should be accompanied by examples of other properties in the area to support the market rent being sought.

The 2% per annum increase- is only for the first review- its 4% per annum thereafter. Also- the first review- if there was no increase since the start of the tenancy some years previous- could potentially be for a multiple of 2% increases together (aka- a 12% increase- could be entirely legitimate).

The RTB have a calculator on their website where you can plug all the information in and it'll tell you what the allowable increase is- and when.

https://onestopshop.rtb.ie/calculator/rpz

normanoffside

The_Conductor wrote: »

This is only for the first review for an existing tenancy that commenced prior to the 24th December 2016.

Subsequent reviews are allowable every 12 months, with a maximum 4% per annum increase- and should be accompanied by examples of other properties in the area to support the market rent being sought.

The 2% per annum increase- is only for the first review- its 4% per annum thereafter. Also- the first review- if there was no increase since the start of the tenancy some years previous- could potentially be for a multiple of 2% increases together (aka- a 12% increase- could be entirely legitimate).

The RTB have a calculator on their website where you can plug all the information in and it'll tell you what the allowable increase is- and when.

https://onestopshop.rtb.ie/calculator/rpz

Many thanks, I hadn't realised but is very clear now.
As a long term renter i am in the lucky position to be renting below market value so I will of course accept this increase.
Also very useful info for myself as a landlord (my tenants in a similar position to myself renting well below market value).

I just want to do everything above board.

Thanks again.