New Rent Pressure Zone

Grace Venus

My property has been added to the new rent pressure zones. The rent is too low is there anything I can do?

amcalester

Make substantial refurbishments to the property.

hardybuck

Does anyone know when the changes become effective?

SozBbz

How are people still getting cough by this? I don't understand any landlord out there not adjusting their rents if they are exceptionally low relative to the market rate. RPZs have been a reality for a few years now and unless you own a property in the back of beyond, then you need to expect it.

You can use any of the various excuses, ie renovations, wanting the property back for your own or close relatives use, or to sell.

Other than that, start the process of raising the rent annually by 4% each year.

hardybuck

I had sympathy for LLs caught by the first round of RPZ, maybe even those in the second round of RPZ designations but anyone caught now is totally asleep at the wheel.

Leaving the risk of an RPZ being introduced out of the equation it’s just terribly bad running of a business to have your tenants paying well below the market rate, a property should be kept at max possible rent at all times. But after all that’s gone on and still not increasing the rent and getting caught now is just stupid.

hardybuck wrote: »

Does anyone know when the changes become effective?

Radio report this morning made it sound like today/tomorrow but not sure how accurate that is.

hardybuck

Scott Wailing Flax wrote: »

I had sympathy for LLs caught by the first round of RPZ, maybe even though in the second round of RPZ designations but anyone caught now is totally asleep at the wheel.

Leaving the risk of an RPZ being introduced out of the equation it’s just terribly bad running of a business to have your tenants paying well below the market rate, a property should be kept at max possible rent at all times. But after all that’s gone on and still not increasing the rent and getting caught now is just stupid.

You'll always have people who're not mad keen on upping rent for a variety of reasons.

E.g. a property that would need investment to command a higher rent, maybe a LL who is planning to exit the market in a couple of years and it isn't worth the hassle of losing reliable tenants - maybe they've got a relative in there.

SozBbz

hardybuck wrote: »

You'll always have people who're not mad keen on upping rent for a variety of reasons.

E.g. a property that would need investment to command a higher rent, maybe a LL who is planning to exit the market in a couple of years and it isn't worth the hassle of losing reliable tenants - maybe they've got a relative in there.

Well if any of these were the case, then the OP wouldnt be on posting to say their property is undervalued.

IMO its typically people just putting it off for whatever reason, laziness, conflict avoidance, whatever, and then getting caught by the introduction of new RPZ.

hardybuck

cruizer101 wrote: »

Its still a bit silly though, if you really wanted to keep the rent low (good tenant or relative) I would look at coming to some sort of a situation where you increase the rent and give the difference back in cash or let them go into arrears on which you never follow up on.
At least that way if you are to re-let or sell as investment you can do so with the higher rent figure.

Agreed - but I think a lot of people in the likes of Fermoy in Cork, Athlone et al might have thought this was a thing for the likes of Dublin, Galway, Limerick etc.

I pretty much drove a relative to instigate a rent review in May, property was about 20% below where it should have been. It was outside RPZ then and will be inside it now - hopefully they aren't caught by the 90 day period.

beauf

Grace Venus wrote: »

My property has been added to the new rent pressure zones. The rent is too low is there anything I can do?

if you weren't bothered about it before now, why are you now?

bigpink

Are these pressure zones being checked and enforced?
Are they having effect on the market

Graham

Mod Note

Several posts which would fall into the dubiously legal category of the forum charter have been deleted. No more please.

rireland

Is it 4% a year or 4% every 2 years?

SozBbz

rireland wrote: »

Is it 4% a year or 4% every 2 years?

From the RTB.

Following the designation of a Rent Pressure Zone, all existing tenants at the relevant date of designation are still covered by the 24 month rent certainty laws. Therefore, a landlord must wait 24 months from the tenancy commencing or 24 months from the service of the last rent review notice before serving a further rent review.

A tenant must be informed of any review to the rent with at least 90 days’ notice in writing (an email or text is not considered appropriate notice of a rent review) of a change in rent. These sample notices of rent review can be used to create a rent review notice.The rent cannot be increased by more than 4%, and the rent being sought should not be more than local market rents for similar properties. After an initial rent review, the landlord will be entitled to review the rent every 12 months.

the_syco

SozBbz wrote: »

How are people still getting cough by this? I don't understand any landlord out there not adjusting their rents if they are exceptionally low relative to the market rate.

The LL generally has a nice tenant who takes care of the place. The money is coming in, and all is good. The LL often plans to go market rate when the current tenant moves out.

Now, the RPZ is forcing LL's to up their rent even if they're outside the current RPZ's, in case their area becomes an RPZ.

OP; find out when the RPZ comes into effect, and give the tenant notice that you're upping the rent now.

I'm unsure if you can let them keep paying their current rent after you up the rent; talk to a solicitor about this.