Rent increase in RPZ

davehogan100

Hi All,

I'm 6 months into a 12-month lease of a new build in a rent pressure zone.

I'm confused if at the end of the lease the rent can be raised by more than 4% due to the fact the properties is a new build. Could anyone clarify if the maximum increase is 4% every 12 months or if its a market rate free for all?

Thanks in advance,

ShaneC93

davehogan100 wrote: »

Hi All,

I'm 6 months into a 12-month lease of a new build in a rent pressure zone.

I'm confused if at the end of the lease the rent can be raised by more than 4% due to the fact the properties is a new build. Could anyone clarify if the maximum increase is 4% every 12 months or if its a market rate free for all?

Thanks in advance,

Yes, it's 4% every 12 months to no greater than market rate based on similar properities in the same area.

I recommend reading this for more info: https://onestopshop.rtb.ie/rent-pressure-zones/

Fian

ShaneC93 wrote: »

Yes, it's 4% every 12 months to no greater than market rate based on similar properities in the same area.

I recommend reading this for more info: https://onestopshop.rtb.ie/rent-pressure-zones/

No, not if it was not rented in the two years prior to the establishment of the RPZ. Which it can't have been if it is a new build.

It is not subject to a 4% increase cap, but it remains subject to a cap based on market rent of similar properties. So rent can be increased every 12 months to market rent, with 90 days notice.

See section 19(5) inserted by the 2016 amendments:

http://www.irishstatutebook.ie/eli/2016/act/17/section/34/enacted/en/html#sec34

(5) Subsection (4) does not apply—

(a) where a dwelling has not at any time been the subject of a tenancy during the period of 2 years prior to the date the area is prescribed under section 24A as a rent pressure zone or deemed to be so prescribed;

(b) if, in the period since the rent was last set under a tenancy for the dwelling—

(i) a substantial change in the nature of the accommodation provided under the tenancy occurs, and

(ii) the rent under the tenancy, were it to be set immediately after that change, would, by virtue of that change, be different to what was the market rent for the tenancy at the time the rent was last set under a tenancy for the dwelling.

Edit: some landlords have been voluntarily abiding by teh 4% increase cap though they are not legally obliged to. This may be the case with your landlord, especially if it is a REIT.

davehogan100

Thanks for that guys, I suspected it was a case of market rent. The landlord is a REIT so hopefully, it's not increased by more than 4%.