Excessive Rent Increase-Advice on what to do.

md323

Hi, just looking for some advice on what my first step should be on a rent increase.
I have been renting privately in the house I am living in now since 09/2011 with my wife and 3 children. Have never had any problems with the letting agency/landlord.
We were due a rent review which we expected an increase but they are looking for €200 extra a month.
We cannot afford to pay it.
What should my first step be? Approach the letting agency/landlord or the PTB?
Hope someone has some advice.
Thanks in advance.

coffee_cake

They can only increase by 4% under the latest rules IIRC
You could point this out to them and go straight to ptrb

dudara

OP - where are you located?

Stheno

bluewolf wrote: »

They can only increase by 4% under the latest rules IIRC
You could point this out to them and go straight to ptrb

Thats only in pressure zones.

Where are you living op?

md323

Stheno wrote: »

Thats only in pressure zones.

Where are you living op?

In county limerick, sorry should have said.
Also we got notification of the increase at the end of November, first rent with the increase due the first of February.

amcalester

md323 wrote: »

In county limerick, sorry should have said.
Also we got notification of the increase at the end of November, first rent with the increase due the first of February.

Have you looked on daft to see what similar properties are renting for in the area?

When was your last rent review?

pilly

It's a tough one if your not in the pressure zone. I know it's a lot of money but it's not as bad as some I've heard of. Sometimes trying to bargain with the LL direct might work? If they're happy with you as a tenant and think you might go elsewhere then they might change their minds or meet you half way at €100?

Stheno

md323 wrote: »

In county limerick, sorry should have said.
Also we got notification of the increase at the end of November, first rent with the increase due the first of February.

Is the increased rent similar to rents for similar houses in your area?

md323

amcalester wrote: »

Have you looked on daft to see what similar properties are renting for in the area?

When was your last rent review?

Last rent review was 24 months so the landlord is entitled to increase it.
As I said, I understand an increase was justified, it's the fact it is so big, no way can we afford it.
Similar properties in my area vary. We are paying under the market rate at the moment, but with the increase we would be paying over the market rate.

dudara

md323 wrote: »

In county limerick, sorry should have said.
Also we got notification of the increase at the end of November, first rent with the increase due the first of February.

You are supposed to get 90 days notice, so notice given end of November would mean commencement approx start of March. This means that this rent increase notice is invalid.

The big question though is if you want to annoy the landlord, or perhaps try to negotiate with them?

Michael D Not Higgins

md323 wrote: »

Last rent review was 24 months so the landlord is entitled to increase it.
As I said, I understand an increase was justified, it's the fact it is so big, no way can we afford it.
Similar properties in my area vary. We are paying under the market rate at the moment, but with the increase we would be paying over the market rate.

Speak to your landlord. Let them know you can't afford it and give a counter offer. Can you afford 100 extra? If they value you as tenants, it is likely worth their while giving you a discount.

md323

Michael D Not Higgins wrote: »

Speak to your landlord. Let them know you can't afford it and give a counter offer. Can you afford 100 extra? If they value you as tenants, it is likely worth their while giving you a discount.

That's what I was thinking of doing, €100 extra would be affordable.
Reason I posted was because I was wondering should I involve the PTB or just go direct to the landlord?

md323

dudara wrote: »

You are supposed to get 90 days notice, so notice given end of November would mean commencement approx start of March. This means that this rent increase notice is invalid.

The big question though is if you want to annoy the landlord, or perhaps try to negotiate with them?

Sorry, got notification end of October.
Don't want to annoy the landlord.
Never had any trouble before with them.
Have gone years with no contact between us before.

Michael D Not Higgins

md323 wrote: »

That's what I was thinking of doing, €100 extra would be affordable.
Reason I posted was because I was wondering should I involve the PTB or just go direct to the landlord?

It's always better to solve these things without the RTB first. If the landlord won't budge, your only recourse is to dispute it on being above market rate. However, from your previous posts it doesn't appear to be above market rate so your only option then would be to move.

pilly

md323 wrote: »

Sorry, got notification end of October.
Don't want to annoy the landlord.
Never had any trouble before with them.
Have gone years with no contact between us before.

Yeah, definitely try negotiate then, what have to got to lose by asking? I don't think a good LL would risk losing a good tenant for €100 a month.

amcalester

md323 wrote: »

Sorry, got notification end of October.
Don't want to annoy the landlord.
Never had any trouble before with them.
Have gone years with no contact between us before.

Talk to the landlord and make a counter offer and highlight that you are low maintenance tenants.

But bear in mind that if you did move the landlord could probably re-let quickly at market rate.

Has the house been redecorated at all since you moved in? If not, then it could be worth mentioning this as a reason to justify the lower rent. Ths would also be an extra hassle if the landlord was to re-let.

76544567

This is going to happen the vast majority of tenants outside the designated pressure zones now.
All rents are going to end up going g up to full market rate because if the new rules.
In the pressure zones landlords who have been good to their tenants with below market rents have been hung out to dry and punished unfairly for being good landlords, while anyone charging as high as they could is fine.
So now, before areas are designated pressure zones it is simply prudent for all landlords to increase rents to the max they can get at every opportunity.

pilly

76544567 wrote: »

This is going to happen the vast majority of tenants outside the designated pressure zones now.
All rents are going to end up going g up to full market rate because if the new rules.
In the pressure zones landlords who have been good to their tenants with below market rents have been hung out to dry and punished unfairly for being good landlords, while anyone charging as high as they could is fine.
So now, before areas are designated pressure zones it is simply prudent for all landlords to increase rents to the max they can get at every opportunity.

