Rent Increase in defined pressure zones

testtech05

Hey All,

I have been living in my apartment for the past 5 years, letting through an agency and all pretty good so far. Rent was increased last year just before the new rules were introduced around capping rent increases etc. I was happy enough to proceed after a bit of negotiation as it was the 1st increase since I had moved in.

Fast forward 12 months and we have just received notice of a further 4% increase effective from May 2018. I had thought that rent prices could only be reviewed every 24 months under the new rules or is that for properties outside of the RPZ's only?

I don't want to make a big fuss over it but just want to make sure I have my info correct before I chat to the agency.

Thanks for any info.

Aye Bosun

https://onestopshop.rtb.ie/calculator/rpz

Here's the link to RTB calculator, pop the details of your tenancy in and it will tell you what the allowable increase is.

testtech05

Aye Bosun wrote: »

https://onestopshop.rtb.ie/calculator/rpz

Here's the link to RTB calculator, pop the details of your tenancy in and it will tell you what the allowable increase is.

Great thanks a lot for that.

TheChizler

testtech05 wrote: »

Fast forward 12 months and we have just received notice of a further 4% increase effective from May 2018. I had thought that rent prices could only be reviewed every 24 months under the new rules or is that for properties outside of the RPZ's only?

Since your tenancy existed and the last increase was before the new rules they should wait 24 months before the next increase, 12 months thereafter. I would politely query it with them and mention this page on the RTB site.

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

Fian

12 months from last review in a RPZ, however there is an exception - 24 months for the first increase under an existing tenancy which as in place before the legislation came in. Basically the 24 month rule between reviews was maintained for the first one in RPZ.

the 24 months rule is set out in subsection 20(4) below - and applies only for a limited period of time.

20.—(1) Subject to subsection (3), a review of the rent under the tenancy of a dwelling may not occur—

(a) more frequently than once in each period of 12 months, nor

(b) in the period of 12 months beginning on the commencement of the tenancy.

(2) Subsection (1) has effect notwithstanding any provision to the contrary in the lease or tenancy agreement concerned.

(3) Subsection (1) does not apply despite the fact that a period of less than 12 months has elapsed from—

(a) the last review of the rent under the tenancy, or

(b) the commencement of the tenancy,

if, in that period—

(i) a substantial change in the nature of the accommodation provided under the tenancy occurs, and

(ii) the rent under the tenancy, were it to be set immediately after that change, would, by virtue of that change, be different to what was the market rent for the tenancy at the time of that last review or the commencement of the tenancy, as the case may be.

(4) The references to ‘12 months’ in—

(a) paragraphs (a) and (b) of subsection (1), and

(b) subsection (3),

shall, for the duration of the relevant period, be construed as references to ‘24 months’.

(5) Subsections (4) and (6) shall cease to have effect on the day immediately before the fourth anniversary of the day on which section 25 of the Residential Tenancies (Amendment) Act 2015 came into operation and, on and from the first-mentioned day—

(a) paragraphs (a) and (b) of subsection (1), and

(b) subsection (3),

shall be read as if subsection (4) had not been enacted.

(6) In subsection (4), ‘relevant period’ means the period commencing on the day on which section 25 of the Residential Tenancies (Amendment) Act 2015 comes into operation and ending on the day immediately before the fourth anniversary of the day on which that section came into operation

24C. (1) Where a tenancy commenced before the relevant date (within the meaning of section 19(7)) and the area in which the tenancy is situated is in a rent pressure zone (within the meaning of that section), then—

(a) the first rent review after the relevant date shall be carried out in accordance with section 20, and

(b) any subsequent rent review shall be carried out as if subsections (4) to (6) of section 20 had not been enacted.

(2) Where a tenancy commences on or after the relevant date (within the meaning of section 19(7)), and the area in which the tenancy is situated is in a rent pressure zone (within the meaning of that section), then any rent review after that date shall be carried out as if subsections (4) to (6) of section 20 had not been enacted.”.

testtech05

Fian wrote: »

12 months from last review in a RPZ, however there is an exception - 24 months for the first increase under an existing tenancy which as in place before the legislation came in. Basically the 24 month rule between reviews was maintained for the first one in RPZ.

the 24 months rule is set out in subsection 20(4) below - and applies only for a limited period of time.

Thanks for that Fian, I have sent on the info from the RTB website to the agency. From the info there it seems to me that rent cannot be reviewed until next year and then yearly afterwards but now to wait and see what they come back with.

MicktheMan

testtech05 wrote: »

I have been living in my apartment for the past 5 years,

This means you have commenced a new Part 4 tenancy since the new rules came into existence, therefore 12 monthly rent reviews allowed.

The_Conductor

testtech05 wrote: »

Thanks for that Fian, I have sent on the info from the RTB website to the agency. From the info there it seems to me that rent cannot be reviewed until next year and then yearly afterwards but now to wait and see what they come back with.

Given the length of your tenancy- the notice of the increase is 90 days after the elapse of the period- so the increase itself is 24 months + 90 days. I.e. you cannot give notice of the increase- within the 24 months to come into effect at the end of the 24 months- the increase is given on the elapse of the 24 months and is valid 90 days hence.