Should I reduce the rent?

...but a lease in which the tenants feel free to seek reductions in rent at will is pretty useless. Reviewing the rent downwards in a renters market is natural and correct but only when the lease is up for renewal, not anytime the tenant feels like it. If the landlord suggested a mid-lease increase in a landlord's market they'd be told where to go.
 
SPC100 said:
I'd compromise. Reduce the rent slightly, but get them to sign a new longer lease. you are both gaining something.
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But what is the landlord really gaining? A lease is really only there to protect tenants, at the end of the day if the tenant ever decides to simply up and leave, all they have to do is stop paying rent.
 
Landlords are prohibited by the Residential Tenancies Act 2004 from charging above the market rent for a tenancy. As asking rents have fallen by approximately 11% in the past year I don't think it's unreasonable for tenants to ensure that the rent they are paying is the going rate.
 
Duplex said:
Landlords are prohibited by the Residential Tenancies Act 2004 from charging above the market rent for a tenancy. As asking rents have fallen by approximately 11% in the past year I don't think it's unreasonable for tenants to ensure that the rent they are paying is the going rate.
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One could argue that the market rent is what you can get for a property and there are many variables to be considered i.e whats included with rent, location, fit out of property etc.
 
I suggest leaving the rent as agreed under the lease as is.

But defer the payment of 10% of the rent until completion of the lease.

if they continue to pay promptly and act as good tenants, you won't pursue the deferred rent.

This means that if they break the lease, then you will be able to go after them for the full amount.

In my business I have given people discounts. I have had to subsequently sue them but could only sue them for the discounted amount. now I only give settlement discounts.

So you could say that the rent remains at €1,000 per month. If they pay on time, they can pay €900.

Brendan
 
MrMan said:
It basically is what I said no?
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The reviewed rent under the Act is established by reference to comparable lettings evidence. If 'what you can get for it' exceeds the market rent as defined in the Act then there's a problem.
 
Duplex said:
The reviewed rent under the Act is established by reference to comparable lettings evidence. If 'what you can get for it' exceeds the market rent as defined in the Act then there's a problem.
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Yes but the rent already in existence is in the lease so has to be paid until the end of the lease and market rent as defined in the act isn't black and white and i would bet that both sides could provide comparables to back their claim to a fair market rent. I know what your saying is right in theory but in practice it's a different ballgame.
 
MrMan said:
Yes but the rent already in existence is in the lease so has to be paid until the end of the lease and market rent as defined in the act isn't black and white and i would bet that both sides could provide comparables to back their claim to a fair market rent. I know what your saying is right in theory but in practice it's a different ballgame.
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If you can provide indisputable, verifiable evidence that a previously agreed passing rent is in line with current market rents then all is well. However I believe that residential rents are falling, as does the CSO and the Daft.ie survey. Tenants should be aware that they are protected by the Act with regard to the rent they pay and they should verify that the aren't paying a rent above the market rent.
 
Duplex said:
If you can provide indisputable, verifiable evidence that a previously agreed passing rent is in line with current market rents then all is well. However I believe that residential rents are falling, as does the CSO and the Daft.ie survey. Tenants should be aware that they are protected by the Act with regard to the rent they pay and they should verify that the aren't paying a rent above the market rent.
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They have come back in some areas and are likely to come back some more but the way things are in Irish property circles it is easy enough to find a rental price to back up your claims. Tenants have more than enough rights as it stands.
 
Duplex said:
If you can provide indisputable, verifiable evidence that a previously agreed passing rent is in line with current market rents then all is well. However I believe that residential rents are falling, as does the CSO and the Daft.ie survey. Tenants should be aware that they are protected by the Act with regard to the rent they pay and they should verify that the aren't paying a rent above the market rent.
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Does this mean that every month the landlord should be reducing the rent? Thats unworkable. If you sign a contract/lease you should be bound by the conditions of it, for the term. fine if you want to renegotiate say after a year, or 6 months. But not renegotiate every month.
 
aircobra19 said:
Does this mean that every month the landlord should be reducing the rent? Thats unworkable. If you sign a contract/lease you should be bound by the conditions of it, for the term. fine if you want to renegotiate say after a year, or 6 months. But not renegotiate every month.
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Part3 section 20 (1) states that the rent may be reviewed by either party once every 12 months.
 
Duplex said:
If you can provide indisputable, verifiable evidence that a previously agreed passing rent is in line with current market rents then all is well. However I believe that residential rents are falling, as does the CSO and the Daft.ie survey. Tenants should be aware that they are protected by the Act with regard to the rent they pay and they should verify that the aren't paying a rent above the market rent.
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But doesn't this mean that as soon as you agree a rent, and the market is failing. Then from that point on the tenant will be paying above the market rate.
 
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