Massive rent increase in 1 year

Boogeyman

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I live in a block of 3 bedroom flats which are all owned by the same management company. Recently I got a letter from a tenant who lives in the same block of flats letting people know that the rent on his place has gone from being 1800 per month to 2400 per month just this feb. Our lease is up in June and i'm expecting the same increase. He was complaining in his letter about the ridiculous increase and I have to agree with him, it is alot more than expected and effectively every person in my flat will have to pay 200 euros extra when our lease comes up for renewal. Is it right for the management company to raise the rent by this amount i.e do we have a leg to stand on in any way if we complain?
 
I believe that this is not allowed.
Although I could be mistaken.

I think that legally it can only be raised by a certain fair market amount.

I think it may be reasonable to argue that a 33% increase in a year is not in line with teh market.

Go to teh PRTB. It is their role to settl eany disputes between tenants and landlords.
 
Rents are dropping in many instances at the moment so I would recommend that you look elsewhere if you get the same treatment as the other flat. As other posters have alluded to there has been a huge increase in supply recently so I would advise that you have a look around
 
PRTB policy is that rents can only be raised in line with reasonable market rates. As rents are dropping at the moment due to huge over supply it seems very unlikely that your apartment will meet this criteria.
 
My god am I reading this correctly? Thats over 550 a week for rent?? Thats madness. A person would be better off with a mortgage at that rate.
 
No its 600 per month each in rent currently and will be increasing to 800 each per month if the rent increase comes into play. Hence 1800 increasing to 2400 for the whole flat.
 
Indeed!!

By my calculations, you could afford a mortgage of almost €100,000 for this and coul live here....

...err....


Sorry, couldn't find anywhere in Ireland listed on Daft under €100,000

care to post your calculations?
 
Ok folks just to make it clearer:

3 People living in the flat
Currently we pay 600 each per month = 1800 in total per month.
Increase will mean we pay 800 each per month = 2400 in total per month.

I don't think I can make it any more straightforward than that..
 
Could it be possible that the other guy is a disgruntled tenant that is causing trouble?
 
Before your rent review is up check out other properties of equal quality to yours and if the rent is less then what the landlord proposes be prepared to move. Forwarned is forearmed. Also you might find the landlord does not increase your rent at all if you tell him you're moving. Just to add I cannot see how an increase of more then 30% in justified when inflation is circa 5%.
 
Thanks for the replies. The main thing is that they own the whole block of flats that we live in so they are pushing up the rent on all of them. From discussing with the tenant nearby I have found out that they have already put up the rent on a few places to 2400 and the tenants have just paid the new rate or if the flat is empty they are making new tenants pay this rate. So I think their side of the argument might be that properties in the recent locality are this price so you have to pay what is the norm nearby. We are trying to get a few tenants from other flats together to complain as a unit so hopefully this will make more of an impact.
 
Have you looked to see what similar properties in the same area, not run by the management company, are renting for? If they are significently less that the increased amount why don't you simply move?

The only body worth complaining to is the PRTB. Complaining to the Management Company but then staying put when they ignore you, which appears to be the case with the other tenants, is next to useless.
 
The residential tenancy act states that the rent can not be set above the market rate so I get the feeling that the owner is trying to manipulate the market rate to exploit more from the tenants here. The way to stop them carrying through with these crazy hikes is to lodge a complaint to the PRTB and provide evidence that this is not the market rate for the surrounding area.

From discussing with the tenant nearby I have found out that they have already put up the rent on a few places to 2400 and the tenants have just paid the new rate or if the flat is empty they are making new tenants pay this rate.
It would be better if nobody accepted the hike but just because one or two individuals accept it does not automatically make it the market rate for the area. If there are empty properties that are not being rented at this rate then it undermines the owners claim that it is actually the market rate.

So I think their side of the argument might be that properties in the recent locality are this price so you have to pay what is the norm nearby.
Surely the same people do not own all of the apartments in the area though? If there are apartments within 5 minutes of you that have a similar specification, the rents that those are commanding would need to be taken into consideration when determining the areas "market rate" as well. If you can find ads on daft for property in the area that is lower than yours then print them out to support your case. If you can find other tenants in the area who are willing to tell you what they are paying in rent, and maybe provide documentary evidence to the same, then this could be useful too.

We are trying to get a few tenants from other flats together to complain as a unit so hopefully this will make more of an impact.
I think you should all make individual claims to the PRTB. It would be more effective if the owner of these aparments has 100 different claims against him.

I think you have a very strong leg to stand on here in complaining about such a large hike. The key is to come up with a figure that reflects the real market rate in the area and justifying it. Once you have a complaint in to the PRTB, the rent can not be touched until a resolution is found.

Out of interest, which area in Dublin is the apartment block?
 
Just to add I cannot see how an increase of more then 30% in justified when inflation is circa 5%.

I think you are all missing the point. It's not the increase that matters, but what the current market rent is. If the current rent of €1800 is well below the market rate, then the increase is understandable.

The only issue is what the market rate for these apartments should be. If the landlord can rent them out at €2,400, then that is what he should be charging. Landlords don't like losing good tenants. If you have looked after the place and paid your rent on time, tell him that it is too high and that you will move unless he reduces the rate.

Brendan
 
I think you are all missing the point. It's not the increase that matters, but what the current market rent is. If the current rent of €1800 is well below the market rate, then the increase is understandable.

The only issue is what the market rate for these apartments should be. If the landlord can rent them out at €2,400, then that is what he should be charging. Landlords don't like losing good tenants. If you have looked after the place and paid your rent on time, tell him that it is too high and that you will move unless he reduces the rate.

Brendan
Exactly. It may be the case that you have all been paying well below the market rate for the last few years. Have you done a Daft.ie search for your area? If not do one and see what the average rental is.
 
Again, your best bet is to walk.
Hardly a hassle free route to take for the OP and all involved though is it?

If the owner is attempting to set the rents above the market rate, the law is on their side, so if that is the case, I suggest they lodge a complaint with the PRTB first to stop the rental increases going through and then let the owners try and explain to the PRTB where they got their calculations for the current going rate.

If the market rate for this area is actually at this level, then they should move out as it is a rediculous price to pay for a room in a shared apartment, especially when there is so much supply out there.
 
The flat is quite close to the city centre and is roughly about 4 or 5 years old from what I gather. It is an ideal location and a decent flat so would prefer not to move out to be honest. I have actually looked at daft in the last couple of days and there is a room going in my block for around the 650 figure. There is also a whole flat available and it is at the new rate of 2400.

Thanks again for all the advice - I think the best approach to take is to liase with the other tenant and lodge a complaint with PRTB. If there is some success in reducing the new rental increase come summer time I will stay, otherwise I will be looking elsewhere.
 
I have actually looked at daft in the last couple of days and there is a room going in my block for around the 650 figure. There is also a whole flat available and it is at the new rate of 2400.
Were there any other properties in the general area (a five or ten minute walk) of a similiar quality to which you could compare the prices?

In order to make a complaint to the PRTB, you need to show that the increase is above the market rate. To date, there is nothing (other than a general knowledge of Dublin rental costs) to suggest/prove it's above the market rate.
 
To date, there is nothing (other than a general knowledge of Dublin rental costs) to suggest/prove it's above the market rate.
The OP just said that there are rooms available in the same block for EUR 650 p/m. The owners are trying to charge EUR 800.
 
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