Query re new rent controls

A

Advicepls

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Hi all, wondering if you can help as I am a bit confused by all this carry on. So I have my property rented for 1200pm. Other houses in the estate are renting for 1800 pm now. My tenants haven't had an increase in 2 years so I am now giving them their 90 day notice of the 4% increase. That's all fine, I get it.

If my tenant moves out and I need to find a new one, can I only charge them 4% above what the previous tenant was paying? Surely that's not right. That is what the estate agent is advising me. There is not a hope I am renting my property to new tenants for way below value. As it is the rent barely covers the mortgage.
 
Your agent is basically right - the RPZ formula determines the maximum rent you can charge to a new tenant (assuming you don't leave the property vacant for two years or carry out a "substantial refurbishment").

Well, at least that's what the law provides.
 
Thanks Sarenco. So that's nuts right. Surely no one is going to comply with that. So what penalty do you face if you do decide to charge market rate? It makes me so angry, you do everything above board and this is what you face. I know people with rental properties not registered with prtb, not paying tax etc and totally under the radar. Yet I'm the one being penalized.
 
There's no penalty as such but a tenant can make a complaint to the RTB that they are being charged too high a rent.

I agree that the rent control legislation is grossly unfair and completely counter-productive. You might want to let your local TDs know your feelings on the matter.
 
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