The 6-year rent reset - can you actually get to market rent?

That was a woeful example linked.
I would disagree, I think it gave very good insight to the thought process.

Put another way to focus big picture:

Would we agree that Andriuska example shows a fully refurbished house in that situation could only have had a max rent of 850/month? As they put almost all weight on the signed leases.


obviously I'm on the side of landlords
Just to be clear, I want to be on the side of an accommodation provider. I'm here to make sure I'm not making a mistake selling places off.



If you or anyone else could put up a better one on 'market rents' that would be great.

Unfortunately not many examples at all where that need to determine market rent. Vast majority of rent review cases I've came across were determined invalid on procedural grounds (so they didn't get to market rate determination)
 
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Just to be clear, I want to be on the side of an accommodation provider. I'm here to make sure I'm not making a mistake selling places off.
Care to give details including figures on a new thread and let's give it a look and analysis. Just make it sufficiently vague so no-one can be identified.
 
Care to give details including figures on a new thread and let's give it a look and analysis. Just make it sufficiently vague so no-one can be identified.

Isn't the Andriuska case alone sufficient to tank an investment case?

This and Mardan show clearly that if you have to rely on the 6-year rent reset to get to market rent, it will be almost impossible.

Even if the dwelling in Andriuska had been fully refurbished, the Tribunal would not have allowed rent above €850 because the only fully refurbished same-estate comparator was at €850. That's despite overwhelming evidence that the wider market rate was €900–€1,100 (two independent auctioneers, eight DAFT comparators in other Mullingar estates, the landlord's three Westmeath comparators all pointing to that range).

So as far as I can see you only get Market rate on the initial letting. For the first 6 years you are capped at lower of inflation or 2%. Then at the 6 year reset there will be artificial ceilings used (e.g. same-street, same-estate comparators). From those artificial ceilings, an unquantified, back of the envelope discount due to wear and tear will be subtracted.

Take this example here done over a 5 year period. Accommodation provider doing February Rent Reviews could only increase rent by 7.6% over the 5 years, while inflation and wages increased by 24% over the same period. This example was done when the 2% was calculated properly (issue here) and annual inflation was measured over 12 months, not the current 10/11 months (issue here).

This is why the reset is so important, and the cases I'm highlighting show how it's almost impossible to achieve in practice.

As I mentioned before, the majority of other cases I've looked at failed due to procedural grounds, which again is another risk you need to deal with. Under the new regime you only get one go at it, if you don't reset at year six (as for example the date of service of the rent review notice to the tenant might not be the same day as service to the RTB (issues with serving notices here)), you need to wait until year 12. This new regime is much less forgiving for procedural mistakes.

Am I missing something here?
 
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For any given property profile (e.g. 3-bed semi-detached in Athlone):

The tribunal deciding "market" rents in January 2027 references the lower end of "market" rents from 2026
The tribunal deciding "market" rents in January 2028 references the lower end of "market" rents from 2027
The tribunal deciding "market" rents in January 2029 references the lower end of "market" rents from 2028
The tribunal deciding "market" rents in January 2030 references the lower end of "market" rents from 2029
The tribunal deciding "market" rents in January 2031 references the lower end of "market" rents from 2030
The tribunal deciding "market" rents in January 2032 references the lower end of "market" rents from 2031

In computing this is called a recursive loop. It keeps rents increases capped indefinitely.

The 6-year reset is therefore mostly moot.
 
In computing this is called a recursive loop. It keeps rents increases capped indefinitely.
That is the reason for the Rent Register.

If we were getting a genuine reset to market in return for the eviction bans, then Daft and/or an EAs opinion would be used.

Daft shows you the condition and location of comparable properties. The Register tells you very little.
 
In computing this is called a recursive loop. It keeps rents increases capped indefinitely.
That is the reason for the Rent Register.

If we were getting a genuine reset to market in return for the eviction bans, then Daft and/or an EAs opinion would be used.

Daft shows you the condition and location of comparable properties. The Register tells you very little.
 
Yet another example of how the heavy hand of the RTB is going to prevent accomodation providers getting to market rent.


TR0617-002415 — Irish Residential Properties REIT v Walsh (Ballsbridge, Dublin 4)


Accommodation provider:
IRES REIT is the largest accommodation provider in Ireland. Publicly listed, in-house valuation and legal teams, direct portfolio visibility across thousands of comparable dwellings. If IRES can't prepare for and defend market rent in front of the RTB, I don't know who could.


