How 4& Rent Increase Formula will work here?

sabinalee

Hi,

Can anyone simply advisie here?

After 10 years of renting from same landlord we will move to our own house in August.

Our family members are interested about taking over the house from our landlord.

Last November 2016 our landlord increased rent from 850 to 1200.
3 bed house in Celbridge.

Landlord is interested to let the house to my family but he will only speak about new terms after he redecorate the house?

What they can expect from him?
Can he increase rent even up to 4% straight or only in 2019, 3 years after last increase?

Thank you,
Sab

Askthe EA

*Edit* posted too quickly
**Second Edit** I have fat fingers!

My understanding is that, as this is a new tenancy he is entitled to set the new rent in line with RPZ guidelines.

He can certainly increase the rent to €1232

https://www.rtb.ie/rent-pressure-zones/rpz-calculator

Fian

All the below assumes you are in a RPZ, which Celbridge appears to be.

If he substantially renovates he can increase rent to market rent.

If not he is limited to a (4*9/12)% increase = a 3% increase. this is on the basis of 9 months between when your €1,200 rent was set in November and the fixing of a new rent in August.

If you leave he is not prevented from increasing for any period of time.

So without substantial renovation the maximum rent which can be imposed in August is €1236.


He may not ultimately want to rent to your relatives if they start off by pointing out the legal restrictions on rent increases.

Edit: Mine crossed with post above. depending on specific date in month it could either be 8 or 9 calendar months between the increases - so it will be either €1236 or €1232 it can increase to.

karenalot

As Celbridge is in a Rent Pressure Zone yes your landlord your landlord can increase for a new tenancy but only slightly at roughly €32 extra per month based on a €1200 lease.

If you use this calculator you can find out the exact figure - https://www.rtb.ie/rent-pressure-zones/rpz-calculator

However if your landlord is doing substantial renovations to the property he can let the property out at the market rate after the works have been completed. I know most 3 beds in Celbridge are going for €1500 - €1600. There is a lot of uncertainty as to what substantial renovations actually include but its safe to say a lick of paint and cleaning the carpets won't justify market rate.

Askthe EA

Fian wrote: »

All the below assumes you are in a RPZ, which Celbridge appears to be.


He may not ultimately want to rent to your relatives if they start off by pointing out the legal restrictions on rent increases.

I wouldnt worry about that, he'd be a bit silly to breech the terms of the RPZ when he knows that the ex tenants are watching.....

Askthe EA

karenalot wrote: »

There is a lot of uncertainty as to what substantial renovations actually include but its safe to say a lick of paint and cleaning the carpets won't just market rate.

Isnt that the truth?? Mad! It will take a case to set a baseline. I know two of the major REITs have sought a legal statement from the RTB on the matter so will be interesting what comes out of that.

sabinalee

Lucky Landlord did not do anything special in the house for that 10 years period. Not even changed single mattress only replaced washing machine as got broke. But ok. We naivly survived.

Now, looks like he is acting smart. He said he will take one month break from renting to redeceorate the house and only then he will speak to my family members about new terms....

I bet he is planing yo get more than 1232...oh Im sure now.

Other query I have for yous then...
We do not know when exactly in August we will get a keys to the new house, and we will pay normal full rent for that month.
Landlord is planing his time off and decided to come in August to start to do some work in the house....
How to tell him nicely that we might be still in the house and we paid for that month...so maybe September would be good to start...?

Askthe EA

sabinalee wrote: »

Other query I have for yous then...
We do not know when exactly in August we will get a keys to the new house, and we will pay normal full rent for that month.
Landlord is planing his time off and decided to come in August to start to do some work in the house....
How to tell him nicely that we might be still in the house and we paid for that month...so maybe September would be good to start...?

Have you given him notice yet? If not just make your notice up until your Sept rent.

You want to leave an overlap to move homes in comfort anyway surely?

sabinalee

Askthe EA wrote: »

Have you given him notice yet? If not just make your notice up until your Sept rent.

You want to leave an overlap to move homes in comfort anyway surely?

Yes, told him in March we look for a house, he said take as much time we need.
Yesterday I emailed him that we signed contract on new purchase and we will pay till the end of August only.

karenalot

sabinalee wrote: »

Lucky Landlord did not do anything special in the house for that 10 years period. Not even changed single mattress only replaced washing machine as got broke. But ok. We naivly survived.

The flip side is that you saved thousands in rent each year due to being well below the market rate. I wouldn't consider your landlord that lucky at all.

Askthe EA

sabinalee wrote: »

Yes, told him in March we look for a house, he said take as much time we need.
Yesterday I emailed him that we signed contract on new purchase and we will pay till the end of August only.

Ah, if its only yesterday just tell him that it will be September and that you made an error.

sabinalee

karenalot wrote: »

The flip side is that you saved thousands in rent each year due to being well below the market rate. I wouldn't consider your landlord that lucky at all.

nope. We paid 1200 for 6 years then 850 for 3 and again 1200 till present. He is lucky.

Askthe EA

sabinalee wrote: »

nope. We paid 1200 for 6 years then 850 for 3 and again 1200 till present. He is lucky.

Why did the rent drop to 850?

Diemos

I'm trying to understand your case.

You were ideal tenants, paid every month for 10 years and your landlord had very little to do, just replace a white good. In response your rent was kept below market rate by your landlord in appreciation for the trust your earned as a good tenant.

Now that you are leaving you want your relative to get the house but on the same sweet deal that you had? And you will fight the landlord if this is not the case?

The landlord owes you nothing, you had a sweet deal, it suited you both, say thanks and walk away. If your relative would like the place then it's between them and the landlord.

This law was brought in to protect tenants from greedy landlords, not as a slap in the face for a landlord who gave a previous tenant a good deal.

Diemos

Askthe EA wrote: »

Why did the rent drop to 850?

Falling market. then a rising market brought it back up.

sabinalee

Diemos wrote: »

Falling market. then a rising market brought it back up.

exactly

sabinalee

We do not want anything from landlord. We are good he is good. Thank you and good bye.
I only wanted to know is he aloud to rent increase to new tenants and how much.

Thank you for all your replies. Really appreciatedo your opinions.

Askthe EA

Diemos wrote: »

Falling market. then a rising market brought it back up.

Exactly. Sounds like a decent landlord.