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Rent increase and new lease

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  • 16-09-2021 5:38pm
    #1
    antodeco
    Registered Users, Subscribers Posts: 13,430 ✭✭✭✭


    Hi all,

    A few quick queries.

    Today I received a mail informing me of a rental increase of close to 8%. It's in an RPZ. I'm there 18 months. There was no increase in rents during the pandemic hence the new figure being close to 8%. They have stated they sent correspondence dated 8th July to myself (I did not receive this). I also did not receive a Notice of Rent Review.

    Is this allowed?


    Secondly, there is a parking space charge on top of the rental amount. This was in place when I moved in 18 months ago. Are they allowed to charge for a parking space separate? (Each apartment has numbered spaces)


    Thirdly I am being asked to renew my lease for 12 months as of October. I have applied for a mortgage and plan on moving out when I purchase somewhere. Am I obliged to sign for another 12 months, and if not, is that me affectively giving them my notice? (I could be waiting a few months to source somewhere to live but don't want to be "bound" by the 12 months).


    Thanks

    Post edited by antodeco on


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    #2
    MacDanger
    Registered Users Posts: 2,377 ✭✭✭MacDanger


    Hi

    Here's the calculator for rent increases, you can check what the max allowable is: RPZ Calculator (rtb.ie) They also need to include proof that the new rent is in line with rents in the area for comparable properties and they need to give 90 days notice of an increase. I think that there can be no rent increase in the first 24 months (open to correction on that) so since you've only been in the tenancy 18 months, you shouldn't be getting notice of one for another 3 months at least.

    If charging for the parking space was part of the original agreement, then it's legal imo but if it's a new thing they're attempting to impose, then I'd say not.

    You're under no obligation to sign a lease since you have a part 4 tenancy in place after 6 months (Security of Tenure | Residential Tenancies Board (rtb.ie)). When you move out though, your notice period will be 120 days



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    #3
    antodeco
    Registered Users, Subscribers Posts: 13,430 ✭✭✭✭antodeco


    https://www.boards.ie/discussion/comment/117903242#Comment_117903242

    Thanks for the update on this. They updated and said it is based on legacy RPZ and not the current due to the dates the apparently notified (still waiting for confirming how this was sent).


    In terms of the last point, if I dont renew the lease, it is automatically 120 days or only if it passes the 24 months? And also, I was under the impression it was 24 months for a rent increase but also have heard it can be done after 12 months, so a little confused on that!



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    #4
    MacDanger
    Registered Users Posts: 2,377 ✭✭✭MacDanger


    https://www.boards.ie/discussion/comment/117904505#Comment_117904505

    If your tenancy is greater than 1 year but less than 3 years, your noticed period is 120 days

    My understanding is that for a new tenancy, there can be no rent increase for the first 24 months. Assuming that the rent is increased after 24 months, it can be increased every 12 months after that.



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    #5
    antodeco
    Registered Users, Subscribers Posts: 13,430 ✭✭✭✭antodeco


    https://www.boards.ie/discussion/comment/117904534#Comment_117904534

    The 120 days is for a landlord not a tenant though. So I'm confused. I would normally have to give 42 days but are you saying that I don't renew my tenancy and stay under part 4, it's 120 days?



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    #6
    mrslancaster
    Registered Users Posts: 1,775 ✭✭✭mrslancaster


    Afaik if the tenancy started after Dec2016 in an RPZ the max increase was 4% pa but since July it's linked to inflation. You don't have to sign a new lease and notice is 42 days if you are there between 1 and 2 years.

    A friend's son is sharing for the past few years and used the apartment parking space but the last increase had an extra charge for parking. They queried it but the original ad or agreement didn't say parking was included. Check what your lease/agreement or the estate agents ad said about parking.



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    #7
    antodeco
    Registered Users, Subscribers Posts: 13,430 ✭✭✭✭antodeco


    Thanks for the replies.


    So to clarify, after 12 months they can increase the rent by 4% and then 12 months later another 4% (based on legacy rent increase allowances).


    So are they allowed to do a "7%" increase because they haven't increased in 18 months? This bit is confusing me, as it's more than 4% and I'm only there 18 months.



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    #8
    mrslancaster
    Registered Users Posts: 1,775 ✭✭✭mrslancaster



    https://www.boards.ie/discussion/comment/117909778#Comment_117909778

    It depends - when was the current rent set and when did the area became an RPZ. So the 7% could be allowed, you need to check dates.

    If you are living there 18 months you need to know when the rent you are paying was set. There should only be one rent review in 12 months and with 90days notice. If the notice was issued before 16 July then it would have been at the old 4% rate.

    If it was issued after 16July then the formula is based on the HICP rates. Afaik this is how it works:

    Say the rent was last set on 01/02/2019 at €1000pm. HICP index in Feb19 was 100.8. New rent is to be set on 01/09/2021. HICP index for last month Aug21 is 104.2. The difference between 104.2 and 100.8 is 103.4 so the max amount rent can be increased is 3.4%. New rent €1034 pm after required period of notification.



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