Rent Increase

somesoldiers

Hi All

I have recently received notice of a rent increase of 32%. All the procedures seem to have been followed, I am not in a RPZ. I have not had an increase in two years and I have been given the required notice.

I have also been given 3 examples of rents in a "similar area".

My issue is with the Market Value estimate. The examples given have been for two major towns in Meath, Navan and Kells. The house I rent is in a village 4 miles north of Kells. I do not think that this is a fair rent increase for my area. 20% would be nearer the mark.

One of the examples provided was a similar house in Kells, same bedrooms at the same price but again my house is 4 miles from Kells.
The other two were Navan and were 20% above what the new rent will be.

Can anyone advise how I go about getting the evidence below? there are no current houses for rent in the exact area, in this case is it fair for LL to provide the examples he has?

you should provide evidence of rental rates for similar properties in the same area.

http://www.citizensinformation.ie/en/housing/renting_a_home/rent_increases.html#l8523b

Baby01032012

In one word yes. If your not able to find similar properties in the local area how do you expect landlord too. Is 4 miles duh a huge distance to argue with. He’s done his best to the letter of law. You could try negotiating with him if you think it’s worth it. Put it this way, how much would you expect to pay now if you decide to move. I’m guessing that there is none available in the area so you’d have to move to the town which comes back to the examples given.

dennyk

Technically it's supposed to be at least a comparable location, if not your exact location; if you're in a rural detached house, they should be showing you other rural detached houses of a similar size, not semi-ds in central Dublin. Honestly, though, a house in Moynalty or a house in Kells is going to be considered comparable, most likely. Using examples from Navan might be arguable due to the size and closer proximity to Dublin, if nothing else, but he's not charging you their price, he's charging you what the place in Kells costs, so he's being reasonable enough, I'd say. It'd be really petty to take him to the RTB over that, unless you can produce clear examples yourself of comparable properties that are much cheaper than the new rent (and if you can, well, you could always rent one of those instead, might be less trouble...).

Fian

"market rate" means what someone else would pay to rent your place. It sounds like there is very little competition.

If you are unhappy with the rent he is proposing to the extent that you are thinking "feck this i should move out and rent elsewhere I am being overcharged" then he is probably seeking to charge a rate higher than market rate.

If you would stay if push came to shove rather than move out - he is probably charging market rate.

You have benefitted by being at least 20% (by your own estimation) under market rate for 2 years. You seem to be getting a propsed new rent 20% below the prices charged in Navan. It doesn't really sound like your landlord is seeking to charge a rack rent.

If you believe he is unlawfully charging more than market rent you are entitled to bring a complaint to RTB.

On the other hand you are likely to find your part IV tenancy is not renewed when it expires if you do.

If you honestly feel the proposed rent is excessive maybea phone call and negotiation would be the smart approach.

Sleeper12

somesoldiers wrote:

I have recently received notice of a rent increase of 32%. All the procedures seem to have been followed, I am not in a RPZ. I have not had an increase in two years and I have been given the required notice.

Sit down and try negotiate with the landlord. This is your only option imo

handlemaster

Again it appears the landlord has been charging considerably below market rate. The tenants never appreciate this, landlords should charge the max possible to prevent the tenants feeling their getting 'done'.

Claw Hammer

You can challenge this in the RTB. It will be very difficult to succeed unless you bring in a valuer to support your case. The cost of the valuer will have to be borne by you.

Tipsy McSwagger

Sorry to hijack but does the rent increase notice have to be handwritten?

Baby01032012

Tipsy McSwagger wrote: »

Sorry to hijack but does the rent increase notice have to be handwritten?

In writing yes..hand written or typed texts are not accepted

Claw Hammer

Baby01032012 wrote: »

In writing yes..hand written or typed texts are not accepted

It has to be in writing. Not necessarily handwritten. A text or email is not considered writing by the RTB.

Baby01032012

Claw Hammer wrote: »

You can challenge this in the RTB. It will be very difficult to succeed unless you bring in a valuer to support your case. The cost of the valuer will have to be borne by you.

Rtb won’t entertain a valued. They don’t expect the landlord to have employed a valued to arrive at the market rent. It’s 3 similar places which can be easily found on Daft etc

Baby01032012

Tipsy McSwagger wrote: »

Sorry to hijack but does the rent increase notice have to be handwritten?

In writing yes..hand written or typed texts are not accepted

Claw Hammer

Baby01032012 wrote: »

Rtb won’t entertain a valued. They don’t expect the landlord to have employed a valued to arrive at the market rent. It’s 3 similar places which can be easily found on Daft etc

I have been to the RTB with valuers. They have always been accepted. They are very reluctant to estimate rent without a valuers evidence.

