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Rent pressure zones

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  • 24-01-2018 2:02pm
    #1
    Moonbeam
    Moderators, Education Moderators, Society & Culture Moderators Posts: 18,953 Mod ✭✭✭✭


    I had read previously that if you were renting out a house even in a rent pressure zone,if the rent was below market average that you could up it to market average then the 4% rule applies.
    I rang the PRTB and they said even if the rent is below market average the 4% rule applies.
    The house in question is not mine and the tenants are great so the rent has never been raised but on daft the same house is renting for 180% of the amount that friend is charging.
    This seems a it unfair on landlords ..

    https://onestopshop.rtb.ie/during-a-tenancy/


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    #2
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Moonbeam wrote: »
    This seems a it unfair on landlords ..

    Agreed, it essentially punishes any landlord that hasn't kept pace with market rates.

    The easiest option now is to ensure every incremental increase is applied no matter what.


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    #3
    DubCount
    Registered Users Posts: 1,089 ✭✭✭DubCount


    Moonbeam wrote: »
    This seems a it unfair on landlords .

    This is unfair on landlords. You can have 2 identical properties next door to each other with each having vastly different rent caps depending on how nice the landlord was to good sitting tenants or the luck of the timing of previous rent reviews. Even if the property is sold, the rent cap will be imposed on the new owner in the exact same way as the old owner - so this can even effect the sales value of a property.

    Dont expect any sympathy from the RTB, politicians, or some posters on this forum. Tenant rights are all the rage - landlord rights are less in vogue.

    If the gap between capped rent and market rent is big enough, it may be worthwhile for a landlord to significantly renovate (not well defined) the property which can allow the resetting of rent back to market rate - well at the moment anyway, though I'm sure that will be changed soon as well.


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    #4
    murphaph
    Registered Users Posts: 19,022 ✭✭✭✭murphaph


    Graham wrote: »
    Agreed, it essentially punishes any landlord that hasn't kept pace with market rates.

    The easiest option now is to ensure every incremental increase is applied no matter what.
    I suggest the OP's friend tries to find a legal way to terminate the lease and re let the property at current market rates. There are legal ways and if the rent is ridiculously below market rates it's worth it. The state simply did not play fair with the decent landlords who weren't involved in price gouging.


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    #5
    murphaph
    Registered Users Posts: 19,022 ✭✭✭✭murphaph


    DubCount wrote: »
    This is unfair on landlords. You can have 2 identical properties next door to each other with each having vastly different rent caps depending on how nice the landlord was to good sitting tenants or the luck of the timing of previous rent reviews. Even if the property is sold, the rent cap will be imposed on the new owner in the exact same way as the old owner - so this can even effect the sales value of a property.

    Dont expect any sympathy from the RTB, politicians, or some posters on this forum. Tenant rights are all the rage - landlord rights are less in vogue.

    If the gap between capped rent and market rent is big enough, it may be worthwhile for a landlord to significantly renovate (not well defined) the property which can allow the resetting of rent back to market rate - well at the moment anyway, though I'm sure that will be changed soon as well.
    Yeah I essentially posted the same before seeing your post.

    I would act now before further legislation is enacted.


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    #6
    shivermetimber
    Registered Users Posts: 270 ✭✭shivermetimber


    DubCount wrote: »
    ..If the gap between capped rent and market rent is big enough, it may be worthwhile for a landlord to significantly renovate (not well defined) the property which can allow the resetting of rent back to market rate - well at the moment anyway, though I'm sure that will be changed soon as well.

    I'm pretty sure the requirements have been clearly outlined for renovations to prevent a slap of paint style loophole.

    Also, a lot of accountability is on landlords for the crazy rental costs at the moment. Lemming syndrome combined with greed in many cases - if they are getting x surely I can. Or, I ****ed up and bought silly and now I can get someone else to cover for it. If it's the latter then that's unfortunate but if it's the former then no sympathy here. Just because you can doesn't mean you should but unfortunately there are very few landlords out there who would agree.


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    #7
    DaveyDave
    Registered Users Posts: 6,254 ✭✭✭DaveyDave


    Out of curiosity, what's the problem with keeping the rent the way it is? My mams house is €1,100 since 2013, house on the same road is €1,800. BER-D rating, lackluster furniture, wallpaper, carpet. No nice flooring, kitchen presses etc.


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    #8
    amcalester
    Closed Accounts Posts: 4,121 ✭✭✭amcalester


    DaveyDave wrote: »
    Out of curiosity, what's the problem with keeping the rent the way it is? My mams house is €1,100 since 2013, house on the same road is €1,800. BER-D rating, lackluster furniture, wallpaper, carpet. No nice flooring, kitchen presses etc.

    I'm assuming your mam is a good tenant which is why the landlord hasn't increased the rent, but if she were to move out then the next tenant will benefit from her good behavior.

    That's great says you, good karma all round.

    But it unfairly penalizes the landlord for not increasing the rent so what can he do?

    Increase rent to the maximum for all sitting tenants so as to avoid this situation.

    So now, your mam's rent is increasing when previously it wasn't. Landlord is happier, but tenant is worse off.

    Either way, 1 party is worse off.


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