Info Rent pressure zones Dublin.

good vibes

Hi,

Id like to rent out my house in North County Dublin..do i have to rent it at a fixed rent because its in a rent pressure zone ?

Thanks.

Caranica

Yes, it has to be set no higher than market rate and the timing of reviews and rates of increases are regulated.

Op, is this the first time the property is being rented? If it is, then it is exempt from RPZ rules on setting rent rate for the first tenants, thereafter, you have to abide by the RPZ regs.

dennyk

If the property has not been the subject of a tenancy for the past two years, RPZ restrictions don't apply:

https://www.rtb.ie/during-a-tenancy/rent-review-in-a-rent-pressure-zone-rpz/exemptions-to-the-rent-pressure-zone-rental-cap

You can set the initial rent at the current market rent, which is defined as "a rent that a tenant, not already in occupation, would give willingly and a landlord would willingly take for the rented dwelling". Effectively this usually means you can ask whatever rent you'd like and if you find a tenant willing to pay it, congrats, it's "market rent"...

Once it has been rented out, no matter how long the tenancy lasts, the property will then be subject to the RPZ restrictions for future rent increases during the current tenancy and for setting the rent on a new tenancy if your current tenant leaves, unless you fall under one of the exemptions listed above at some later date.

Also, if you are planning to become a landlord, you must at the very least educate yourself on all of the rules and regulations involved, to avoid making any expensive mistakes. The following resources should help, but if you don't feel that you fully understand all of the requirements, laws, and obligations involved, you should also consult with a solicitor for advice:

https://www.rtb.ie/

https://www.citizensinformation.ie/en/housing/renting_a_home/

You should also be very aware of the risks involved in becoming a landlord. If you get a bad tenant who stops paying rent and overholds, it could take months or years to have them removed from the property, so be prepared for that eventuality and make sure you have a backup plan in place if taking possession of the property again for yourself or another family member is part of your future plans.

tvjunki

Know what you are letting yourself in for. Keep the rent at market rent.

When you have a new tenancy you have to give the tenant a note stating how you came to the figure and show 3 comparison properties and their value which is a hard one as very few landlords are using Daft and the likes. Dot your i' and you t's.

Look at some of the posts here about setting rent. Do not set rent below the market rent. We had a good tenant and we did not increase the rent as others did and now the rent was €900 and the going rate is €1950. Stuck in a rent pressure zone and only allowed to increase by no more than 2%. House going up for sale in the next few weeks. Investor will not buy due to the low rent set. It will be a starter or down sizer buying this.

Look up indefinite tenancies (after 6months the tenant can stay as long as they like and not tied to 4 or 6year rule)and the risks involved before you go down the route of renting out a house.

There is also kite flying by the opposition at the moment about having to sell your home with a sitting tenant. The purchaser will have to be a cash buyer only as banks will not give mortgages without vacant possession.

good vibes

https://www.boards.ie/discussion/comment/119195600#Comment_119195600

Hi thanks, the property was rented out last year... I bought it. April..moved in in May ...can I still rent it out for a higher rent that market tent now?

pc7

You can rent a room for whatever you'd like, but if its the full property then you are subject to to the rules as highlighted above. Unless you have made significant changes (eg to BER etc) as per guidelines.

cowicklow

I have a question I wonder if anyone can help with.

I have a 2 year rent review available soon and my apartment is historically under-rented (loyal tenant so I never increased). I now want to increase. However, in order to increase the rent even by a small amout I have to provide evidence of 3 comparable properties listed for rent in the past 4 weeks.

There have not been 3 2-bed apartments listed in Arklow in the past year, let alone the past month. There is simply no supply. The last one listed was May 2022.

How can you provide comparables where the market has none?

Fian

Go wider than arklow, find similar comparable towns. Best you can do.

Is Arklow in an RPZ? I assume you understand the limits on increases if it is.

dennyk

It doesn't have to be in the same geographic area, just a comparable one, so look for properties of the same size and type (2-bedroom apartments) in similarly sized towns (10k+ population) that are an hour to an hour and a half from Dublin (~70-100km or so). Places like Mullingar, Portlaoise, Carlow, Tullamore, or Athy would all be reasonably comparable possibilities, more or less. You could always fudge a bit if necessary, but if your tenant elects to challenge your notice on the basis of the properties not being comparable, you don't want to be listing stuff inside the M50 or in Cork city centre or 4br semi-Ds instead of 2br apartments or something as your basis for comparison, because your tenant might well win that fight and delay your rent increase.

3DataModem

https://www.boards.ie/discussion/comment/119228196#Comment_119228196

You are limited by the rent that was charged by the previous owners.

There is a calculator here: https://www.rtb.ie/calculator/rpz that will tell you the max rate you can charge.

If the previous owners charged rent then this amount should have been declared at contract stage during your purchase. If this didn't happen and the rent was very low, then ... yikes.