2 questions on Rent Rules

Discussion in 'Property investment and tenants' rights' started by p walsh, Jan 12, 2017.

  1. p walsh

    p walsh New Member

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    4
    Hi, 2 quick questions if ppl can help me please!

    Have 2 bed apartment in Dublin rented out for €1400, which is below market rents of €1650, as tenants have been with me for 8 years. My current situation is that I need to increase the rents as much as possible for mortgage payments etc.

    Last increase was to €1400 on 30th May 2016.

    1. When can I give notice to tenants of increase, to maximize returns over the coming years? It's 4% increase right?

    2. Is this new rental cap for 3 years only? What will happen after 3 years? Free to set whatever rents we want?

    Many thanks
    P
     
  2. Sarenco

    Sarenco Frequent Poster

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    4,176
    The earliest you can give (90 days) notice of a rent increase is 30 May 2018. Thereafter, you can review the rent on an annual basis. Yes, any increase is capped at 4% for as long as Dublin is determined to be a "rent pressure zone".

    Rent certainty measures (i.e. the 4% cap) will continue to apply until the next rent review is due to be carried out. Thereafter, if Dublin is no longer determined to be a "rent pressure zone" you cannot increase the rent by more than the market rent (having given 90 days notice of the rent increase) having sought three comparable properties advertised within the previous four week period.
     
  3. p walsh

    p walsh New Member

    Posts:
    4
    Thank you.

    So when Dublin is no longer a pressure zone, can I increase it to market rate after showing comparable rents either Immediately upon the announcement, or would I have to wait till the end of that years contract with the tenant to put it up?
     
  4. rob oyle

    rob oyle Frequent Poster

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    447
    At this stage, I don't think anyone can answer that question with any certainty - what do we expect our politicians to be doing when we get to that point? One would expect that the temporary measure would be removed but who knows?
     
  5. Sarenco

    Sarenco Frequent Poster

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    4,176
    Well at that stage you can only review the rent once a year and you still have to give 90 days notice before any increase takes effect - the only thing that changes at that point is that the 4% cap falls away.

    One interesting nuance in the legislation (at least how I read it) is that the two-year rent review cycle is retained if an area is never determined to be a "rent pressure zone", whereas it falls away at the end of the current cycle in a "rent pressure zone" (i.e. rents can be reviewed on an annual basis once the current two-year cycle is concluded). There doesn't appear to be any provision in the legislation to reinstate the two-year cycle once an area ceases to be a "rent pressure zone".

    Of course, to rob oyle's point - this could all be changed again by that stage!