Commenting on the introduction of Rent Pressure Zones, which were designed to reduce rent rises in areas where particularly high increases have been seen, Mr Lyons said: "Regulatory measures designed to limit rent increases could only ever have a very limited effectiveness in a market with such a scarcity of supply.
"Indeed, there is evidence to suggest that rent increases for sitting tenants have been only half the size of increases faced by new tenants. The more appropriate solution remains to increase supply.
Of course, an existing tenant may have to leave their property and would then become a new tenant and face the higher rents in new lettings.
A terrible piece of legislation.
Brendan
But a landlord isn't allowed to increase the rent for a new tenant by more than an existing one? I know there is a formula for how many months it has been since the last rent review but still pretty much the 4% per annum.
It is up to the new tenant to "police" this. A new tenant is entitled to;That's what the law says, but in practice it seems that the changeover of tenants affords a landlord an opportunity to go above the 4% without it being spotted?
If they have suspicions that the landlord has increased the rent above 4% I presume they may contact the RTB with the document / copy of their lease and the RTB can verify the previous rent if the tenancy was registered.Additional Requirement for New Tenancies in Rent Pressure Zone
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.
This story in today's Irish Times perfectly demonstrates the distortions caused by the rent control measures -
http://www.irishtimes.com/business/economy/ires-reit-may-set-record-for-rent-for-two-bed-in-sandyford-1.3075622
"Apartments at Ires Reit’s latest development in Sandyford, south Dublin, are set to rent from €2,570 for a two-bed apartment when the scheme launches on July 4th, setting a possible new record for the area.
The Maple, at Beacon South Quarter, is a newly-built development of 68 apartments – four one-bed, 55 two-bed and nine three-bed apartments. It was constructed by the property fund, Ireland’s biggest private landlord, specifically for the rental market, and Ires Reit promises “well-appointed, spacious apartments” with private garden areas, at the location.
Tenants will pay a premium to live there, however, with one-beds due to hit the market at €1,925, two-beds from €2,570 and three-beds from €2,750.
The rates are far in excess of what might be expected in other schemes in the area, and may be an effort by the property investment trust to overcome challenges posed by rental restrictions, by setting rents high to begin with."
if the property has been renovated or off the market for a stated time (can't recall exact figure now) then the rental clock starts again at market rates.I presume they may contact the RTB with the document / copy of their lease and the RTB can verify the previous rent if the tenancy was registered
It is up to the new tenant to "police" this...
If they have suspicions that the landlord has increased the rent above 4% I presume they may contact the RTB with the document / copy of their lease and the RTB can verify the previous rent if the tenancy was registered.
I scanned that and saw 1,925 for a one-bed and thought it must have been somewhere like Adelaide Rd or Fitzwilliam Sq, but Sandyford???? I genuinely feel sorry for anyone renting and/or trying to buy in Dublin and can't for the life of me understand why more skilled people aren't emigrating!
Re: RPZ, I think the intentions were good, but the effects of the policy were not looked into enough. It was political pure and simple, just like the bedsits.
He says that at least 15 of the 52 Balally apartments in the property have been vacant since it was put into the bad-bank.
“In May of last year, Dun Laoighaire/Rathdown County Council asked could they purchase 15 of the vacant units. They were told they could only buy the whole block,” he continued.
Nama has since sold the block as part of Project Gem to vulture fund Cerebrus, Boyd-Barrett claimed.
“Since that deal went through, Cerberus has started to move to evict the tenants… Five of the 21 that I have met are to be evicted in June.
“Others have been told that they will have to pay another €250 a month in heating and hot water charges, previously included in rent. A back-door rent increase of 20%.”
Because obviously the rent is now the rent added to the extra sevrvice charges.
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