Dwelling and the increase:
A 4-bedroom unfurnished penthouse on Merrion Road, Ballsbridge. Tenancy started April 2012 at €2,100/month. In December 2016, IRES sought €3,000/month, eight days before Dublin's RPZ designation. Open-market test applied.

Outcome:
Tribunal cut it to €2,400. IRES sought a €900 uplift. They got €300. Two-thirds of the requested increase, gone.


How they got there:
IRES submitted three properly prepared comparators from similar Dublin areas. The Tribunal accepted them as "similar dwellings" then applied two unquantified downward adjustments:
  • The comparators were furnished, the dwelling unfurnished. No quantification, no reference to typical Dublin furnishing premiums, no methodology - just an unspecified downward pull on the comparator figure.
  • The dwelling allegedly had inferior transport links. Elm Park is on Merrion Road, walking distance to Sydney Parade DART with multiple bus routes. Treating Ballsbridge as transport-disadvantaged compared to Smithfield is implausible, but the Tribunal did so without demonstrating why.

The 4-bedroom penthouse premium - a scarce, larger, premium product type - was ignored entirely. The methodology applies downward adjustments freely. Upward adjustments for premium characteristics don't get a look in. Clearly asymmetric by design.

The Tribunal's "market rent" was a fraction of actual Ballsbridge rent inflation
Using the RTB's own published Ballsbridge rental data (CSO Table RIQ02), the average rent for 4+ bedroom properties in Ballsbridge grew from €2,371 in Q1 2012 to €3,365 in Q1 2017 - a 41.9% increase over five years.

Applied to the original €2,100 rent, that growth rate would have produced a 2017 figure of around €2,980 - essentially identical to the €3,000 IRES sought.
The Tribunal landed at €2,400 - a 14.3% increase over the same five years, less than one-third of what the RTB's own Ballsbridge data recorded for 4+ bedroom properties in the area.

This isn't a question of disputed comparators or DAFT advertisements. The RTB's own published data for the dwelling type and location showed rent inflation more than three times higher than what the Tribunal determined was "market rent."

Maintenance sideshow
The Tribunal also awarded the tenant €500 in damages for s.12(1)(b) breaches — unreplaced curtains (the maintenance team was sourcing a ladder tall enough for a penthouse window), some door handles needed replacement, and unanswered emails about a fire alarm. Minor administrative slippage, turned into damages. Meanwhile the unquantified rent adjustments that cost the accommodation provider €600/month got no equivalent scrutiny.

Were they prepared
This case is lighter on details than the others. However, it's worth noting here the ajudication rewarded IRES 2500/month and they appealed it to the tribunal for it being too low. So you can be absolutely sure they were very well prepared coming into the tribunal. I doubt anyone in the state could prepare better than IRES with their vast portfolio and broad and deep team of experts. I'm sure they in no way expected the Tribunal to award them even less (Tribunal awarded 2400/month)

What this means for the rest of us
If the largest accommodation provider in the State - with full professional support and direct visibility of thousands of comparable lettings - can be cut from €3,000 to €2,400 on a Ballsbridge penthouse, while the RTB's own rental data showed market rent for 4+ bedroom properties in the area had grown by 42% over the tenancy, what chance does an individual accommodation provider have?

Wrapping Up
This IRES case is from 2017. The methodology hasn't changed since. There's no reason to expect it will change for tenancies starting after 1 March 2026. The largest accommodation provider in the State couldn't get to market rent in 2017, even on the RTB's own data. The rest of us have no realistic prospect of getting there in 2032.
 
I think the lesson from @stormy's analysis is that if a tenant challenges a rent setting or a rent review, they are practically guaranteed to get a reduction.

Once that becomes known, they'll only have to threaten a challenge and the landlord will have to start negotiations.
 
I think the lesson from @stormy's analysis is that if a tenant challenges a rent setting or a rent review, they are practically guaranteed to get a reduction.

Once that becomes known, they'll only have to threaten a challenge and the landlord will have to start negotiations.
Even if you negotiate with the tenant the tenant can still go back whenever they like to get it reduced again. They will just say they felt railroaded into the first negotiation.
 
Even if you negotiate with the tenant the tenant can still go back whenever they like to get it reduced again.
Exactly, and due to the embedded eviction ban you can't exit this cycle of reductions.

Likewise if you try to sell with the tenant in situ, any potential purchaser with a brain cell with insist on seeing the rental history, see what is happening and run a mile.

This is no business for anybody to be in.
 
