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Notice period for rent increase

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  • 11-09-2015 8:38pm
    #1
    CiboC
    Registered Users Posts: 524 ✭✭✭


    So, my landlord has told me they want to have a conversation about increasing the rent.

    No issue with that, to be honest we have been paying well below market rate for a long time, we have not had an increase since we moved in 3 years ago and are well due an increase.

    My only questions is this - I know we are entitled to 28 days notice of an increase, but how does that work?

    We have not been formally notified of anything yet, does the 28 days kick in from the day of us agreeing to the increase? As in, he tells us tomorrow, we agree a few days later, then 28 days after that it is deemed to be in effect? The new rent does not come into effect from the day we agree it, even if he has given us a 'heads up' that it is on the cards (possibly) 28 days earlier?


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    #2
    salamanca22
    Registered Users Posts: 1,179 ✭✭✭salamanca22


    CiboC wrote: »
    So, my landlord has told me they want to have a conversation about increasing the rent.

    No issue with that, to be honest we have been paying well below market rate for a long time, we have not had an increase since we moved in 3 years ago and are well due an increase.

    My only questions is this - I know we are entitled to 28 days notice of an increase, but how does that work?

    We have not been formally notified of anything yet, does the 28 days kick in from the day of us agreeing to the increase? As in, he tells us tomorrow, we agree a few days later, then 28 days after that it is deemed to be in effect? The new rent does not come into effect from the day we agree it, even if he has given us a 'heads up' that it is on the cards (possibly) 28 days earlier?

    The rent increase will commence 28 days after official notice has been given of the increase. For the landlords best interest it is best to send it via registered post with correct wording or there could be problems enforcing the increase if a tenant does not want to pay it

    So to answer your question, if you feel a verbal agreement is fine then the increase will happen 28 days after you agree in person.


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    #3
    Pac2015
    Closed Accounts Posts: 186 ✭✭Pac2015


    By law your LL must give your a letter in writing 28 days before they wish the rise in rent to increase.
    If you have a verbal agreement and you feel happy with the rise then just pay the new amount on your next months rent.

    I think however its best to get it in writing as your LL can come along and try to raise the rent in another few months which is illegal as you can only do it every 12 months and it must be in line with the market rate.


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    #4
    km991148
    Registered Users Posts: 4,275 ✭✭✭km991148


    Pac2015 wrote: »
    .. and it must be in line with the market rate.

    This one always got me - other than a look around on daft etc, how is ave market rate determined? What reports (if any) can be used to justify this?


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    #5
    awec
    Administrators Posts: 53,845 Admin ✭✭✭✭✭awec


    km991148 wrote: »
    This one always got me - other than a look around on daft etc, how is ave market rate determined? What reports (if any) can be used to justify this?

    It's not really about reports as those reports may not be completely up to date. The reports also tend to talk about average rates in large areas as opposed to the market rates in a specific locality. For example they'd talk about the average rent in south Dublin city rather than the market rate of a 2 bedroom modern apartment in Ranelagh.

    Looking on the likes of daft is your best bet. Unless the majority of similar properties are significantly cheaper than your proposed new rent you are out of luck.


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    #6
    Pac2015
    Closed Accounts Posts: 186 ✭✭Pac2015


    km991148 wrote: »
    This one always got me - other than a look around on daft etc, how is ave market rate determined? What reports (if any) can be used to justify this?

    The best option would be too look around and see what similar properties in your area and areas close by are renting for and see if they are around the same price.
    I rent myself as my apt that I own is too small to live in for me now and I pay around 200.00 less then what other houses in the area are renting for why well the house is a kip looks like the 1980's came in and took over so my LL has not asked for a rent rise since May 2014 when she implented a 100 euro rise.

    My own apartment I rent for around 200 less then what I could rent it for why well because I have a great tenant and also it covers my costs on the apt and I don't make a profit.


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    #7
    steddyeddy
    Registered Users Posts: 27,564 ✭✭✭✭steddyeddy


    awec wrote: »
    It's not really about reports as those reports may not be completely up to date. The reports also tend to talk about average rates in large areas as opposed to the market rates in a specific locality. For example they'd talk about the average rent in south Dublin city rather than the market rate of a 2 bedroom modern apartment in Ranelagh.

    Looking on the likes of daft is your best bet. Unless the majority of similar properties are significantly cheaper than your proposed new rent you are out of luck.

    Tell me there's more to market forces than looking at ads some private landlords posted on Daft?


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    #8
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    steddyeddy wrote: »
    Tell me there's more to market forces than looking at ads some private landlords posted on Daft?

    Landlords posting advertisements on DAFT/Myhome.ie etc are the market though. A landlord must show that the proposed increase is in keeping with market rates. An alternate might be the landlord him (or her) self putting your property up on DAFT at or above the proposed rent they are suggesting they want to increase it to. If there are punters out there who bite at that price- then that is the new market rate.

    As that Roman slave Publilius Syrus put it- 'Everything is worth what its purchaser is willing to pay for it'. Its a truism.


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    #9
    steddyeddy
    Registered Users Posts: 27,564 ✭✭✭✭steddyeddy


    The_Conductor wrote: »
    Landlords posting advertisements on DAFT/Myhome.ie etc are the market though. A landlord must show that the proposed increase is in keeping with market rates. An alternate might be the landlord him (or her) self putting your property up on DAFT at or above the proposed rent they are suggesting they want to increase it to. If there are punters out there who bite at that price- then that is the new market rate.

    As that Roman slave Publilius Syrus put it- 'Everything is worth what its purchaser is willing to pay for it'. Its a truism.

    So it's similar to a cartel in other words.


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    #10
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    steddyeddy wrote: »
    So it's similar to a cartel in other words.

    No.
    A 'Cartel' implies the existence of a formal agreement between a group of producers or suppliers of a good or service, to regulate supply in an effort to regulate or manipulate price.

    No such agreement exists between landlords- thus its not a cartel.

    Government policy has constricted supply- not the action (or inaction) of landlords. Most landlords I know are actively trying to get out of the business- and are selling up- as they can't make a living from it- despite the high rents- given Ireland's taxation regime in the residential sector.

    In most cases > 50% of rent goes straight to the Revenue Commissioners.


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    #11
    awec
    Administrators Posts: 53,845 Admin ✭✭✭✭✭awec


    The system isn't perfect either though. For example some of the very large letting agencies can have undue influence on the market in a certain area. In my area I would guess that the overwhelming majority of properties are owned or let by one or two companies, who can decide to increase rents across the board and then just set a new market rate (because looking on daft will show you lots of property let out by the same company that has gone up in price too).


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    #12
    km991148
    Registered Users Posts: 4,275 ✭✭✭km991148


    awec wrote: »
    The system isn't perfect either though. For example some of the very large letting agencies can have undue influence on the market in a certain area. In my area I would guess that the overwhelming majority of properties are owned or let by one or two companies, who can decide to increase rents across the board and then just set a new market rate (because looking on daft will show you lots of property let out by the same company that has gone up in price too).

    ye - exactly - I have wondered about this before - if it were any other market it would be bordering on anti-competitive.

    Additionally - whos to say the rent advertised on Daft is the actual rent agreed. I see properties go up and then rounded down a day or two later..

    If there is a law stating that rents must be keeping with the average for property/area then it would be handy if there was a register of rents accessible to landlords/tenants so that everyone knows where they stand..


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