If the rent was last set/increased last year then the 4% applies. However, if you did not increase the rent since, say the start of the tenancy then you should apply the formula as set out in the Act. If you are not good at maths (or can't follow the formula which does not follow the normal way (BODMAS), have a look at the RTB website and their Rent Calculator.
Rent Rules for new tenancies
- Thread starter On a Plain
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If the rent was last set/increased last year then the 4% applies. However, if you did not increase the rent since, say the start of the tenancy then you should apply the formula as set out in the Act. If you are not good at maths (or can't follow the formula which does not follow the normal way (BODMAS), have a look at the RTB website and their Rent Calculator.
Gordon Gekko
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Ye Gods you think the PRTB are capable of this
Historically, rent increases in relation to existing tenancies were rarely logged with the PRTB.
On a Plain
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Ye Gods you think the PRTB are capable of this
I dont really know what they are capable of to be honest
I havent had any dealings with them beyond registering my tenancy
I didn't realise they had this, thanks - and it makes for interesting reading.
Heres a real example of mine:
3-bed semi rented for €1,200 in Jan 2015.
New tenancy: if it was to be rented to a new tenant in Jan '18, the RTB calculator says:
€1200 x ( 1 + 0.04 * 36/12) = €1344.00
Sitting tenant: However, if I was to increase the rent in Jan '18 for my sitting tenant (which I wouldn't, they're fantastic), it would be:
€1200 x ( 1 + 0.04 * 36/24) = €1272.00
For ref, the market rate is sitting around €1,400 at the moment.
This whole thing is a joke. I have a 3 bed rented for 1200, I haven't put the rent up in a couple of years. So this year I planned to bump it a bit as neighbouring houses are renting for 1800, but I am limited to 4%. And if the tenants move out I'm still limited to that. All because I was a decent person and didn't jack up the rent for a few years! The property is with an estate agent and so he will have to adhere to this nonsense leaving me no choice but to take it back from him, rent and manage it myself for the going rate. Not register with PRTB as I can't let them see the jump in rent. Honestly what a joke you do everything above board in this country and they penalise you! Is that it in a nutshell or am I missing something?
S
SirMille
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I increased the rent on my place from 1200 to 2000, +60%.
Nobody moved out.
Nobody moved out.
Brendan Burgess
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I am sure that they can claim back the €750 from you at any stage as you are breaking the law. I agree that it's a stupid law, but this tenant can hold this over you for a long time to come.
Brendan
Brendan Burgess
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Do you have a mortgage? If so, then you can't claim the interest as a deduction for tax purposes if you are not registered with the PRTB.
Brendan
S
SirMille
Guest
I got the increase in before this rent pressure zone nonsense raised it's ugly head.
I'm confused.
This thread is about the new rent control measures. If those measures weren't applicable to your rent review decision, what exactly is the point you want to make?
Are you simply saying that you were lucky?
Gordon Gekko
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In my experience, tenancies are generally registered but rent increases typically aren't.
As a result, a huge spike in rent when a tenancy changes doesn't provoke outrage in PRTB Towers because they've no visibility on what went before.
As a result, a huge spike in rent when a tenancy changes doesn't provoke outrage in PRTB Towers because they've no visibility on what went before.
I have to be honest here but I did not understand the rules. I have some properties that I rent out... tenants from a few of these properties moved out of their own accord... some only stayed for a few months (despite a one year lease) and moved on elsewhere. My understanding was that you could only raise the rent by 4% for sitting tenants.... and if new tenants moved in this did not apply. So each time there was a new tenancy I upped the rent to the market value. In one of the properties two of tenants started a bidding war... I created new tenancies with the PRTB using the actuals new rent.... so the RTB could easily see that I exceeded the 4% cap.
So... if my reading of this thread is correct... it is only if the new tenants made a complaint with the PRTB about paying more than 4% than the previous tenants....
The new tenants have absolutely no idea what the previous tenants paid... so....
What happens next?
So... if my reading of this thread is correct... it is only if the new tenants made a complaint with the PRTB about paying more than 4% than the previous tenants....
The new tenants have absolutely no idea what the previous tenants paid... so....
What happens next?
When did the change of tenants take place? The new rules only came into effect last Christmas.
In any event, if your new tenants are happy with the freely negotiated rent, I wouldn't worry too much about it. It is possible that they will make a complaint to the RTB that they are paying too high a rent but it seems unlikely.
In any event, if your new tenants are happy with the freely negotiated rent, I wouldn't worry too much about it. It is possible that they will make a complaint to the RTB that they are paying too high a rent but it seems unlikely.
I dread to think what the fines and damages awarded to tenants where there is an increase in rent above the 4% cap, knowing that the RTB are more favourable to tenants than to landlords.
However the favouritism I do not believe - it is just a case of landlords not having or providing sufficient/correct evidence for their case.
The RTB does not impose fines or award damages. Its role is simply to resolve disputes between landlords and tenants - either by mediation or adjudication.
I do, however, agree with your broader point - I have yet to see any real evidence that the RTB does not act impartially in discharging its statutory functions.
I do, however, agree with your broader point - I have yet to see any real evidence that the RTB does not act impartially in discharging its statutory functions.
Are you sure about this, just going through a few of their determination orders I see two with amounts for damages. [broken link removed]
Yes.
The RTB seeks to resolve disputes between landlords and tenants by mediation or adjudication. It does not award damages to a party, in the sense that a court may award damages to a party for breach of contract, negligence, etc. The distinction may sound theoretical but it is an important distinction from an enforcement perspective.
Anyway, I think we are in danger of going off topic. Let's try and stick to the new rent control rules on this thread.