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Calculating a rent increase using RTB calculator

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  • 19-05-2019 4:32pm
    #1
    April 73
    Registered Users Posts: 846 ✭✭✭


    I think I’m being very thick here but using the RTB rent calculator to calculate a rent increase is giving me the wrong number (I think) even after inputting all the details it asks for.
    The calculator is giving me this:
    €1250 x (1+0.04*29/12) = €1370.83

    The rent was last increased on 01/04/2017 and the date the new rent will come into effect is 01/09/2019 (allowing me to give a bit more than 90 days notice)

    My confusion arises because I thought the first review after two years for an existing tenancy prior to the 24th of Dec 2016 only allowed 2% increase per year.

    Does the RTB calculator not take this into account even when it asks for the dates?
    Should the calculation be:
    €1250 x (1+0.04*29/24) = €1310.41

    But then the extra five months is also at the 2% pro-rata level?

    If the first two years is 4% increase & the 5 months is 5/12 x 4% should the rent increase by €1250 + 5.67% = €1320.87

    Any mathematical geniuses out there who could help me? Thanks.


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    #2
    sk8board
    Registered Users Posts: 3,335 ✭✭✭sk8board


    Hi there,
    I'm bumping this as I've the same issue with the RTB calculator, after negotiating a rent increase for a sitting tenant (after 6 years).

    The rent from Dec 2015 is €1300 and the calculator works out the max increase as €1,445 - thats 2% pa for 5.5 years. Shouldn't it be 2% for the first 2 years/24months, and then up to 4% for the 3.5 years thereafter?

    we agreed a rent of €1,500 (still miles below the market rate, but that's ok), but I need to send a screenshot from the RTB website and I can't figure it out.

    EDIT: I've figured this out - up until the FIRST rent review for an existing tenant, irrespective of how long ago the rent was set, the max increase is 2% pa. In other words, I'm being penailised for not increasing it 4% (2yrs * 2%) after the first 2 years of the tenancy had passed. If it did that I could increase it up to 4% for each of the subsequent 3.5years.

    Its only a small difference to me, as hte rent I agreed was still so much below the market rate, but its bizarre.


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    #3
    meijin
    Registered Users Posts: 1,266 ✭✭✭meijin


    sk8board wrote: »
    The rent from Dec 2015 is €1300 and the calculator works out the max increase as €1,445 - thats 2% pa for 5.5 years. Shouldn't it be 2% for the first 2 years/24months, and then up to 4% for the 3.5 years thereafter?

    we agreed a rent of €1,500 (still miles below the market rate, but that's ok), but I need to send a screenshot from the RTB website and I can't figure it out.

    that's illegal then?


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    #4
    sk8board
    Registered Users Posts: 3,335 ✭✭✭sk8board


    meijin wrote: »
    that's illegal then?

    which is why I asked the question :D


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