Government to Introduce Rent Caps in Dublin & Cork

Discussion in 'Property investment and tenants' rights' started by Sarenco, Dec 13, 2016.

  1. T McGibney

    T McGibney Frequent Poster

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    Last edited: Dec 16, 2016
    Such a claim can only stand if the available evidence supports it. If the landlord has conclusive evidence of the actual amount paid, eg a completed rent book, Revenue would have difficulty contradicting this.
     
    Last edited: Dec 16, 2016
  2. Sarenco

    Sarenco Frequent Poster

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    This is starting to get really silly...

    RTE now reporting:

    "Minister for Housing Simon Coveney has said his department has checked the wording of new legislation on the Government's rent certainty measures to ensure that rents in designated areas do not increase by more than 4% annually.

    He said his team worked late into the night and took advice from the Attorney General last night following a drafting difficulty that arose in the legislation.

    Some TDs were concerned that the wording could see rents for some tenancies rise by 8%.

    Mr Coveney said the new wording would ensure that anyone who is a tenant in a rent pressure zone, will be sure that at the end of their two-year tenancy, they will not face more than a 4% increase, and thereafter there would no be more than a 4% increase.

    Minister Coveney also clarified that regardless of when a rent reviews happen, a property in the designated zone could not have a rent increase of more than 4% in a 12-month period.

    He explained that if there was a change of tenancy after six months, then the rise would be 2%.

    He said they did not want to have an incentive for landlords in a rent pressure zone ending a tenancy early."
     
  3. elcato

    elcato Moderator

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    Point taken but would it not mean then that the RTB could prosecute as he has furnished incorrect information so either way I would think it a bad idea. Again I stress that either co-operating with each other would be unlikely.
     
  4. T McGibney

    T McGibney Frequent Poster

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    How has he furnished incorrect information? Landlords often get stiffed for unpaid rent, which doesn't require notification to the RTB. It would be a bizarre outcome if RTB were to prosecute a landlord for allowing a hard-up tenant a discount on a previously-agreed rent amount.

    You mean Revenue and RTB? Revenue routinely access RTB data.
     
  5. Kine

    Kine Frequent Poster

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    What an absolute disaster. I have good tenants and am happy form THEM to pay below market rate. We've just re-agreed an uplift, but still several hundred off market. I, as a LL, am happy with this as I know they are good tenants and don't need to squeeze every penny. As I have just agreed the rent increase with them, I'm tied into it for the next 2 years. Until now, I was happy with that. But in 24 months the market could have moved on again somewhat (say 20%) and I will only be able to do a 4% increase on the already wwll off market rate. That can't be correct?!
     
    aristotle likes this.
  6. aristotle

    aristotle Frequent Poster

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    Like others I am renting out to a tenant on way below market rate as they are good tenant. If\when they move out I expect to rent out at full market rate but surely this legislation isn't going to cap an increase to 4% of what I was renting out for?!
     
  7. Sarenco

    Sarenco Frequent Poster

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    Well the Minister has now apparently withdrawn the amendment-to-his-amendment. Apparently it's still not quite right!

    What a way to legislate - talk about drafting on the fly.

    It's beyond ridiculous at this stage. Irish Water Mark II.
     
  8. Sarenco

    Sarenco Frequent Poster

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  9. Rory_W

    Rory_W Frequent Poster

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    http://www.revenue.ie/en/tax/it/leaflets/it70.html#section17
    What If Rent Is Not Received?
    A landlord who proves that rents are irrecoverable or were waived without consideration and the waiver was reasonably made in order to avoid hardship, is treated as if there was no entitlement to receive the amount in question and all necessary adjustments are made.

    If some or all of the amount is subsequently received, all relevant years are readjusted as necessary.
     
  10. Gordon Gekko

    Gordon Gekko Frequent Poster

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    What if the rent is increased from €1,500 to €2,000, but a "prompt payment rebate" of €500 is applied?
     
    Rory_W likes this.
  11. odyssey06

    odyssey06 Frequent Poster

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    Or a pay 11 months rent on time get 1 month free special loyalty deal ?
     
  12. facetious

    facetious Frequent Poster

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    But has he forgotten that rents may only be reviewed/increased in periods of 24 months - or does that mean that after 24 months the rent may be increased by 8%?

    Just thinking aloud!
     
  13. Sarenco

    Sarenco Frequent Poster

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    Apparently he did and hence the amendment to his amendment.

    If you look at the link posted above you can see the formula that was ultimately adopted.
     
  14. carbine

    carbine New Member

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    My property is next due a rent review next August under the 2 year rule. Can I send a letter to the tenant now to increase the rent from next August? Has the legislation already been enacted and is it too late to do this?
     
  15. Sarenco

    Sarenco Frequent Poster

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    No, under the current rules you can only review the rent next August and thereafter you would have to give 90 days' notice of any rent increase.
     
  16. odyssey06

    odyssey06 Frequent Poster

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    Also, there doesn't seem to be anything to stop a landlord, say of an apartment, in the next lease separating out the provision of car park space from the property rent and charging separately, for example.
     
  17. triggs

    triggs Registered User

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    Why would a landlord agree to this?.Many landlords have been more than fair to their tenants and could seriously consider selling their properties-this will seriously focus the minds of tenants -their options are limited.This legislation,I accept, has limited their potential market in that investors may not be interested in properties rented at below market rates.Landlords with a sense of decency now face a double whammy-restricted rent increases and a somewhat restricted market if property is offered for sale.This legislation favours incubments at the expense of future renters.Supply is the elephant in the room.Politicians are playing politics with this.Will we now have more legislation to cover payments for car parking,keys,passing on charges for any amount of things.Many tenants who know full well
    they are being fairly treated may very well welcome alternative arrangements rather than face an uncertain future if the property is sold.
     
  18. jem20066

    jem20066 Frequent Poster

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    I have a property rented to good tenants below market I haven't reviewer it in 3 years do I still have time to increase it?
     
  19. moneybox

    moneybox Frequent Poster

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    Is that not pushing it a bit:confused:
     
  20. facetious

    facetious Frequent Poster

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    Likewise, management charges. As there are some landlords who seem to not pay the management charges (certainly in my current development and my last one) it might be a good idea to let the tenant pay these charges. Then, there should be no problem at the end of the tenancy, if the charges have not been paid, deduct them from the deposit. However, this might require a deposit of the equivalent if 2/3 months rent.