[Landlord Ireland-Cork] - Looking to alter a house to bring rent to the market

lchulo

Hi Folks,

I'm looking to buy a house as an investments in Ireland. It's got 2 units.

a Ground floor 1 bedroom, 1 bathroom apartment

>>> current rent: 850 Euros 

a First floor and 2nd floor 2 bedrooms, 1 bathroom apartment

>>> current rent: 650 Euros

The current landlord has never really cared about the rent income

and has let the apartment 2 bedrooms and 1 bathroom at 650 Euros for 10 years

I'm interested in buying the house but I could only increase the rent by 6.9%

according to https://www.rtb.ie/calculator/rpz?

So that would bring the rent to 695 Euros.

Which is roughly 42% under current market (1200 Euros)

I found out that under the tenancy act 2004 (amendment 2019), you can only increase the rent using the rpz calculator.

But there are some exemptions:

https://www.rtb.ie/images/uploads/Comms%20and%20Research/Schedule_1_Notice_of_New_Rent_RTB_Final_July_2021.pdf

Either one of these 2:

***

Exemption 1 (Permanent Extension)

Works were carried out that consist of a permanent extension to the dwelling subject to tenancy

that increased the floor area (within the meaning of Article 6 of the Building Regulations 1997 (S.I.

No. 497 of 1997)) of the dwelling by an amount equal to not less than 25% of the floor area (within

such meaning) of the dwelling as it stood immediately before the commencement of those works.

Exemption 2 (BER improved by 7 or more)

In the case of a dwelling to which the European Union (Energy Performance of Buildings)

Regulations 2012 (S.I. No. 243 of 2012) apply, works that resulted in the BER (within the meaning of

those Regulations) being improved by not less than 7 building energy ratings. 

***

Exemption 1 is impossible because I cannot increase the floor by 25%.

I mean this is real life, it's not SimCity.

Exemption 2 is really hard because the current BER is C2.

So that would bring the BER all the way to the top: A1

That means using all the eco technology in the world without even being sure I could get to A1

Or other exemptions are:

***

Exemption 3 (Other works as required below)

Works were carried out to the dwelling subject to tenancy that resulted in any 3 or more of the following:

1.The internal layout of the dwelling being permanently altered;

2.The dwelling being adapted to provide for access and use by

a person with a disability, within the meaning of the Disability

Act 2005;

3.A permanent increase in the number of rooms in the dwelling;

4.In the case of a dwelling to which the European Union

(Energy Performance of Buildings) Regulations 2012

(S.I. No. 243 of 2012) apply and that has a BER of D1 or

lower, the BER (within the meaning of those Regulations)

being improved by not less than 3 building energy ratings;

5.In the case of a dwelling to which the European Union

(Energy Performance of Buildings) Regulations 2012

(S.I. No. 243 of 2012) apply and that has a BER of C3

or higher, the BER (within the meaning of those Regulations)

being improved by not less than 2 building energy ratings.

*** 

I believe in my case, exemption 1,3 and 5 would be possible.

Exemption 2 might even be possible in the ground floor apartment.

So this would be the work done:

1- The internal layout of the dwelling being permanently altered;

2- A permanent increase in the number of rooms in the dwelling;

3- The current C2 BER being brought to B3

My question is:

-Would the addition of an ensuite bathroom in one of the bedroom meet work 1 and 2 ?

>>> So would that be considered an increase in the number of room and also a permanent alteration of the layout ?

In my opinion, it would.

I know I should be consulting with local authorities and I will.

Please don't roast me for looking to make a profit out of tenancy income.

I'm a tenant myself, I'm not ecstatic when the rent increases.

I've worked my whole life like a slave dog, I'm just looking to make a good investment

I'd welcome any objective and constructive opinion.

Thanks.

DOCARCH

Quote: 'Would the addition of an ensuite bathroom in one of the bedroom meet work 1 and 2 ?'

As far as I am aware a bathroom or ensuite would not qualify as a (habitable) room? Open to correction on that.

fash

https://www.boards.ie/discussion/comment/117981960#Comment_117981960

Does it need to be a "habitable" room? If that was what was intended, wouldn't they have used that adjective in the legislation?

Personally I think what is proposed would be sufficient. I'm not sure however anyone can give very official advice on this - all the solicitor pieces I read simply repeat the legislation verbatim.

@OP, if there is an old gas boiler in the place, upgrading that alone (coupled with TRVs, boiler interlock) could be enough to bump your BER.

DOCARCH

https://www.boards.ie/discussion/comment/117985792#Comment_117985792

I think it does, but again not 100% sure!

I do remember chatting to somebody (a landlord) about this who was in the same boat as the OP and I did have a quick look. It was not quite as simple as adding a room....like any sort of room! As far as I recall, it did have to be a habitable room. One idea this particular person had was split an existing bedroom in two, to make two bedrooms, but they would have ended up with two (below standard) bedrooms, so that was not an option.

lchulo

Thanks for your contribution.

I found out there is a rule where if the dwelling has not been let for 2 years, it can be brought to open market.

The forum won't let me post links but here is what it says:

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Exemption 1: An exemption under the Residential Tenancies Act 2004 applies to the first rent setting of a tenancy of a dwelling where: 

• no tenancy existed in respect of the dwelling during the two years immediately prior to this current tenancy beginning (including the first setting of the rent in a newly built property or a property which has never previously been let) 

***

Anyway I did not get the house. I was outbid.