Substantial refurbishment...insights

Sasha144

I inherited an apartment that is currently being rented for around 50% below market rate as the rent has not been raised in years. The place has not been touched for 15 years and is in an awful state. I intended to issue 6 months notice to my tenants in the new year to vacate as I will need a month to completely redo it including, flooring, new kitchen, new bathroom and new heating system as well as a complete clear out of all furniture and painting all walls, doors, skirting and ceilings. I read in another thread that the Housing Minister is intending to bring in legislation soon on substantial refurbishments as people are using them as loopholes to evict. Does anyone know if he plans to remove the exemption or if he will merely define what 'substantial refurbishment' will entail.

If it is the former, am I better off issuing the tenant with their 6 months notice now before anything comes in? Feel a bit cruel doing it so close to Christmas but I'm afraid if I leave it, legislation could be brought in and I will have missed my chance. This tenant had been intending to leave a year ago as they have two school going children in a very small one bedroomed apartment but I assume the rent was too good to give up. I'd appreciate any advice.

amcalester

Issue the notice as soon as possible making sure you are fully compliant with the ins and outs of the regulations.

You may not have the option if you wait any longer.

BrokenArrows

Sasha144 wrote: »

I inherited an apartment that is currently being rented for around 50% below market rate as the rent has not been raised in years. The place has not been touched for 15 years and is in an awful state. I intended to issue 6 months notice to my tenants in the new year to vacate as I will need a month to completely redo it including, flooring, new kitchen, new bathroom and new heating system as well as a complete clear out of all furniture and painting all walls, doors, skirting and ceilings. I read in another thread that the Housing Minister is intending to bring in legislation soon on substantial refurbishments as people are using them as loopholes to evict. Does anyone know if he plans to remove the exemption or if he will merely define what 'substantial refurbishment' will entail.

If it is the former, am I better off issuing the tenant with their 6 months notice now before anything comes in? Feel a bit cruel doing it so close to Christmas but I'm afraid if I leave it, legislation could be brought in and I will have missed my chance. This tenant had been intending to leave a year ago as they have two school going children in a very small one bedroomed apartment but I assume the rent was too good to give up. I'd appreciate any advice.

You should issue the notice now regardless of the change in law.

You have no need to feel bad about it. 6 months is loads of time for them to deal with the issue. Its not like they need to move out before christmas or in the new year.

Johnororuke

Hi Sasha144,

Did you do the substantial refurbishment? I am in the ame senario.

Thanks John

Dav010

https://www.boards.ie/discussion/comment/119575635#Comment_119575635

Sasha hasn’t been on boards since Dec 2018.

dennyk

https://www.boards.ie/discussion/comment/119575635#Comment_119575635

Note that the regulations have been tightened up since this thread was posted, and chances are the works the original poster described would no longer meet the current requirements to terminate a tenancy. See this RTB page for the details. Basically the works in question would have to pose a threat to the health or safety of the occupants to such an extent that they must not proceed at all while the property is occupied, and the conditions which pose that threat must exist for at least three weeks. This must be attested to in writing by a registered engineer, architect, or surveyor.

Even if the works are found to be substantial enough for a termination, the law requires the property to be offered back to the original tenant immediately upon completion of the work. It is also very unlikely that the renovations the OP detailed would qualify for an RPZ exemption; that would generally require a structural change to the property, such as adding an extension or permanently changing the internal layout, and/or a significant improvement in the BER rating (and unless the current heating system is truly dire, simply replacing a boiler alone probably wouldn't cut it. As such, the RPZ restrictions would still apply to the rent that could be charged to the original tenant when they resume their tenancy (or to a new tenant, if the original tenant declines) and the rent could only be put up according to those restrictions (likely a couple of percent or so per year since the last rent review).

Johnororuke

There is 3 changes needed.

1. Up the Ber Rating. That’s fine that’s easy to do.
2. Disability act 2005 that’s fine house needs ramps. That’s fine.
3. Change the layout. What I am looking at is knocking down a wall and making it open plan. This is the only thing I am not certain on.

Claw Hammer

https://www.boards.ie/discussion/comment/119603357#Comment_119603357

Are you increasing the floor area or re-configuring?