Rent increase is it right?

2Mad2BeMad

Hi everyone

We are renting a place coming up on 2years this month

Lucky for us there has been no rent increase on the first year
We do consider the place to be quite expensive for what it is but happy to live here as we are close to work.

The rent has jumped from 1875 to 2030 a month

we have been given 3 months notice

does all this seem correct?
it seems like an 8percent increase
talking to a neighbour they said the goverment announced an 8percent increase last night on the news?? i didnt see this to be honest

Eireog1

Yes that is 4% a year and with correct notice period.

Smee_Again

Plug the figures in here and see what you get. It's about right but the exact figure will depend on the dates the previous rent was set and the new rent is to take effect.

https://www.rtb.ie/calculator/rpz

SteM

Yeah, it was in various news sources last week.

2Mad2BeMad

2Mad2BeMad wrote: »

Hi everyone

We are renting a place coming up on 2years this month

Lucky for us there has been no rent increase on the first year
We do consider the place to be quite expensive for what it is but happy to live here as we are close to work.

The rent has jumped from 1875 to 2030 a month

we have been given 3 months notice

does all this seem correct?
it seems like an 8percent increase
talking to a neighbour they said the goverment announced an 8percent increase last night on the news?? i didnt see this to be honest

Rent increase is about right, it is 8% because it is 2 years since last rent review.

HeidiHeidi

You can use the rent calculator on rtb.ie.

Looks like that's correct. Not sure about the notice period required though.

MacDanger

2Mad2BeMad wrote: »

Hi everyone

We are renting a place coming up on 2years this month

Lucky for us there has been no rent increase on the first year
We do consider the place to be quite expensive for what it is but happy to live here as we are close to work.

The rent has jumped from 1875 to 2030 a month

we have been given 3 months notice

does all this seem correct?
it seems like an 8percent increase
talking to a neighbour they said the goverment announced an 8percent increase last night on the news?? i didnt see this to be honest

They also need to show that the new rent is not above the market rate and provide proof of same:

The existing requirement remains that the new rent is not greater than market rent having regard the letting values of dwellings of a similar size, type and character and situated in a comparable area. Additionally the rent amount for three comparable dwellings advertised in the previous month remains

I would have thought with the recent trends in rents that this requirement may be difficult to fulfill

C14N

I also was kind of shocked when I got my first rent increase on my previous apartment. I had thought that I needed to be there 2 years to get the first increase and that the increase could only be 4% at a time, but this is actually not how it works at all (although I've since told many people about it and they had the same incorrect impression).

It's not actually strictly a 4% per year max increase, it's a max increase of

4/12 * (months since last increase)

In my case, I went 18 months without any change so it bumped up 6%. In your case, I presume 24 months and an 8% change, which is also legal. Not nice to get the news, but unfortunately your only recourse is to find a new place.

youandme13

Unfortunately yes. I read an article on The Journal a few days ago that it can be increased 8% (4% last yr and 4% this year) once given 90 days notice.

MacDanger

MacDanger wrote: »

They also need to show that the new rent is not above the market rate and provide proof of same:



I would have thought with the recent trends in rents that this requirement may be difficult to fulfill

They only need 3 examples if memory serves me right, shouldn’t be difficult in Dublin.

Browney7

2Mad2BeMad wrote: »

Hi everyone

We are renting a place coming up on 2years this month

Lucky for us there has been no rent increase on the first year
We do consider the place to be quite expensive for what it is but happy to live here as we are close to work.

The rent has jumped from 1875 to 2030 a month

we have been given 3 months notice

does all this seem correct?
it seems like an 8percent increase
talking to a neighbour they said the goverment announced an 8percent increase last night on the news?? i didnt see this to be honest

8% sounds right if they have comparable properties in the review letter. If you can find comparable properties for less than the rent review you can challenge if you wish.

Lots of talk of people getting first month free on rentals in the market at present so if you're willing to move and negotiate then you could reduce your outgoings on rent

Reps4jesus

if the rent hadnt been increased in three years could then increase by 12%, 16% if 4 years and so on or is there a cap in how long they can go backwards since the last increase?

Fian

Reps4jesus wrote: »

if the rent hadnt been increased in three years could then increase by 12%, 16% if 4 years and so on or is there a cap in how long they can go backwards since the last increase?

This is deliberate - otherwise landlords would be incentivised to increase rent every 12 months by 4% or face losing out on the opportunity to raise it later.

Instead it is open to them to leave it a few years and then still increase to close to (but less than because of compounding effects) than they could if they raised rent every 12 months.

C14N

Fian wrote: »

This is deliberate - otherwise landlords would be incentivised to increase rent every 12 months by 4% or face losing out on the opportunity to raise it later.

Instead it is open to them to leave it a few years and then still increase to close to (but less than because of compounding effects) than they could if they raised rent every 12 months.

They are still incentivised to do that (since by holding off increases they miss out on the extra rent they would have collected in the meantime, in addition to the compounding value), it just softens the incentives somewhat.

Del2005

Fian wrote: »

This is deliberate - otherwise landlords would be incentivised to increase rent every 12 months by 4% or face losing out on the opportunity to raise it later.

Instead it is open to them to leave it a few years and then still increase to close to (but less than because of compounding effects) than they could if they raised rent every 12 months.

With talk of rent freezes and other anti landlord laws being planned a landlord would be a fool not to increase by the max amount at every opportunity. There was no talk of a crisis a few years ago when it was a tenants market!