4% increase - Cork city

Sarah_m_87

Hi all,

I have been in the same rental accommodation in cork city for 3 years effective this coming February. This morning I have received a renewal notice of an increase of approx 20%. I have attempted to review the new legislation relating to the 4% increase and can't see any reason as to why it would not stand to our renewal.

What I'm looking for help on is the following:

1. Our last increase was 2 years ago - should this affect the 4% legislation in any way?

2. Our rental cost currently is slightly below the current market value - should this affect the 4% in any way?

I'd appreciate any input on this as I'm stressing out with the potential increase!

Thanks a mill in advance

goz83

If you're in a rent pressure zone and you've only now received a notice of an increase in excess of 4%, it is not likely valid. You might contact the relevant body to ask.

Sarah_m_87

goz83 wrote: »

If you're in a rent pressure zone and you've only now received a notice of an increase in excess of 4%, it is not likely valid. You might contact the relevant body to ask.

I was thinking the same. Going to give threshold a ring tomorrow to clarify the issue further. Appreciate the input! Thanks

jimmycrackcorm

The thing to remember is that there is nothing in the law preventing a landlord from ASKING for a more significant rent increase in the hope that their tenants aren't aware of the change.

Askthe EA

Sarah_m_87 wrote: »

Hi all,

I have been in the same rental accommodation in cork city for 3 years effective this coming February. This morning I have received a renewal notice of an increase of approx 20%. I have attempted to review the new legislation relating to the 4% increase and can't see any reason as to why it would not stand to our renewal.

What I'm looking for help on is the following:

1. Our last increase was 2 years ago - should this affect the 4% legislation in any way?

2. Our rental cost currently is slightly below the current market value - should this affect the 4% in any way?

I'd appreciate any input on this as I'm stressing out with the potential increase!

Thanks a mill in advance

Firstly, are you sure you are in Cork City and not Cork County? I know it sounds silly, but parts of the, in inverted commas, city are actually in Cork County Council to which the 4% thing doesn't apply.

If you are in Cork City Councils area, see below example;

A landlord has not reviewed the rent since 1 November 2014, over 24 months ago. The landlords rented dwelling is located in Dublin 2, an area which has been listed as a Rent Pressure Zone. The landlord plans on serving the rent review notice on 1 January 2017 by serving a minimum of 90 days notice of rent review indicating that the change will take effect from the 1 May 2017. In order to ascertain the new rent amount as permitted under the regulations the landlord inserts all the relevant information in to the formula.

• R = €1200, the current rent amount
• t = 30 months (1/11/14 to 1/05/2017)
• m = 24 months - the landlord has not reviewed the rent for a minimum of 24 months.

• 30/24 = 1.208 then
• x 0.04 = 0.48 then
• + 1 = 1.48 then
• x 1200 = 1260

1200 x (1 + 0.04 x 30/24) = €1260 is the new rent amount permitted

Askthe EA

Sorry, should have put this in as an explainer first...

Where a landlord is setting the rent in a Rent Pressure Zone the amount can not be greater than the amount determined by the below formula:
R x (1 + 0.04 x t/m)
o R = The amount of rent last set under a tenancy for the dwelling (the current rent amount)
o t = The number of months between the date the current rent came in to effect and the date the new rent amount will come in to effect.
o m = the number of months since your last rent review – you must enter 24 OR 12 o For tenancies that are already in existence a review is only permitted 24 months after the tenancy came in to existence or 24 months from the date the rent was last set.
o Once this first rent review has taken place, all reviews thereafter are permitted every 12 months. For subsequent rent reviews in relation to the property the permissible rent increase will be 4% per annum applied pro rata for the period since the rent was last increased.