This IRES case is from 2017
Could you please put up a link as I cannot find it. I have found two other cases under the names listed, also same location so I think it's the same two parties and arrears were 38K !!
 
TR0522-005471 — Crowley v O'Neill (Blackrock, Cork, non-RPZ at the time)

Another one for the pile, and this one shows what happens when a rent review is tested years after the event. It also answers: how long is a rent setting open to attack?

Link: https://rtb.ie/wp-content/uploads/2025/05/TR0522-005471-DR0122-75128_Report.pdf

Background
Tenancy commenced May 2012 at €800. Reviewed to €850 in January 2014 (unchallenged). Reviewed again on 1 January 2016 to €1,150, effective April 2016 — a 35% jump, but in Cork in 2016 and before RPZs reached it. The tenant paid the new rent for over a year without dispute, then started paying less. By 2021 the accommodation provider had served an arrears notice claiming €12,250, by August 2022 he was claiming €22,100, and he brought the case to the RTB himself.

The evidence on market rent
One letter from a local estate agent, dated May 2022, saying that €1,150 in January 2016 had been "a realistic rental valuation at that time."

That's it. And the Tribunal, six and a half years after the review, held it wasn't enough.

How the Tribunal reasoned
The letter was "a form of retrospective rent review." If the accommodation provider wanted to review validly, "he should have ascertained from the estate agent what the market rent was when he decided to review the rent back on 1st January 2016." No evidence of consulting anyone at the time. No comparables of "similar size, type and character… in a comparable area" as s.24 requires. A near-30% increase with nothing behind it.

And this is the part worth reading twice. The Tribunal accepted the tenant had been "happy to pay" the increase, that this was "arguably… a willing tenant prepared to pay the increase and a willing landlord prepared to accept the higher rent, as provided for in S.24" — and held that this did not matter, because the comparables limb of s.24 wasn't met. A rent the tenant agreed and paid for years was still not market rent, because the paperwork behind it didn't exist on the day.

The consequence
Review invalid. Rent reset to €850 from 2014. The tenant had overpaid €5,150 across six years. The tenant had made no claim for it, had made no counterclaim, and didn't attend the hearing. The Tribunal held it was "obliged to deal with the matter" anyway and ordered the refund.

The accommodation provider had appealed an adjudication that awarded him €1,245. The Tribunal ordered him to pay the tenant €750. From €22,100 claimed to a payment out — and the rent on a still-running tenancy cut permanently from €1,150 to €850.

What this means for the 6-year reset - Three things

The evidence must exist on the day.
Not a valuation obtained when the dispute arises; not "the tenant was happy to pay it"; not the rent register consulted after the fact. The Tribunal wants proof that on the date of the notice, the accommodation provider had regard to comparable lettings and set the figure from them. Under the new regime that means the register printout, dated, filed with the notice — and if Andriuska and Mardan are any guide, a dwelling-specific valuation on top of it. Anything assembled later is "retrospective" and gets no weight.

A review is never safe. This one was six years old, uncontested at the time, and paid for over a year. It came apart because the accommodation provider relied on it in an arrears claim, which put the rent in issue. Every rent setting you make in 2026 is a rent setting you may be defending in 2032 — and the tenant doesn't have to raise it; the Tribunal will do it for them as soon as the rent is before it for any reason.

The downside isn't the increase you don't get. It's the refund. Andriuska and Elm Park were about accommodation providers getting less than they asked for. This is about getting less than they already had, plus six years of back-rent, plus the appeal fee, on a case they thought they were winning. And of course there will be no tax refund on income the tribunal said the accommodation provider was not entitled to. The 6-year reset is being sold as an upside. It's also a fresh liability: a rent that can be unwound at any point in the following decades if the evidence behind it turns out to be thin.
 
The 6-year reset is being sold as an upside. It's also a fresh liability: a rent that can be unwound at any point in the following decades if the evidence behind it turns out to be thin.
Excellent sleuthing in the Tribunal Reports as always @stormy It demonstrates what most of us suspected all along, the bias of the Tribunal against landlords.

That said, I wouldn't be worried about the 6 year rent reset. If landlords are entitled to a meaningful rent increase in 2032, it simply won't happen. It will be 'temporarily' suspended or there will be a rent cap. It is hardwired into the system at this stage that private rents cannot meaningfully rise even when the increases are largely inflationary.

At the rate things are going, in two years time it may be yet another criminal offence to raise the rent beyond 2% when you start a new lease ie. back to square one with the RPZs.
 
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