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How far back can a rent increase be backdated?

  • 11-02-2019 11:41am
    #1
    pinkypinky
    Moderators, Society & Culture Moderators Posts: 6,614 Mod ✭✭✭✭


    Situation: couple renting apartment (had original lease, now Part IV) for 9 years. Never had rent increase.
    Landlord requested meeting and is looking for a 4% increase on each year they've been there.

    My understanding is that landlord can apply a 4% increase now on current rent only.

    Have I misunderstood?

    People involved are vulnerable but have no arrears and have been generally excellent tenants.

    ETA: they are in a rent pressure zone.

    Genealogy Forum Mod



Comments

  • #2
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Landlord isn't limited to 4%, there's a formula to calculate the maximum allowable increase. Online calculator here:

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

    Increase obviously only applies to future rent payments.


  • #3
    fritzelly
    Registered Users Posts: 17,226 ✭✭✭✭fritzelly


    Chancing his arm to get rid of them by the sounds of it.
    Cannot do a retrospective rent increase


  • #4
    pinkypinky
    Moderators, Society & Culture Moderators Posts: 6,614 Mod ✭✭✭✭pinkypinky


    I just spoke to Threshold and they directed me to their calculator and assuming I have the dates right, a rent of €1200 can go to €1418.

    Seems I had misunderstood the finer points of the way it works.

    Genealogy Forum Mod



  • #5
    accensi0n
    Registered Users Posts: 2,738 ✭✭✭accensi0n


    fritzelly wrote: »
    Cannot do a retrospective rent increase

    Can you explain what you mean by this?

    My understanding is that the landlord can increase as per the rules which would be something like an increase every 24 months since the last setting of the rent.

    "retrospective rent increase" sounds like saying something along the lines of "The rent last year which we agreed was 1000 was actually 1100 now so you owe me 1200" which is obviously crazy.


  • #6
    fritzelly
    Registered Users Posts: 17,226 ✭✭✭✭fritzelly


    I read it as he is calculating what the rent would be if it was increased 4% every year and saying that is the rent now.


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  • #7
    pinkypinky
    Moderators, Society & Culture Moderators Posts: 6,614 Mod ✭✭✭✭pinkypinky


    Yes, that's what the landlord wants to do.

    Genealogy Forum Mod



  • #8
    Varik
    Registered Users Posts: 12,480 ✭✭✭✭Varik


    Old system was every 2 years with no set %, and now it's yearly up to 4%.

    As this is the first review he's limited to having a foot in each system, so up to 4% every 2 years up to now, and your next review could be in a years time up to 4%.


  • #9
    pinkypinky
    Moderators, Society & Culture Moderators Posts: 6,614 Mod ✭✭✭✭pinkypinky


    Thanks everyone.

    Landlord has not yet given a written notice or anything, so we can go back armed with the right details.

    Genealogy Forum Mod



  • #10
    Fian
    Registered Users Posts: 2,187 ✭✭✭Fian


    Varik wrote: »
    Old system was every 2 years with no set %, and now it's yearly up to 4%.

    As this is the first review he's limited to having a foot in each system, so up to 4% every 2 years up to now, and your next review could be in a years time up to 4%.

    This is only the case in an existing tenancy, once a new part IV has commenced the rent can be increased by 4% per annum back to the last time it was set. So back the 9 years. Still quite a bit lower than would be the case had it been increased each year - because compounding.


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