New Rent Controls low rent

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Richie1974

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Hi

Can anny advise.

I have one property that is currently rented the tenant has been in the property for over 6 years.

The rent is way below market value , probably by at least 40%, my financial circumstances have changed and I need to get the rent closer to market value.

The tenant is on HAP and I believe she is a few hundred euro under the cap.

I have explained that I need to get the rent up or I may be forced to sell, the tenant is not in a position to make up the difference that is needed .

So my question-
Is it possible to renew the contract with the tenants agreement to get the rate closer to market/HAP rates, and how would HAP react to this?

Or is a case they would have to voluntarily leave and then come back to a new contract??


I am really struggling for a solution, hopefully someone can help.


Thanks
Rich
 
Richie1974 said:
Is it possible to renew the contract with the tenants agreement to get the rate closer to market/HAP rates, and how would HAP react to this?
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Bottom line is no it is not. Even with the new rules it seems that for as long as this tenancy continues you'll be stuck with this rent plus 2% or inflation. Signing a 'new' contract with the same tenant doesn't change things. It is just a piece of paper.

If your tenant leaves voluntarily after March 2026, you can then re-let at market value to a new tenant, but you will be granting a fixed 6 year lease. Again, unless the tenant leaves voluntarily, you will get 2% or inflation if lower for 6 years and an increase to market value at year 6 (that may never happen as the government of the day won't be able to allow large sudden rent increases to happen).

If she won't be leaving voluntarily, the choice is keep going with the rent you have inc. 2% pa possibily forever or sell up and get out.
 
Hi Greenbook.

Thanks for your reply and information

Please excuse my next question if it is silly,I just want to rule out everything out so I know where I stand.

Could the tenant voluntarily leave and come back to a 6 year lease?
 
Richie1974 said:
Could the tenant voluntarily leave and come back to a 6 year lease?
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Yes, they could. But keep in mind that the RTB will see this via annual registration and could check up on you. They will be looking for things like that.

If you're picked up and the tenant doesn't swear blind that she left, changed her mind and came back and/or the RTB don't believe her, you'd be facing a €30,000 fine and being named and shamed. The Minister has said that the fines will be increased in the new regime.

You're also creating a hostage to fortune. If you fall out with your tenant, she could report you.

I would think that it is a very risky strategy.
 
Yeah you're right it seems too risky . I want to keep everything legit.
Selling may be the only option, which suits neither myself or the tenant.
 
Your only options are significant refurb or leave untenanted for 2 years.

If you are that much below market then 2 years vacancy may be worth your while.

It will likely need a decent refresh so you could do that work yourself over time if you wanted to.
 
Leaving it untenanted for 2 years may be an option, although I would feel terrible for the tenant , I could not of asked for a better person to rent my home.
 
DannyBoyD said:
Agreed. It's a lousy thing to have to do, but thats our bonkers rent control for you.
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One of the reasons I am getting out, you end up having to do silly, nonsensical things like this or engage in dishonest or semi-legal activities. When something as straightforward as this, all you're doing in renting your property to a willing tenant, involves these sorts of contortions, it is a clear signal to me that it is time to get out
 
Brendan Burgess said:
you might be able to sell to the council who will then leave them there as a council tenant
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Hi Brendan,

I had previously enquired about the 6 year scheme to Fingal Council for existing tenants but they were not taking on any more properties at the time I think due to lack of funding, I believe they now have additional funding, I have just been in touch with them today and waiting to hear back.

I think the 10year scheme is for vacant properties, but will confirm.

Thanks
 
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