Definitely going to be a side effect alright.

pilly

pilly wrote: »

Yeah, definitely try negotiate then, what have to got to lose by asking? I don't think a good LL would risk losing a good tenant for €100 a month.

I think the days of discounts on market rate are gone. A LL would be very foolish to be renting at below market rate if they are in a position to increase the rent to the max as the rent controls could quickly expand and you could be stuck with 4% increases like those in the current pressure zone.

pilly

Eliza Some Thanks wrote: »

I think the days of discounts on market rate are gone. A LL would be very foolish to be renting at below market rate if they are in a position to increase the rent to the max as the rent controls could quickly expand and you could be stuck with 4% increases like those in the current pressure zone.

I see where you're coming from but as a LL I would rather be a bit below market rate and have a tenant I never heard from and I never had to chase for the rent than risk a nightmare tenant.

md323

pilly wrote: »

I see where you're coming from but as a LL I would rather be a bit below market rate and have a tenant I never heard from and I never had to chase for the rent than risk a nightmare tenant.

I have contacted my letting agent and told him my position with regards not being able to afford the increase, but have stated I could meet them halfway and pay an extra €100 per month.
Waiting to hear back.
If they are stubborn and won't negotiate I am strongly thinking of becoming a problematic tenant, I don't want to go down this road but I might. When I say problematic, I mean contacting them about every niggley thing.

John_Rambo

pilly wrote: »

I see where you're coming from but as a LL I would rather be a bit below market rate and have a tenant I never heard from and I never had to chase for the rent than risk a nightmare tenant.

Exact same here. It's a no brainer. The rent was a bit below the going rate, but I never heard from them, they looked after the house, carried out repairs, painted the walls etc... Hammering your tenants for every cent you can get sometimes doesn't make sense.

The_Conductor

John_Rambo wrote: »

Exact same here. It's a no brainer. The rent was a bit below the going rate, but I never heard from them, they looked after the house, carried out repairs, painted the walls etc... Hammering your tenants for every cent you can get sometimes doesn't make sense.

The issue is when they do leave- the new tenants are entitled to the favourable terms you gave the old tenants- in pressure zones. It looks increasingly likely that Galway, Limerick, Waterford and a few other places- are going to be added to the list of 'pressure zones' along with all counties immediately surrounding Dublin.

I.e. if a landlord treats their current tenants favourably- because they've been good tenants- they do not get to reset the clock once new tenants move in...........

Fkall

My approach is to raise the rent to current market rates - and allow the tenant to pay 50% of the increase for 12 months.

adam14

The_Conductor wrote:

The issue is when they do leave- the new tenants are entitled to the favourable terms you gave the old tenants- in pressure zones. It looks increasingly likely that Galway, Limerick, Waterford and a few other places- are going to be added to the list of 'pressure zones' along with all counties immediately surrounding Dublin.

How do the new tenants find out how much the old tenants were paying?

Fkall

Landlord is obliged to tell them

davo10

Fkall wrote: »

Landlord is obliged to tell them

I thought new rules applied to rent increases on existing tenancies in pressure zones, I didn't know it applied to rentals, I thought a LL could advertise for new tenants in a vacant property at whatever rate they wanted. Could you post a link to what you are saying above

Edit: I found in on RTB, that is mad, the government is interfering in what a LL can advertise a new rental rate at. Who would buy a rental property now in these zones?

http://www.rtb.ie/search-results/news/article/2016/12/23/rental-predictability-measures-introduced-24th-dec-2016

athtrasna

OP is there a reason you didn't do anything about this when you got the notice months ago? You would have been in a much stronger position pre the recent legislation.

TheChizler

Fkall wrote: »

My approach is to raise the rent to current market rates - and allow the tenant to pay 50% of the increase for 12 months.

And what if the RTB find out? You'don't potentially be stuck at the lower rate.

coffee_cake

davo10 wrote: »

I thought new rules applied to rent increases on existing tenancies in pressure zones, I didn't know it applied to rentals, I thought a LL could advertise for new tenants in a vacant property at whatever rate they wanted. Could you post a link to what you are saying above

Edit: I found in on RTB, that is mad, the government is interfering in what a LL can advertise a new rental rate at. Who would buy a rental property now in these zones?

http://www.rtb.ie/search-results/news/article/2016/12/23/rental-predictability-measures-introduced-24th-dec-2016

I had no idea about that, that IS mad
I was thinking the other day though if the max was 4% the LLs would likely just want to get rid of existing tenants and re advertise at higher rates if possible so I suppose that is to counter it

md323

athtrasna wrote: »

OP is there a reason you didn't do anything about this when you got the notice months ago? You would have been in a much stronger position pre the recent legislation.

I know I should have done something, pure laziness on my part, always put things on the long finger.
Can I ask how would I have been in a much stronger position?