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05-11-2018, 14:06   #1
Anthonylfc
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Increasing Rent

i've a house that i let out 10 years ago , current tenants are there bout 7 years and no issues whatsoever ( thank god ) but it's a 4 bed house and i'm getting alot less that market value for rent , i want to increase this but unsure how to word it without it turning into a conflict

i get €1050 a month at the min and has been that since day 1 , so 7 years now

i'm looking for €1250 ( not a huge increase considering both people work full time and no kids )

currently 3 beds in same estate listed for €1450-1600 so i think i'm not being to unreasonable , i know i could get alot more etc , but these are nice tenants and i just want to get a little more to cover costs , cause at the min after i pay tax etc and any work thats needed , there is nothing in the account should a big problem arise
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05-11-2018, 14:29   #2
DubCount
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Is the property in a Rent Pressure Zone? If so, the increase will be restricted to a maximum of (7*12/24)*4%*1050 = 147.

If its not in a RPZ, then my advise is to increase to full market value immediately. Even though you have nice tenants now, if an RPZ is brought into your area, then you will be stuck on the lower rate even if your current tenants move out, and even if the property is sold. Our current government does not reward the nice guy.

Check out the RTB website for an exact template of the letter advising a rent increase. Follow all directions including the calculation of the rent increase, providing examples of other comparable properties etc.

Good luck !!
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05-11-2018, 14:41   #3
Anthonylfc
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its in the zone
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05-11-2018, 14:51   #4
Plumbthedepths
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Quote:
Originally Posted by DubCount
Is the property in a Rent Pressure Zone? If so, the increase will be restricted to a maximum of (7*12/24)*4%*1050 = 147.

4 per cent of 1050 is not 147, it's 42.
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05-11-2018, 14:58   #5
cruizer101
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Its 4% per 2 years though so the total they can increase is 147
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05-11-2018, 15:00   #6
amcalester
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Quote:
Originally Posted by Plumbthedepths View Post
4 per cent of 1050 is not 147, it's 42.
7 Years since the last increase so the OP is allowed increase above 4% to "catch up", any subsequent increases are limited to 4% per year.

@ OP increase it to the max you are allowed to. Your tenants won't leave because you're still cheaper than the neighbouring houses.
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05-11-2018, 15:03   #7
Anthonylfc
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no idea what im allowed to charge tbh

they moved in 7 years ago ( before all this stuff with rent caps etc )

any idea what i can ask for ?
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05-11-2018, 15:08   #8
amcalester
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Originally Posted by Anthonylfc View Post
no idea what im allowed to charge tbh

they moved in 7 years ago ( before all this stuff with rent caps etc )

any idea what i can ask for ?
About e1200 depending on the dates, there's a calculator here that'll do it for you.
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05-11-2018, 19:23   #9
tvjunki
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You need to use the letter template on rtb website. You give the tenants 90days notice of the rent increase.
Use the calculator on rtb site. Type in the date or last rent increase and what the rent is. After this notice you can increase the rent yearly. Make sure all in the right format.
If the tenant moved in 1st of jan 2018 after 12 months you can send a new notice on the 1jan 2019 that the rent is increasing in 90 days.

You also need to state 3 comparison properties to your house on the notice. Daft shows let agreed on it advanced page. Print off a copy and keep on file. If you don't you will end up worse with a fine from rtb.
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05-11-2018, 19:33   #10
tvjunki
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If they moved in 7years then they went through one 4 year cycle. Now into 3 years of another part 4 cycle. After this year they are into 6 years right to stay.

Do not give a lease in writing. Go from one rolling month to another. If you do give a lease and you need to sell you will have to sell with a sitting tenant. House is now devalued as only landlords with cash would be able to buy. Banks will not give mortgages without vacant possession.

If you give a lease put in on the second page a break clause that the landlord can give notice under the residential tenancies act. Very important to put in.
Once you have prepared the notice and completed the calculation go to citizens information to check. They are brilliant and are impartial.

Just bare in mind the government might bring down the line that you cannot evict your tenant on the sale of a house.
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06-11-2018, 13:29   #11
pc7
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Going by the calculator you can put it up as per below approx. I would do it to cover yourself, they have templates also for increases (and you need to give 90 days notice)

Calculation:

R x (1 + 0.04 x t/m)



€1050 x ( 1 + 0.04 * 85/24) = €1198.75
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06-11-2018, 19:55   #12
tvjunki
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Originally Posted by pc7 View Post
Going by the calculator you can put it up as per below approx. I would do it to cover yourself, they have templates also for increases (and you need to give 90 days notice)

Calculation:

R x (1 + 0.04 x t/m)

€1050 x ( 1 + 0.04 * 85/24) = €1198.75
You forgot the 3months of the 90day notice.

You work for formula from right to left.
so
€1050 x(1+0.04X88/24)=
€1050x(1+0.04x3.6666666666
€1050x(1+0.14666666666666
€1050x(1.14666666666666)
€1204

Is is 88 months from the last 7years plus the 3months notice.

OP you are not far off what you wanted. Just check the number of months since the last rent was set and if it was more than 88 months(which includes the 3months notice) then amend the formula.

Once again many of us have come up with different amounts and the Government make things complicated.

OP
Use the template on the rtb site.

Use the letter template from the rtb within rpz area at the bottom of this page. https://onestopshop.rtb.ie/during-a-...a-rent-review/

As you have not increased in the number of years you have also been stung only having the rent set for 2years and then you can increase yearly by 4%.
See from RTB site.

https://onestopshop.rtb.ie/during-a-...sure-zone-rpz/
For tenancies in Rent Pressure Zones which began before the 24th of December 2016, the landlord can only review the rent 24 months (2 years) after the tenancy came into existence, or 24 months after the date the rent was last set.

Next thing is once you have increase the rent keep increasing the rent as your property will devalue if the rents do not keep up with market rents.
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06-11-2018, 22:00   #13
ted1
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Originally Posted by Plumbthedepths View Post
4 per cent of 1050 is not 147, it's 42.
That’s great , well done on your maths. But they are not relevant here. The op can increase by more than 4% if he hasn’t increased the rent in 2 years
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06-11-2018, 23:20   #14
tvjunki
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Originally Posted by ted1 View Post
That’s great , well done on your maths. But they are not relevant here. The op can increase by more than 4% if he hasn’t increased the rent in 2 years
I think that only applies if the property was empty..and then others here would challenge that.
Things are so complicated in this country.
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07-11-2018, 01:07   #15
ted1
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Originally Posted by tvjunki View Post
I think that only applies if the property was empty..and then others here would challenge that.
Things are so complicated in this country.
No it applies regardless if empty or not. It’s not very complicated at all.
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