Tipsy McSwagger

Baby01032012 wrote: »

In writing yes..hand written or typed texts are not accepted

So a letter that has been posted is ok?

Xterminator

yes.

Baby01032012

Claw Hammer wrote: »

I have been to the RTB with valuers. They have always been accepted. They are very reluctant to estimate rent without a valuers evidence.

Yes I’m sure they accept them when you bring them. But where in law does it state landlord must get an independent valuation...no where. It’s to use 3 examples which are readily available not to add extra expense.

somesoldiers

Thanks all, so 4 landlords meet down the pub, they all own houses in an estate In a small town/village. They are the only ones with rented accommodation in the area.
They decide to collude ina price increase, they all use the other 3 as examples, any protection for tenants here?

Sleeper12

somesoldiers wrote: »

Thanks all, so 4 landlords meet down the pub, they all own houses in an estate In a small town/village. They are the only ones with rented accommodation in the area.
They decide to collude ina price increase, they all use the other 3 as examples, any protection for tenants here?

In fairness it's not the landlords fault that there are no other properties listed no more than it's OPs fault that there are no places listed




Many landlords in an area like this deliberately get to know each other. I'm not suggesting rent fixing but if no places were listed they can find out the going rent directly from other landlords & show proof if required.



There's nothing stopping tenants befriending each other & comparing rent if none is listed.

Browney7

handlemaster wrote: »

Again it appears the landlord has been charging considerably below market rate. The tenants never appreciate this, landlords should charge the max possible to prevent the tenants feeling their getting 'done'.

When the rent was last set (probably two years ago) it was realistically close enough to market rent. The LL hasn't been some benevolent knight in shining armour adhering to the two year rules on rent increases. The increase now is anticipating the area becoming an RPZ which is a prudent course of action for the LL.

size5

Tipsy McSwagger wrote: »

So a letter that has been posted is ok?

or dropped in through the letterbox if LL lives nearby

Fian

somesoldiers wrote: »

Thanks all, so 4 landlords meet down the pub, they all own houses in an estate In a small town/village. They are the only ones with rented accommodation in the area.
They decide to collude ina price increase, they all use the other 3 as examples, any protection for tenants here?

Leaving aside anti competitive / cartel concerns, which would apply where any service providers collude as to the prices they charge, if the rent they increaase to is "market rent " - i.e. they can actually get someone to pay that rent, then there is no reason for protection outside an RPZ. Market rent means what the market will bear, it is not intended to make landlords charge less than they could get on the open market.

The limitation to market rent (outside an RPZ) is intended to protect tenants against eviction by slight - where a landlord would increase rent to a rent that he cannot expect to be paid in order to cause a tenant to leave, so that the property can be rented to somsone else at a market rent, or put on Air BnB or whatever.

Claw Hammer

Baby01032012 wrote: »

Yes I’m sure they accept them when you bring them. But where in law does it state landlord must get an independent valuation...no where. It’s to use 3 examples which are readily available not to add extra expense.

The landlord doesn't need a valuer when issuing a rent increase notice. The time valuers are need is at RTB hearings. There is a book published about the Residential Tenancies system "Landlord and Tenant Law - The Residential Sector [Hardback] | Add to Basket
Author : Jennifer Ring
Author : Una Cassidy
Publisher: Round Hall
Publication Date: 30/06/2010
and the authors deal with the issue of establishing the market rent and the attitude taken by the RTB. Daft ads are not sufficient in most cases since they are inadmissible hearsay for one thing and don't have full details for another. Most people who succeed in disputes about the level of market rent do so because of valuer evidence.

Silverscott

Claw Hammer wrote: »

It has to be in writing. Not necessarily handwritten. A text or email is not considered writing by the RTB.

It has to be in writing .As in handwritten with a Pen ?
Or is a typed letter signed and dated acceptable ?
Cheers..

dennyk

A typed/printed letter is fine, it just has to be a hard copy, not an email or text.

davo10

Silverscott wrote: »

It has to be in writing .As in handwritten with a Pen ?
Or is a typed letter signed and dated acceptable ?
Cheers..

As in letter form, on paper rather than electronic. It can be handwritten with a pen, or type and printed. It just has to have all the required info to be valid, and in hardcopy (paper) form.

Silverscott

davo10 wrote: »

As in letter form, on paper rather than electronic. It can be handwritten with a pen, or type and printed. It just has to have all the required info to be valid, and in hardcopy (paper) form.

The part about if not happy with increase etc .they have 28 days within date of getting letter or 90 days before the increase date due to appeal.do you have to give them both options or can you pick either.thank you

Claw Hammer

Silverscott wrote: »

The part about if not happy with increase etc .they have 28 days within date of getting letter or 90 days before the increase date due to appeal.do you have to give them both options or can you pick either.thank you

It is the tenants choice.