Rent increase but landlord does not collect the additional money

Discussion in 'Property investment and tenants' rights' started by Learner2015, May 22, 2018.

  1. Thirsty

    Thirsty Frequent Poster

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    @Sarenco
    I think we can agree the first paragraph is correct!

    Re-reading my second para however & I can see it's unclear. What I was trying to say was that the existing tenants get a 2 yr rent freeze and with new tenants the 2 year clock would start again.
     
  2. Sarenco

    Sarenco Frequent Poster

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  3. Dinarius

    Dinarius Frequent Poster

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    Ok. Now I'm confused.

    As my tenants have been there since 2014 (i.e. pre- December 24 2016) are you saying that an increase of (approximately) 4% this coming October 2018 from €1200 (the level it has been at since October 2016 - i.e. two years) to €1250 would have to be frozen for another two years (until 2020), or could it be increased again by 4% in 2019?

    I got the impression that it could be increased again in 2019.

    Many thanks.

    D.
     
  4. Sarenco

    Sarenco Frequent Poster

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    I'm not sure where the confusion lies – you can review the rent on (or any time after) 1 October 2018 and annually thereafter, subject to the RPZ formula where appropriate.

    One quirk of the current legislation (at least how I read it) is that the ability to do an annual rent review continues after an area ceases to be designated as an RPZ, whereas rent can only be reviewed on a bi-annual basis in an area that has never been designated as an RPZ.
     
  5. Thirsty

    Thirsty Frequent Poster

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    Last edited: Jul 10, 2018
    Now I'm confused - I thought when they introduced the RPZ you couldn't review rent until 2 years had passed....

    Edit to add: I've re-read the RTB stuff now - they've created a 'rent calculator' which makes it a bit easier to understand - in fact a print out of that is a handy thing to include in your notice to your tenants.
     
    Last edited: Jul 10, 2018
  6. Dinarius

    Dinarius Frequent Poster

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    I used the calculator here> https://onestopshop.rtb.ie/calculator/rpz

    I used October 2014 as the start date and October 2016 as the date the current rent of E1200 was set.

    As expected, the answer it gave was E1248, i.e. E1200 + 4%.

    But, I am still confused as to whether this can be reviewed again in 2019, or whether I have to wait another two years until 2020.

    Thanks for the feedback.

    D
     
  7. Dinarius

    Dinarius Frequent Poster

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    Ps. One other thing...my area falls into neither category. It has been designated RPZ and it continues to be so. So, I presume that only bi-annual reviews are allowed?

    Thanks.

    D.
     
  8. Sarenco

    Sarenco Frequent Poster

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    That means you provided that the new rent is to take effect on 1 October 2018. You are forgetting that (a) you cannot review the rent before 1 October 2018; and (b) the earliest that any rent increase can take effect is 1 January 2019 (you have to give 90 days' notice of any rent increase).
    Again, you can review the rent annually after the next rent review. Where's the confusion?
    Yes but under the current rules the designation will automatically expire after three years.

    Bottom line - after the next rent review, you can review the rent on an annual basis.
     
  9. Sarenco

    Sarenco Frequent Poster

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    Well, you thought wrong!o_O As a wise man once said...
     
  10. Dinarius

    Dinarius Frequent Poster

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    If I input the "Date new rent to take effect" as October 1, November 1, December 1 and January 1, I get the following results: 1248, 1250, 1252 and 1254, which makes sense.

    I'm still not clear as to how you establish that the reviews can be annual thereafter since the calculator will only accept dates that are 24 months apart - though I hope, obviously, that you are correct! :)

    While I understand that there must be 90 days notice of a rent increase; wouldn't it be logical that this be permitted to be given within 90 days of the current lease coming up for renewal (i.e. July 1 for lease renewal on October 1) rather than 90 days into the new lease? i.e. Notice on October 1 for implementation on January 1. Notice three months before the end of an existing lease would then allow tenants three months notice to make alternative arrangements, if they didn't wish to renew the lease on October 1, rather than renewing and finding they have to pay 4% more three months into the new lease. Or, perhaps I'm misunderstanding your point....

    Thanks.

    D.
     
  11. Sarenco

    Sarenco Frequent Poster

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    Well, that's what the legislation provides for.
    I'm not having that problem.
    Perhaps but I wouldn't look for logic in the RPZ legislation.

    Bear in mind that the RPZ formula will equally apply to the rent charged to any new tenants.
     
  12. Dinarius

    Dinarius Frequent Poster

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    Ok, thanks.

    So, last question....

    Projecting forward a year...the lease will be up for renewal again October 1, 2019.

    Will any rent increase then be applicable from January 1 2020? i.e. one year after the January 1, 2019 increase?

    Thanks.

    D.
     
  13. Thirsty

    Thirsty Frequent Poster

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    @Sarenco - don't think the RTB would have a case for me NOT increasing the rent annually! ;)
     
  14. Sarenco

    Sarenco Frequent Poster

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    Again, if you review the rent on 1 October 2018, you can review the rent again on 1 October 2019. In each case, any rent increase requires 90 days' notice in writing to the tenant before it becomes effective.