setting a fair rent

[wheeler dealer]

I bought an apartment for 125k with sitting tenants who have no lease on property but they are living there with 2 years .Tenants are ok but they said they were only paying 500/month rent .What are my options to increase rent there seems to be no rtb agreement in place either.The tenants are both working fulltime so cant be that badly off either

 

[RedOnion]

You bought a property with sitting tenants without getting advice beforehand?

Is the property in an RPZ?

who have no lease on property

there seems to be no rtb agreement in place

Both absolutely irrelevant to the tenants rights.

 

[NoRegretsCoyote]

If they are living there and paying rent then they have full protections of the law regardless of whether a rental contract was ever signed or if anything was registered with the RTB.

Tenants are ok but they said they were only paying 500/month rent .

If it's outside an RPZ you can increase rent to market rates once it's been two years since last review or start of tenancy. If it's inside an RPZ you are limited to 2% pa again if it's been two years.

Tenants might be chancing their arm by claiming rent is only €500 a month but it's going to be difficult for you to prove otherwise. Perhaps your solicitor can approach vendor's solicitor to see if they'll provide evidence of what rent was being paid and when the tenancy de facto commenced.

Otherwise buying a property with a tenant in place without knowing what the rent was would charitably be called a brave decision.

 

[Knuttell]

At 125k for an apartment could be Longford and outside RPZ, if it is outside RPZ then you need to establish when last rent review (not from tenants as previous poster has alluded to) and if it ticks the boxes then jack it right up to market rate and count your lives.

 

[skrooge]

Notwithstanding the RPZ issue others have mentioned, a look at something like the daft rental report would give you an idea of rent levels and yields. €500 would appear low for all types of property (I've assumed you're in Ulster). How many bedrooms is it?

 

[Sconeandjam]

I bought an apartment for 125k with sitting tenants who have no lease on property but they are living there with 2 years .Tenants are ok but they said they were only paying 500/month rent .What are my options to increase rent there seems to be no rtb agreement in place either.The tenants are both working fulltime so cant be that badly off either

Something is not right here.
There are a list of things the seller must provide now.
The selling agent should have given you this information before purchase and your solicitor should have asked for this information.
We are selling a btl and both our solicitor and the auctioneer asked for copies of the last contract and any registration details on rtb. Go back to both.
Do not trust any tenant.

 

[RedOnion]

Something is not right here.
There are a list of things the seller must provide now.

Although the OP hasn't said it, it's pretty clear this was a property bought from receiver at auction, so none of the 'normal' rules apply.

There's a reason repossessed properties with tenants are sold at a big discount to market value.

 

[Brendan Burgess]

I wonder if you can check with the RTB if there is a lease in place? There probably isn't but it might be worth checking.

Brendan

 

[ClubMan]

At 125k for an apartment could be Longford and outside RPZ

Although the OP hasn't said it, it's pretty clear this was a property bought from receiver at auction

(I've assumed you're in Ulster).

There's an awful lot of speculative assumptions being made in this thread by contributors. Maybe the original poster can clarify matters to avoid this?

 

[RedOnion]

There's an awful lot of speculative assumptions being made in this thread by contributors. Maybe the original poster can clarify matters to avoid this?

Unless the OP is buying up a lot of property, or asking hypothetical questions, it's not a huge leap from a question asked 7 weeks earlier:

Thread 'Buying tenanted btl off receiver' https://www.askaboutmoney.com/threads/buying-tenanted-btl-off-receiver.229259/

I'd be showing off if I added the address of the apartment.

 

[AlbacoreA]

Who buys rental without knowing the market rate of property in the area. Makes no sense.

 

[wheeler dealer]

Unless the OP is buying up a lot of property, or asking hypothetical questions, it's not a huge leap from a question asked 7 weeks earlier:

Thread 'Buying tenanted btl off receiver' https://www.askaboutmoney.com/threads/buying-tenanted-btl-off-receiver.229259/

I'd be showing off if I added the address of the apartment.

Top marks there sherlock!!
Indeed its the same property just got contracts signed ,55k cheaper then next door property sold during summer but mine have the insitu tenants and bought at auction .It is less then 500 m from regional uni.in a south west county town I juist poped a letter to the tenants to let them know of change of ownership .There seems to be no previous rtb lease in place and not a rpz town .The ball is in the tenants court I will further update how i progress with the tenants

 

[RedOnion]

55k cheaper then next door property sold during summer but mine have the insitu tenants and bought at auction

It's a fair discount. You've bought a very expensive lottery ticket!

Best of luck with it.

 

[AlbacoreA]

You bring the rent up to the market rate. Because it's too hard to catch up if it becomes a rpz. Didn't think there were many places not in it. Depends what you're intentions are for it though.