Can I increase the rent this year? RPZ

p walsh

Registered User
Messages
21
Hi,

Have had tenants in rented apartment in RPZ since around 2010.

Recent leases: 30th May 2016
Then, on 30th May 2018, I gave them 90 days notice of rent increase from €1400 to €1456, with latest agreement starting on 26th Aug 2018.

My question is, can i increase the rent further after 12 months by another 4% on 26th Aug 2019? Or when can i increase the rent to the maximum possible pls?

Thanks for all help,
P
 

Sarenco

Frequent Poster
Messages
6,176
You can review the rent once every 12 months.

The last time you reviewed the rent was 30 May 2018 so you can review the rent again tomorrow if you want.

Obviously the RPZ formula puts a ceiling on the amount of any increase and you still have to give 90 days’ notice of any increase.
 

p walsh

Registered User
Messages
21
Hi, our last contract on 26th August 2019 included the 4% increase.

I would like to increase it again by 4% this year. When is the earliest I can give them notice of increase please?
 

p walsh

Registered User
Messages
21
I actually gave them notice of the last increase on 13th June 2019 after our conversation above

so can I give them notice now today? And does it have to be 90 days?
 

Sarenco

Frequent Poster
Messages
6,176
I actually gave them notice of the last increase on 13th June 2019 after our conversation above
Ah, in that case you can issue a notice on 21 July (assuming the moratorium on rent increases isn't further extended).

Notice must be served at least 90 days before the date from which the new rent is to have effect.
 

p walsh

Registered User
Messages
21
Thanks Sarenco for all your help.

So on 21st July I serve them the written notice of the rent increase, and 90 days later on 19th October this increase can kick in.

so do I do a new contract on 26th Aug for 1 year, stating that the rent will stay the same from 26th Aug-18th October, and then the increase will kick in for the rest of the contract from 19th October?
 

dereko1969

Frequent Poster
Messages
2,742
How are rents in your locality for similar properties? You may get a surprise with them deciding to leave for another cheaper property. Is the 4% rise worth it?
 

Sarenco

Frequent Poster
Messages
6,176
So on 21st July I serve them the written notice of the rent increase, and 90 days later on 19th October this increase can kick in.
By law, the notice period starts the day after the tenant receives the notice. So, if the tenant receives the notice on 21 July,, the notice period is counted from 22 July. It is a good idea to give a couple of extra days’ notice to make sure the legal minimum notice period is covered.
so do I do a new contract on 26th Aug for 1 year, stating that the rent will stay the same from 26th Aug-18th October, and then the increase will kick in for the rest of the contract from 19th October?
Once a tenancy goes beyond six months, there's really no great advantage (IMO) in having a written lease agreement in place.
 

Thirsty

Frequent Poster
Messages
2,350
How are rents in your locality for similar properties? You may get a surprise with them deciding to leave for another cheaper property. Is the 4% rise worth it?
Unlikely scenario - if rent is say 1k per month, increase of 4% brings it to 1040. Few people will accept the hassle of moving for the sake of €40 a month.

In any event you have to show rents of 3 comparable properties in your notification.
 

christopher..

New Member
Messages
6
At the start of the year, I issued a rent increase to the tenants. It was due to take affect during the lockdown. I decided not to go ahead with it as they are good tenants and they have saved me money by fixing things or telling me what trade is necessary for a repair.
If they left, I would be faced with readvertising and interviewing tenants in the middle of a pandemic. Also using the rtb formula, I hope I will be able to increase the rent past the 4% due to not increasing the rent for the last 3 years.
 

Sarenco

Frequent Poster
Messages
6,176
@p walsh

With apologies, I need to correct what I said above re timing.

On reviewing the legislation again I don't see any reason why you couldn't review the rent annually in the normal manner (subject to the RPZ restrictions) and issue a notice of an increase during the emergency period, provided the increased rent doesn't take effect during the emergency period.

So, in your case you could issue a notice of a rent increase today to take effect on the later of 90 days from receipt of the notice or the ending of the emergency period as determined in accordance with The Emergency Measures in the Public Interest (COVID-19) Act 2020.
 

Sarenco

Frequent Poster
Messages
6,176
I see a further extension to the emergency period is under consideration -

 

llgon

Frequent Poster
Messages
574
Would be a daft policy. CSO showing rents falling for several months now.

Mass unemployment = more vacancies.
Many tenants paying well below market rate. This would remain the case even with a 4% increase in their rent and a fall in rents generally. Lots of examples from posters here of rents that were 30-40% below market rate.
 
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