Forcing rent increase due to refurbishment

Potential-Monke

Hi all. Asking for a work colleague, as I've previously had a mortgage and living at home now, so haven't had to rent for over 10 years.

Two of my work colleagues are renting an apartment in a city centre location. Lease for around €600p/m, which is a good bit below the standard, but the apartment block is badly in need of a refurbishment. Everything needs to be replaced in every apartment (there's over 100 I believe). Bad antii-social behaviour and drug use in stairways, front door not always secure, etc. They don't mind, it's cheap for a city centre place.

But, other residents have been giving out, went to media and PTRB, so now the Landlord has to do them up to meet current minimum standards. The lads were told that they are being moved out tomorrow just around the corner for a week, and when they get back there will be a new lease with €200 extra p/m. They weren't sure about this, and the LL said that they can wait until the lease is up (February), and they can then leave and won't be offered the refurbished apartment.

This doesn't sound right to me, and sounds like the LL is trying to pull a fast one. I'd imagine the second option is the only option they have if they don't want to accept the increase, but they're being pushed into the first option. They only found out 2 days ago that they will be moving for a week, and one of them is working the day they're expected to leave.

What's the story here? It looks like the refurbishment is going ahead regardless, but the LL can't increase the rent regardless until the end of their lease, surely? Any assistance would be great, as I've no idea of rental laws at the moment!

catrionanic

First of all, is the apartment in a rent pressure zone?

Secondly, what refurbishments are being done?

Potential-Monke

catrionanic wrote: »

First of all, is the apartment in a rent pressure zone?

Secondly, what refurbishments are being done?

The entire city is a bit of a mess, there are places available but the prices are scandalously high (Limerick City). Area is not the nicest, as you have a nearby apartment block full of undesirables, the type that have full blown conversations at the top of their voices from the 5th floor to the ground outside.

Refurbishment wise, new flooring, painting, new beds and furniture. That's all I'm aware of, but they don't know much more themselves.

catrionanic

Potential-Monke wrote: »

The entire city is a bit of a mess, there are places available but the prices are scandalously high (Limerick City). Area is not the nicest, as you have a nearby apartment block full of undesirables, the type that have full blown conversations at the top of their voices from the 5th floor to the ground outside.

Refurbishment wise, new flooring, painting, new beds and furniture. That's all I'm aware of, but they don't know much more themselves.

Limerick city is not in a rent pressure zone, so there are no strict rental caps.

The landlord can only raise the rental once every 24 months, unless there have been substantial refurbishments.

Any notice of a rent increase must be in writing too.

More info here: https://onestopshop.rtb.ie/during-a-tenancy/rent-reviews-outside-an-rpz/

3DataModem

“Bringing up to standard” is absolutely not allowable refurbishment excuse - even if significant.

It’s their in black and white on RTB site.

Potential-Monke

Perfect! Thank ye. The 90 days notice was definitely not served, so they're covered that way. What would constitute a refurbishment excuse? Like, the apartment is not great, I personally wouldn't rent there as it just feels dirty.

The_Conductor

Potential-Monke wrote: »

Perfect! Thank ye. The 90 days notice was definitely not served, so they're covered that way. What would constitute a refurbishment excuse? Like, the apartment is not great, I personally wouldn't rent there as it just feels dirty.

Significant works, possibly structural in nature and/or requiring planning permission or that have the net effect of changing the number of bedrooms in the property.

New kitchen/bathroom/floors etc- do not count.

tvjunki

Potential-Monke wrote: »

Perfect! Thank ye. The 90 days notice was definitely not served, so they're covered that way. What would constitute a refurbishment excuse? Like, the apartment is not great, I personally wouldn't rent there as it just feels dirty.

Improving insulation. New boiler or heating zoning. This work does not need planning permission but water and electric may be turned off for a period of time. This type of work they don't need planning permission. It is really the cost that is paid out etc.

Potential-Monke

Awesome! Thanks folks!

dennyk

For the Part 4 refurbishment termination, the key factor is that the works in question would require vacant possession, i.e. they couldn't reasonably be conducted while a tenant was still living in the property. If you really are talking about what's basically a full rebuild from the studs up in those units, that would most likely stand as a valid reason for termination (assuming correct notice was given, of course).

The RPZ exception is a bit different in that it requires a "substantial change in the nature of the accommodation" to allow the rent to be put up more than the allowed RPZ limit following the works. It is possible for renovation works to be substantial enough to be a valid Part 4 termination reason but not create a substantial change in the nature of the accommodation that would allow the RPZ exception. However in this case, since Limerick isn't an RPZ, it really makes no difference; a landlord can put the rent up to whatever he likes following the renovations regardless (provided it's still within market rent).

That said, if the tenants are on a fixed term lease, the landlord cannot put up the rent during the lease term regardless of whether he carries out repairs or refurbishments to the unit. He also cannot terminate the lease early even for a valid Part 4 reason; he is obligated to continue to provide them accommodations at the agreed rent for the duration of the lease term. If the state of the apartment is truly dire enough to render it uninhabitable and requires vacant possession to remedy, it may be acceptable for the landlord to require the tenant to vacate and provide reasonable alternative accommodations for the duration of the repairs, but the lease would still remain in force and the rent could not be increased when the tenant is returned to the original unit. The rent could be increased after the end of the fixed term lease, however, provided it has been at least 24 months since the last rent review, but proper notice of the review and increase would still need to be given.

As for the "wait until the lease is up (February), and they can then leave and won't be offered the refurbished apartment" option, that's a nope. They will be under a Part 4 tenancy at that point (if they aren't already) and regardless of the ending of the fixed term lease, their tenancy can only be terminated for one of the allowed reasons under Part 4. If the landlord ends the tenancy at that time for refurbishment requiring vacant possession and the unit is made available for letting again within six months after the termination, the landlord must offer it to the previous tenant first (although he can increase the rent, provided the new rent is within market rates). Now, in this instance, since they would no longer be under a fixed term lease, the landlord would not have to provide them with alternative accommodations during the time the works are being carried out; the tenant would be be responsible for sorting that out on their own and paying the costs, whatever they are. However, they must be given first right of refusal for the refurbished unit if it is made available again within six months no matter what.

Ray Palmer

The_Conductor wrote: »

Significant works, possibly structural in nature and/or requiring planning permission or that have the net effect of changing the number of bedrooms in the property.

New kitchen/bathroom/floors etc- do not count.

Just to be clear new kitchen or bathroom would count if there was a different layout involved. Refurbishing existing layout doesn't count. Adding a bathroom or extending a kitchen can be done relatively easily in many properties and can substantially increase rent and value.