SBPost - "Landlords offering rent-free periods to entice tenants must disclose deals to regulator - RTB"

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ClubMan

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Landlords offering rent-free periods to entice tenants must disclose deals to regulator - RTB

Operators of new-build apartment blocks in Dublin have started to offer rent-free periods as competition for new tenants heats up in the market
www.businesspost.ie www.businesspost.ie
Article paywalled but here's a snippet:
Rosemary Steen, director of the Residential Tenancies Board (RTB), said landlords offering rent-free periods to tenants need to disclose these arrangements to the agency when they register a new tenancy.

“We're the owner or the custodian of the registry data. If somebody's doing [a rent-free deal], and they don't register with us, that's non-compliance,” she said at a conference organised by the RTB last week.
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Is it possible when registering a tenancy with the RTB to include details of a rent- free period?
 
It also begs the question - what is the problem here. The one I saw advertised involved 2 weeks rent free if you signed up for the lease before Black Friday. Surely this is good for tenants?

Also, does the legislation say that you must report rent free periods or special offers like this.

Some landlords would give long standing tenants a small discount at Christmas for example. Are they in breach of the Residential Tenancies Act for not reporting that. How do you report it in any event?

This seems like overreach when there are far more serious issues in the rental market - huge backlogs for having RTB cases heard for example.
 
Did she disclose the reasoning behind it? If you offered say 1 month free on a €2,000 a month property, are the RTB going to put the annual rent at €22,000 instead of €24,000, so any future increases is based on the lower amount?
 
I would consider it an issue as it is a way of getting around RPZ zones. You register a very high price and offer free periods. You then can limit the rent free period and can increase by under 2 per cent while still increasing your income by more.
 
Steven Barrett said:
Did she disclose the reasoning behind it? If you offered say 1 month free on a €2,000 a month property, are the RTB going to put the annual rent at €22,000 instead of €24,000, so any future increases is based on the lower amount?
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Just this (from the article):
She added at the point of registration, landlords are required to inform the RTB of the full rent amount being charged to the tenant.
“They are also required to provide the frequency that the rent is paid. This can be recorded as weekly, fortnightly or monthly. It is a landlord’s responsibility to provide accurate and up-to-date information when registering a tenancy.”
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ClubMan said:
Just this (from the article):
She added at the point of registration, landlords are required to inform the RTB of the full rent amount being charged to the tenant.
“They are also required to provide the frequency that the rent is paid. This can be recorded as weekly, fortnightly or monthly. It is a landlord’s responsibility to provide accurate and up-to-date information when registering a tenancy.”
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How exactly do you report it? The registration process allows you to insert the rent and the frequency, but if it is monthly rent with one month free, I don't think there is any mechanism to report that.

I suspect though that Steve Barrett is correct it is to catch people putting in very high headline rents, reducing them via rent free periods, but basing the next increase off the top rent. That said, as the RPZ system effectively mandates that when you enter it for the first time it should be at the highest rent possible, so the RTB shouldn't be surprised when things like this happen.
 
Greenbook said:
does the legislation say that you must report rent free periods
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I'd very much like to see what RTB grounds this 'reporting' requirement on.

Never mind the fact that its impossible to do so.

It highlights, yet again, the nonsense of rent control legislation.

Incidentally the 'high initial rents' are as much to protect the investment value of the property as to maximise profit.
 
I have a similar concern. I have a property and left it vacant for two years to re set rent. its in a very good area beside excellent public transport. A lovely area with private balconies overlooking large grounds and spacious.

I am in a rush to get a tenant before 1st March. Quite honestly It's been a disaster trying to find a tenant eventhough it's a few hundred euro cheaper per month than others advertised. I showed it to so many and so many applicants were unsuitable or when offered it declined as in other accommodation despite saying ready to move immediately. Its in good condition but slightly dated kitchen and bathroom.

I think I have a good prospective tenant. If I offer him €1,000 off first months rent only will it affect me in that could he turn around and query it going up for the subsquent months.Its in a rpz. I was thinking of drafting a standard lease and not mentioning discount at all but just accepting first months rent minus the €1,000 discount.

I have another prospective tenant, nurses on good salary didn't offer them a discount but found out two had e bikes from their landlord when I verified references which really frightened me in case they spontaneously went on fire or am I being too cautious.

To be honest I never thought it would be so difficult in finding tenants for such a well located area with high demand beside major employers.
 
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I used to give my tenants a card with a present of cash at Christmas. They knew they were getting this every year. I knew I was giving it. I never stated ever that it was a rent reduction or a rebate. Of course it was because because i was obligated to charge max rent possible for reporting purposes.
 
I told them I was giving them €1,000 off. I'm just afraid if I renege on this not because I'm greedy but because of perceived legal implications they won't move in on Friday before Laws change.

I would be taking the deposit and months rent less €1000 in cash so no record of deduction. The Lesse would not mention any €1,000 off so where's is the proof unless they looked at my bank statement as I would lodge the cash. The receipt for the deposit and months rent paid in cash would not state which was deposit and which was rent but total.

I was going to draft a letter prospective tenants addressed to me signed by them (not me) documenting the reduction of €1,000 so as I could produce it to Revenue if they queried €1,000 less rental income returned.

If I say I will give a gift card of this amount at Christmas they might not believe me, but then I'm explicitly giving a discount but not immediately.


I have other prospective tenants very eager to take without any discounts but two of them have e scooters and I'm afraid of fire hazard.
 
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Greenbook said:
Some landlords would give long standing tenants a small discount at Christmas for example. Are they in breach of the Residential Tenancies Act for not reporting that. How do you report it in any event?
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My sibling and I always gave a free week at Christmas. Just deducted it from rent received for revenue purposes. Would have thought this was pretty common. Was I supposed to report that to the RTB. Because then my monthly rent amount would be incorrect. You'd have to take yearly rent, subtract the week, and divide that by 12 - mad stuff.
 
Well if they ( tenants) decide to stay six years I found it alarming. At least I can get rid of them before that if they sign before March '26
I just can't believe by Fiat Government breached constutionally enshrined property rights in this manner. Will there be a constitunal challenge.

President Connolly would be the least inclined to refer a
the Bill under Artcle 26°
 
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