Rent set after March on idle property

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PoppyPops

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Would someone be able to advise on this please:
We told tenant we may sell up, but never gave notice. It was just a feeler. There was no issue with them and they have gone off looking around and has asked for reference so it looks like they will move of their own accord with no hassles on either side.
We are in a RPZ getting €1475....could easily get €2,000 market rate.
If they move out in the next month or two and we don't rent and leave idle until after next March, can we then rent at market rate? We would do some work to do it up while idle. I can't see clear guidance on this situation. or are we tied to the 2%? If we are, we are just thinking it's time to sell up ..... would appreciate anyone that knows answer?
thanks
 
Leave it idle and rent after March next year and set the market rate 2k pm or whatever....that's my understanding
 
Persia said:
Leave it idle and rent after March next year and set the market rate 2k pm or whatever....that's my understanding
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Yes, that is my understanding too. If you leave idle and rent in March, then the new rules apply and you can rent at market rate.

But keep in mind:

1. The rent only increases annually at 2% or inflation if lower for the next 6 years if the tenant stays in the property

2. It may be difficult to reset to market rate at year 6 - the tenant could fight it, there could be a rent freeze in place

3. If the tenant remains, you cannot get vacant possession to sell before year 6. Your sale price if you have to sell early will be much less because of this.

So you need to decide whether you are happy to remain a landlord for the next 6 years at market rate plus 2%/inflation. I'd expect the inspection regime to ramp up as well, so that would add to your costs.

Plus if your new tenant is difficult, you are stuck with them until they leave - you can't decide you're selling up in the middle of the 6 year tenancy.

Overall, you need to balance the advantage of the reset of the rent to market value against the restrictions you will be placing on yourself (and likely future changes to regulation).
 
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May I ask..if this landlord were to rent out before March 26 to new tenant..does the 6 year rule still imply...and land lord can give notice to evict and sell property anytime they want?
 
PoppyPops said:
We told tenant we may sell up, but never gave notice. It was just a feeler. There was no issue with them and they have gone off looking around and has asked for reference so it looks like they will move of their own accord with no hassles on either side.
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You should give them formal notice.

But then if you don't sell, you could be in trouble.

Maybe your informal notice is better.

But if they are paying €1,475 and have to pay €2,000, they might not move out.

And if you let it again, they might say that they did not leave voluntarily, which would probably limit you to 2% increases and a fine from the RTB.
 
Property owner has not given notice; there's no such thing as "informal" notice.

Whilst I'm open to any one who can provide a case to the contrary; without any documentation to support, I doubt tenants will succeed in any claim

Incidentally, if tenants do give you verbal notice - ask them to put it in writing.
 
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