Setting market rate rent for rented property

Rebel001

Hi,

I have being renting a house to excellent tenants for the last 8 years. House is in rent pressure zone. Fully compliant with RTB and declaring rental income etc. Rent was increased by 4% 12 months ago but it is still 33% below market rate for the area.
I was naïve when I originally set the rent but the tenants never gave a moments bother, I think they knew they were on a good deal so they always fixed or replaced items themselves.

My tenants have notified me that they will be moving out as they have purchased their own house.

What are my options here when I advertise the house for rental again. I do not want to be overly greedy but I want to increase the rent to an amount that will at least cover the mortgage. I understand that this will not comply with the 4% rent pressure zone legislation.

Note: If I advertise at the current rent I will be swamped with calls as everyone will think that this is too good to be true....! I would be afraid of what potential tenants I might attract.

1.) If I increase the rent to market rate? Can the new tenants find out previous rental amount from RTB and then pay 4% above the previous rental amount after moving in.

2.) I have read about 'substantial refurbishment' but I think that this involves structural changes to qualify as exempt form the RPZ. This is not an option.

3.) Do I just be up front with the prospective new tenants? previous rent was X, new rent is Y, quoting RPZ etc. are you happy to proceed with the rental contract?

Any advice or opinions welcome?

Iscreamkone

You must play by the rules here and can only increase rent by 4% per annum.
However, there may be some leeway - you can charge for parking spaces, rubbish collection, gas & elec, regular cleaning etc etc on top of the rent.

L1011

Advice on breaking the law cannot be given here