Rent increase - not happy

C

charlie MacZ

Registered User
Messages
70
Hi,

Today my landlord has instructed the letting agency to raise my rent from 800 to 900€ Monthly. My lease expires at the end of November, 1 bed apt in D4, not happy about this, is this normal ? I thought we were still in a recession !
 
Rent in D4 for i bed apt still seems reasonable at 900pm. have you tried negotiating or threatened to move ? If you think you can find better value elsewhere then move but I think you may not get it that cheap.
 
Sounds good value to me at 900. Rents have increased a lot but are still very good value in most cases.
 
Ignoring the fact, for the moment, that you may have good value at the increased rent, rent reviews/increases must comply with certain criteria.

To be valid, the notice must be in writing (the law states that it must be served by the landlord - though I'm sure that his agent is OK) and at least 28 days prior to the increase taking effect. It must also give the new rent.

If you dispute the increase, you must do so with the PRTB before the increase takes effect - otherwise you will be deemed to have accepted the increase (provided it is a valid notice). In a claim with the PRTB it is up to you to prove that the asking rent is above the "market rate". that is defined as the rent a tenant is willing to pay and a landlord is willing to accept for a vacant property.

From what other posters have said, it seems that the new rent may be the market rate and you will have to either live with it or move. However, do your research for the rent of other similar properties not only in D4 but more precisely in your exact location.
 
Don't take it personally. While some landlords are reluctant, for good reason, to raise rent on existing tenants it can and does happen.

It may be off topic, but in my opinion the government has no interest in lowering the cost of accommodation for people. They are more than satisfied for rents to rise and for house prices to rise.
 
The reality is that if you had to give €150,000.00 for this Apartment
your interest on it would be about €8,400.00
Service charge €1,000.00.
LPT €225.00,
Repairs and renewals €900.00
Life Insurance on Mortgage €250.00 per year
The total cost per year of above would be €10,775.00
Your new rate is €10,800.00.

Just giving an example of how it is not all profit and I do not think that your rent is dear for the area having recently looked at the Daft website
 
Sure the Rents are increasing but so are mortgages. TheBanks have increased mortgage payments to everybody to simply make all pay for their own mistakes. In essence they are getting away with murder whilst the Government brought in a €150 million special tax on the Banks in the budget. Should have been €500 million in my opinion.
 
In a way, they tried, by putting a cap on the RA. As a result, landlords tend to look for tenants who can pay the highest prices, leaving the RA tenants a difficult job of finding accommodation within their price band. However, at the moment, as there seems to be a shortage of properties to rent, the market is looking for higher rents. The law of supply and demand dominates the market.
 
I have just done a search on Daft in D4 for one bedroom apartments priced between €800 and €1100 and two came up and they were priced at €1100. There were none priced at a lower price in D4. Maybe your Landlord is being more reasonable than you think but there is no harm in bargaining.
 
That good. By the way, I was not getting at you in particular-just saying it as a general comment about bargaining.
 
Well done on bargaining to your advantage. My husband would try to bargain for everything and 90% of the time is successful. No harm in trying. A good reliable tenant would find it easier to bargain than a new tenant as would have a good track record in their favour.
 

I don't get the logic of this: you seem to be implying there's no return.

If you take the costs you mention (excluding the interest), the return is 5.6%, which seems reasonable.

The expectation that you could borrow to buy somewhere, then rent it out and expect to come out in profit says a lot about how we got into the current mess.

(I know this is off-topic, and I'm glad to see the situation resolved).
 
There is no return if you borrowed the €150,000.
As to the comment about making a profit. Renting out property is a business and you do not stay in business if you are not making a profit.
Good to see OP sorted out. You would appear to have done well
 

You are aware that the first consequence of any bank levy is that banks recoup it by hiking up their charges & interest margins?
 
ang1170 said:
The expectation that you could borrow to buy somewhere, then rent it out and expect to come out in profit says a lot about how we got into the current mess.
Click to expand...

If we base our national housing supply plans on a premise that only a super-wealthy cartel can be permitted to invest in residential property, it won't be long before the entire sector will again be swamped in crisis.
 
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