Rent Rules for new tenancies

O

On a Plain

Registered User
Messages
43
I have a one bed apartment in Dublin city that i am currently renting out for 900 euro per month. The tenant has been there for about 4 years. The current tenant is leaving the country in June and will be vacating the apartment then. I am just wondering am I restricted to the 4 per cent rule if i bring in a new tenant (ie I can only rent it to the new tenant for 936) ?
Or as its a new tenancy there is no restriction there. The market value is considerably higher now
 
I have not seen anyone ask this question but who is policing this? I know of one apartment that was rented out recently and I cannot see how the rules were no broken? So what is to stop the OP putting this up for rent for say €1500 pm and what are the consequences?
 
Suppose there is nothing to stop people breaking any law.

Consequences as I understand it will first need a dispute being raised with the RTB and the over charging being refunded.
 
Just reading the rules there, I guess this is the pertinent one to me

In the case of a new tenancy in a rent pressure zone, a landlord is required to furnish the tenant, in writing, with the following information at the commencement of the tenancy:

(i) The amount of rent that was last set under a tenancy for the dwelling;
(ii) The date the rent was last set under a tenancy for the dwelling;
(iii) A statement as to how the rent set under the tenancy of the dwelling has been calculated having regard to the rent pressure zone formula.
 
It was widely predicted that this aspect of the new rules would be widely, if not universally, ignored.

There is no law against advertising a property for rent at whatever rate a property owner sees fit.

To subsequently dispute the agreed rent, the incoming tenant would somehow have to prove the rent charged to his/her predecessor - that information is not publicly available.
 
On a Plain said:
Just reading the rules there, I guess this is the pertinent one to me

In the case of a new tenancy in a rent pressure zone, a landlord is required to furnish the tenant, in writing, with the following information at the commencement of the tenancy:

(i) The amount of rent that was last set under a tenancy for the dwelling;
(ii) The date the rent was last set under a tenancy for the dwelling;
(iii) A statement as to how the rent set under the tenancy of the dwelling has been calculated having regard to the rent pressure zone formula.
Click to expand...

I don't believe there is any legislative basis for this "requirement".
 
Sarenco said:
To subsequently dispute the agreed rent, the incoming tenant would somehow have to prove the rent charged to his/her predecessor - that information is not publicly available.
Click to expand...

They would certainly need to know but I wonder if they need to prove it. The previous tenancy agreement would presumably be lodged with the RTB so I guess they have the numbers.

Only way I see this being enforced properly is by the RTB checking tenancy agreements being submitted to them and comparing to the old one. I doubt they have any intention to do that.
 
Sarenco said:
It was widely predicted that this aspect of the new rules would be widely, if not universally, ignored.

There is no law against advertising a property for rent at whatever rate a property owner sees fit.

To subsequently dispute the agreed rent, the incoming tenant would somehow have to prove the rent charged to his/her predecessor - that information is not publicly available.
Click to expand...

If the previous rent is lodged with the PTRB and the new rent is too, its a simple database check for them
 
All I know is my current tenant is registered with the PTRB and the rental amount is registered at 900 euro
If I take in a new tenant in June, I am required to register the new tenancy and rental amount
 
On a Plain said:
If the previous rent is lodged with the PTRB and the new rent is too, its a simple database check for them
Click to expand...

Sure but rents are not publicly disclosed so how could your new tenant know for sure what rent your previous tenant was charged. The RTB role is essentially to adjudicate on disputes - it doesn't have a broader policing role.
 
aristotle said:
Yes you are limited to 4% max increase.

https://www.rtb.ie/rent-pressure-zones/rent-pressure-zones
Click to expand...
Hi Aristotle....I'm not sure that this information is correct in this instance. If the OP and his tenant are in a Part 4 tenancy
agreement isn't the landlord allowed terminate the tenancy at the end of the 4 years. I know in this case that the tenant is leaving
but I'm sure the fact the the tenancy is ending after the 4 years allows the landlord to rent his property again at whatever rent he chooses.

My understanding is that a landlord can terminate a tenancy after 4 years and even rent the property again to the same tenant at a much higher rent under a new tenancy. The next tenancy under the new rules is then covered by a 6 year tenancy.
 
Ann1 said:
My understanding is that a landlord can terminate a tenancy after 4 years and even rent the property again to the same tenant at a much higher rent under a new tenancy.
Click to expand...

No, that is not correct.

In a rent pressure zone the 4% rent cap applies regardless of the length of the previous tenancy or the fact that it may have been a Part 4 tenancy.
 
Tenant is leaving? Just put the rent to market rates and relax. The cops won't be breaking down your door anytime soon.

They can't be arsed chasing real criminals, so why worry about putting the rent to a reasonable level. Don't worry about Convey.
 
I often wonder why some posters think it is helpful to offer their opinions about what laws they feel others should abide by and what laws others should feel free to ignore.
SirMille said:
... why worry about putting the rent to a reasonable level.
Click to expand...

Can you define what you mean by "reasonable level"? Is it different to what our democratically elected legislature considered reasonable?
 
I think the proof in the adherence to this rule will be bourne out in the next daft report. If every LL was to keep to the rule, then we should effectively see a fall in rents, as people like the OP rent a place for €936 which would otherwise be e.g. €1.3k. The current average rental duration is 3-4 years, so a lot of older/lower rents should come on the market over the coming 1-2 years.
As a full-time landlord of multiple properties, I don't see this rule being adhered to at all - simply because it punishes most the landlord who kept rents flat for sitting tenants over the past 3-4 years, and also fixed the rents permanently high for those who pushed them up each year.
Also, I track regularly the rents in the areas I have properties (all are single family units in commuter areas) and rents look to be still rising for new tenancies. I haven't seen a single "€936" type scenario.
 
paddyd said:
I think the proof in the adherence to this rule will be bourne out in the next daft report.
Click to expand...

Absolutely agree with all of that paddyd.

It's a totally unfair law that will not be policed in any meaningful sense. It's already pretty clear to me that it is being widely, if not universally, ignored.
 
You must log in or register to reply here.
Back
Top