90 days notice of rent increase

Maya22

I have heard conflicting opinions on this so wondered if anyone could point me in the right direction of where I can get it in writing. I am a landlord in a RPZ. Tenants signed a one year lease last year. I want to increase by the allowable 4%....do I have to wait until the end of their one year lease to give 90 days notice of the increase or can I issue the notice 90 days before the year is up so that the new rent begins on the first day of their second year.

When I put the date as 90 days after the first year is up in on the RTB calculator, the amount it says I can charge comes up as more than 4% so that seems incorrect to me?

tvjunki

On the day after the 12 months you give notice of rent increase no not before so say lease started 1 Jan 2018 and end 1jan 2019. Notice given 2nd Jan. It is 90 days after that the rent increases. So the following year you give notice again on the 1jan 2020. So into the second year the first 3months at old rent and the remainder and the 3months of the next year.

You must use a template on rtb website with the calculator calculating on it and 3 comparable properties.

Put 12 in the months since last rent was set(day the rent started and start day of the 12 month lease. The add 15 when the new rent will be given. Calculation is worked from right to left.

https://onestopshop.rtb.ie/during-a-tenancy/rent-review-in-a-rent-pressure-zone-rpz/how-is-the-rent-calculated/

Maya22

When I use the calculator and put in the date new rent commences as 15 months after the rent was set, an amount more than 4% comes up. For example, the rent is now 1500 per month. A 4% increase would be €1560 but the calculator is saying I should charge €1575 per month based on the calculation of 1500 x (1 + 0.04 x 15/12). Anyone know which is correct? I don’t want to get it wrong. Thanks

Fian

1560 is correct. It is a 5% increase - 4% per annum over 15 months. if you waited 2 years you would get an 8% increase.

Assuming 90 days expires before rent due date - If you started a lease on 10th of Feb with monthly rent (for example), giving notice of rent review on 10 Feb following year you would need to wait until 10th June for new rent to take effect - because Feb is 28 days, march 31 and April 30 = 89 days passed by 10th of May which is not enough notice.

So you would input 16 months into calculator, do rent review on 10 Feb and state new rent comes into effect on 10 June.

Kind of convenient anyway because it gives you a bit of leeway giving notice every year thereafter. Otherwise you can have a small window to conduct rent review and give notice on time to have rent increase take effect 3 months later every year. you do rent review 12 months after previous review, give notice soon thereafter and it comes into effect 4 months later.

Maya22

Is 1560 not 4% of 1500 not 5%?
Are you saying the 1575 is correct?

Fian wrote: »

1560 is correct. It is a 5% increase - 4% per annum over 15 months. if you waited 2 years you would get an 8% increase.

Assuming 90 days expires before rent due date - If you started a lease on 10th of Feb with monthly rent (for example), giving notice of rent review on 10 Feb following year you would need to wait until 10th June for new rent to take effect - because Feb is 28 days, march 31 and April 30 = 89 days passed by 10th of May which is not enough notice.

So you would input 16 months into calculator, do rent review on 10 Feb and state new rent comes into effect on 10 June.

Kind of convenient anyway because it gives you a bit of leeway giving notice every year thereafter. Otherwise you can have a small window to conduct rent review and give notice on time to have rent increase take effect 3 months later every year. you do rent review 12 months after previous review, give notice soon thereafter and it comes into effect 4 months later.

Fian

Maya22 wrote: »

Is 1560 not 4% of 1500 not 5%?
Are you saying the 1575 is correct?

Yes, sorry, I meant €1575 is correct .

Askthe EA

tvjunki wrote: »

On the day after the 12 months you give notice of rent increase no not before so say lease started 1 Jan 2018 and end 1jan 2019.

https://onestopshop.rtb.ie/during-a-tenancy/rent-review-in-a-rent-pressure-zone-rpz/how-is-the-rent-calculated/

Just to clarify this, the tenancy mentioned above ends at midnight on the 31st December, so the review letter can go out on the 1st Jan 2019 with the 90 days notice period commencing on the 2nd.