Very low rent in Rent Pressure Zone

Daithi7 said:
now the government are deliberately forcing landlords to only put up their rents, a full 7% below inflation in 2022. That's just plain wrong imho.
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this will have very serious consequences in times of high inflation. Landlords will not resolve any issues, problems etc going forward when the cost of everything is increasing whilst they are constrained in terms of income.
 
PebbleBeach2020 said:
a landlord with a property at say 1200 euro a month but market rate is 2000 euro a month will be tied into 2% annual increases at the most for the next few years at a minimum, possibly indefinitely. By leaving a property empty for 2 years, they forego €28,800 in rental income. It would take them three years approximately to make up the difference in income. Therefore, over 5 years, they would be in a far better position in terms of rental income as well as not having their property devalued potentially if they were to sell it, as a result of having rent far lower than market rent.
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I think this will make sense in for a lot of tenancies when tenants give notice.

Landlords could use the time to carry out renovations and repairs.

It wouldn't be hard to find a friend or family member to occupy it on a caretaker basis in the current market either.
 
NoRegretsCoyote said:
I think this will make sense in for a lot of tenancies when tenants give notice.

Landlords could use the time to carry out renovations and repairs.

It wouldn't be hard to find a friend or family member to occupy it on a caretaker basis in the current market either.
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a) quite a few landlords already do this - 2 years goes by quite fast
b) another option which 2 of the 15 landlords here have done is allow an adult family member to live there while saving for their own mortgage
c) you can always sell (but involves giving notice), no problem selling in Swords right now & buyers accept that most sales are going to be ex rentals

Lots of things you can do as a landlord. But there isn't a lot the tenant can do except pay their rent, unless they've been busy squirrelling away the differences in savings for years and can afford to buy themselves.
 
Sconeandjam said:
This is correct. Before you could increase by 4% but that was changed last year. Obrien brought this in very quickly.

OP there is a formula on the RTB website and you have to give 90days notice of the increase.
You have to inform RTB of changes in rent and if your tenant has left. You have to give a copy of the notice to leave to RTB a month after the leave date. Make sure you dot your eyes and dot your tee's.

Be very careful with your plans. In order to bring up to market rent you either take it off the market for 2 years and then let. Do short term letting in the mean time. If you chance increasing the rent and the current tenant finds our (previous tenant arrives at the door) you will have to pay back the difference and could be given a fine.

If your tenants are coming to the end of a 4 or 6year cycle you can I think can still give notice that you will not be renewing the lease for a further part 4.
citizens information
"Preventing a further Part 4 tenancy

If your landlord wants to stop a further Part 4 tenancy from coming into existence, they can serve a notice during the original Part 4 tenancy, with the notice period expiring on or after the end of the tenancy. A notice served in this way should provide a reason for termination. The reason does not need to be one of the valid grounds for terminating a Part 4 tenancy."
You have a template on RTB site but make sure you tell your tenant you are not renewing the tenancy and give them the notice period. I was told to fill the forms in before the end of the cycle and the give the 220days or what ever days notice they are due in notice.
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Is the previous tenant arriving at the door the only way the new tenant would find out the old rent?
Would they be able to check it up with rtb?
Do rtb communicate with tenants to let them know the rent you register the property at?
 
Presumably you have already provided RTB with details of the previous rent, when you update the new tenancy with a rent that exceeds the 2 % then they will issue you a warning letter or something similar.....(guessing)
 
Do RTB and revenue ever talk to each other? if a rent is entered in on RTB as 1600 but there is only actually 1300 being received (and tax paid on) would anyone ever query this? It's basically being completely tax compliant but the landlord covering themselves in case the tenant moves out and they can now raise the rent to market rate and dodging the RPZ rules.
 
Shandon64 said:
Do RTB and revenue ever talk to each other? if a rent is entered in on RTB as 1600 but there is only actually 1300 being received (and tax paid on) would anyone ever query this? It's basically being completely tax compliant but the landlord covering themselves in case the tenant moves out and they can now raise the rent to market rate and dodging the RPZ rules.
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Did the same thing. Nothing wrong with it. You're tax compliant, and charging less than the contract lodged with the RTB says, which also has nothing wrong with it.
 
The low rent will only effect the sale price of a house if sold to another LL. More likely it will sell best price to owner occupier.

You could also sell it then buy another that you can set the higher rent. You have the costs to sell/buy but you gain back a year or more of rent that you would lose if empty.

Probably the scenario that makes the least sense is to leave it rented at the low rent. People should wonder at Govt policies that have created that situation.
 
My guess (and it's only a guess) is that Revenue use RTB data in a binary way. So If there is an RTB tenancy registered to a landlord with no declared rental income Revenue might follow it up.

The RTB data quality is far too poor I suspect for any degree of precision in the matching of rental amount and tax paid.
 
I was contacted by revenue about a property stuck on a low rent in a RPZ. They were suspicious because the rent was so low.
 
Thanks everyone for the replies. I finally registered with RTB and it turns out I hadn't registered since 2018. So they are now charging me 470 euro including late fees :(. I paid the current fee due which was 40 plus 70 late fees but I skipped paying the other ones for previous years. Was there not some amnesty for this? If not will the late fees for these keep going up even though I am registerd for the current period?
 
Shandon64 said:
Is the previous tenant arriving at the door the only way the new tenant would find out the old rent?
Would they be able to check it up with rtb?
Do rtb communicate with tenants to let them know the rent you register the property at?
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Do you not have to give a letter to your tenant telling them the last tenants rent?
 
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