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Rent Increase Incorporating 2 Years of Increases?

  • 21-03-2021 9:56pm
    #1
    Boardzee
    Registered Users, Registered Users 2 Posts: 42 ✭


    I currently share a place in a RPZ with my partner, we moved in during July 2019. The rent had just been increased by 4% when we moved in which was fine. The letting is managed by a well-known property company. The place isn't covered by a RPZ exemption. We just got a letter to say the rent would be increasing by 7.3% as of June, or 22 months worth of increases [1 + 4% * (22/12)].
    I'm a bit puzzled:
    1) I'm aware landlords were unable to increase rents last year due to the pandemic, but can they now make up for those increases in current rent reviews?
    2) The 22 months also strikes me as odd. According to the RTB website, only 12 months can be used (or 24 months for the first rent review on or after the date that the area became an RPZ, which is not the case here)

    Is this allowed?

    We signed a 1-year lease when we first moved in but didn't sign anything last year when the lease was up for renewal.


Comments

  • #2
    PetitPois89
    Registered Users, Registered Users 2 Posts: 99 ✭✭PetitPois89


    Yes they can backdate rent reviews. Under RPZ rent can be increased by 4% and a rent review can be carried out annually. So as your rent wasn’t reviewed in 2020 the review is calculated from the date the last rent was set i.e. July 2019.

    Also it doesn’t matter that no renewal was signed as after 6 months you gained Part 4 rights so the lease will roll on and you’re protected under the Part 4


  • #3
    Baby01032012
    Registered Users, Registered Users 2 Posts: 1,622 ✭✭✭Baby01032012


    As previous poster has said rent can be increased annually by 4%. There is a rpz calculator on rtb website.

    If it hasn’t been increased for 1.5 years it’s 6% etc it’s 4% by period since last increase divided by 12 months.


  • #4
    MacDanger
    Registered Users, Registered Users 2 Posts: 3,148 ✭✭✭MacDanger


    Yes, they can increase by more than 4% when it's been longer than a year. They should use this form:

    https://www.rtb.ie/images/uploads/Comms%20and%20Research/New_Notice_of_Rent_Review.docx

    Is the new rent in line with other properties in the area? Did they give you an example of 3 similar properties in the area which are going for a similar amount?


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