Government to Introduce Rent Caps in Dublin & Cork

Discussion in 'Property investment and tenants' rights' started by Sarenco, Dec 13, 2016.

  1. sublime1

    sublime1 Frequent Poster

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    Has anyone been able to find a definition of what "substantial renovations" entails? And how would one go about demonstrating that? And to whom?
     
  2. Sarenco

    Sarenco Frequent Poster

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    Last edited: Dec 20, 2016
    http://www.oireachtas.ie/ViewDoc.asp?DocId=-1&CatID=90&m=z

    That phrase wasn't ultimately used in the amending legislation - it was replaced with "a substantial change in the nature of the accommodation provided under the tenancy occurs".

    In the event of a dispute, you might have to demonstrate that to the RTB.
     
    Last edited: Dec 20, 2016
  3. sublime1

    sublime1 Frequent Poster

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    I'm in an unusual situation, so would appreciate some advice. I'm a reluctant landlord, renting my own home after emigrating for work reasons. It's been a very difficult few years, and I've learned far more than I wished about the realities of renting out one's home from abroad. The last few years the rental income improved, but I didn't raise the rent by much as I was happy with the tenants. They have just told me they are moving out after Christmas to buy their own place, and while I was sad to see them go, I was pleased to see that I would be able to get a higher rental on the property as the market rate has increased. Pleased, that is, until I saw that this legislation was announced.

    My property will be vacated in early January, and I'm wondering what is best to do. If I rent it out immediately, am I obliged to limit the new rent to 4% increase on the old rent? Should I wait in case landlords organisations appeal this legislation? There are some pretty significant improvements I could do to the house that might fit in with the "substantial change" ruling. If there were to be a dispute, would it be the RTB who would bring it based on the previous rent compared to the new rent? Or is it the new tenants who might dispute? We're talking a difference of €4000 per annum over a minimum of 3 years, so I need to make the best decision.

    Would be great to get some insight from people here.
     
  4. Sarenco

    Sarenco Frequent Poster

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  5. Bronte

    Bronte Frequent Poster

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    How much will you be spending on renovating it?

    Of course if one were really clever one could increase the last months rent. And make sure the tenant pays it. Then let them stay free the two weeks in January, or give them a Christmas gift. Equal to your rent increase, in cash. And go into the PRTB website and change your rent amount now.

    I'm sorry but I think it's riduculous that a landlord has left tenants without rent increases and it's this landlord is now being penalised for doing so.

    I also would advise you to still do some renovations. Houses need constant work and in my experience when long term tenants leave is a really good time. (last time I did a house it cost 7K - painting, repairs, tiling kitchen and hall, tile bathroom, cleaning etc). It also means you'll get top rent, and attract the right sort.
     
  6. T McGibney

    T McGibney Frequent Poster

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    Get legal advice urgently. Today if possible.
     
  7. sublime1

    sublime1 Frequent Poster

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    Thanks for the response. Well, regarding your last sentence, I certainly won't be getting top rent after this new law, that's for sure!

    I don't think your advice about the rent would go well, either with the RTB or my existing tenants. I cetainly wouldn't feel comfortable myself going down that road. Like many posters I've seen, I actually don't mind the 4% limit that much, but the idea that it applies to new lettings is really absurd.

    Regarding renovations, the house currently doesn't have central heating so was thinking of installing that. But only if it would be regarded as substantial enough to get an exemption per this law. The house is very warm and there is no actual requirement to do this, but it certainly is something I'd like to do at some point when I can afford it.
     
  8. Sarenco

    Sarenco Frequent Poster

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  9. kelly123

    kelly123 Frequent Poster

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    I have a 2 bed apartment with 2 secure underground car parking spaces rented in Dublin. Tenants have been there since 2011. Rent is currently about €400 per month below market rate. I kept it low as they are good tenants and I wanted to keep them. The original lease has expired and review on rent is due in August of this year. I can only get an extra €54 per month thanks to the new controls. To compensate, I was hoping to rent the car parking spaces separately. Is this allowed?