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2 Year Freeze Vs 4%

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  • 10-04-2017 1:44pm
    #1
    noodler
    Registered Users Posts: 26,396 ✭✭✭✭


    Hey all,


    Lease is up in June (will only have been there a year).

    Does anyone know which rule takes precidence regarding rent increases?


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    #2
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    Your first rent review can only take place after 24 months if your tenancy started before enactment of the new law (which yours did). At that time, the max increase is 4% with 90 days notice.


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    #3
    noodler
    Registered Users Posts: 26,396 ✭✭✭✭noodler


    Michael D Not Higgins wrote: »
    Your first rent review can only take place after 24 months if your tenancy started before enactment of the new law (which yours did). At that time, the max increase is 4% with 90 days notice.

    Thanks - its already extortion relative to what I earn so couldn't even take 4%.

    A load off in one respect but better leep looking for somewhere cheaper anyway.


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    #4
    mickmac76
    Registered Users Posts: 400 ✭✭mickmac76


    Michael D Not Higgins wrote: »
    Your first rent review can only take place after 24 months if your tenancy started before enactment of the new law (which yours did). At that time, the max increase is 4% with 90 days notice.
    Am I right in thinking that the rules allow for a 4% increase per year and the OP may have an 8% increase next year.


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    #5
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    mickmac76 wrote: »
    Am I right in thinking that the rules allow for a 4% increase per year and the OP may have an 8% increase next year.

    No, the first review is 4% after 24 months. If the tenancy starts after the commencement of the new amendments, then it is 4% after 12 months.


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    #6
    Mrs OBumble
    Registered Users Posts: 25,959 ✭✭✭✭Mrs OBumble


    Michael D Not Higgins wrote: »
    No, the first review is 4% after 24 months. If the tenancy starts after the commencement of the new amendments, then it is 4% after 12 months.

    This got me curious, so ive been googling.

    Citizens informatipn says its per year. (We know they're sometimes wrong).

    A PDF on housing.ie says it per period but doesn't define the period.

    The formula in http://www.irishstatutebook.ie/eli/2016/act/17/enacted/en/print effectively says its 4% per two years when section 24C(1)(a) applies and per year otherwise.

    I cannot figure out what 24C (1)(a) refers to.

    Interestingly this formula allows for the fact that it will be more than two years since the last rent rise ... so its rent + (4% x allowableYears) ... and allowableYears is a real number not an integer, so it will be 2.25 in cases where the new rent starts two years and 90 days later due to the review not being issued until 2 years is up.


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    #7
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    Mrs OBumble wrote: »
    This got me curious, so ive been googling.

    Citizens informatipn says its per year. (We know they're sometimes wrong).

    A PDF on housing.ie says it per period but doesn't define the period.

    The formula in http://www.irishstatutebook.ie/eli/2016/act/17/enacted/en/print effectively says its 4% per two years when section 24C(1)(a) applies and per year otherwise.

    I cannot figure out what 24C (1)(a) refers to.

    Interestingly this formula allows for the fact that it will be more than two years since the last rent rise ... so its rent + (4% x allowableYears) ... and allowableYears is a real number not an integer, so it will be 2.25 in cases where the new rent starts two years and 90 days later due to the review not being issued until 2 years is up.

    Yes, if done properly, it's 4.5% increase after two years and 90 days notice. However, for an existing tenancy that had a review before the new amendments, you could be 24 months between the actual applicable rent and it would be 4% (not applicable to OP).

    24C 1 a is in the Planning...Act 2016. It sets out how the rent reviews work for tenancies which start before and after the new amendments. Basically, if the tenancy existed before the new amendments, the next rent review is at least 24 months after the last one (or 24 months from the start of the tenancy) and subsequent reviews are 12 month periods. Tenancies starting after the new amendments are applicable are allowed the first review 12 months after the start of the tenancy. The value of m in the calculation of the rent is 24 or 12 depending on which of these reviews it is.


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