Rent Increase in Rent Pressure Zone

Fian

Your landlord needs to give you notice in writing in the prescribed format of the rent increase. You are entitled to 90 days notice before the increase takes effect.

They should provide you with examples of 3 similar properties to establish that the new rent will be market rent, but that should be straightforward given that the market rent has advanced more than 12% in the last 3 years.

RTB website will give you the information you are looking for.

You don'#t appear to have any cause for complaint here, you should probably be grateful that your rent did not increase sooner. Bear in mind that because of compounding your rent could have increased more than 12% had annual rent increases been imposed.

SomeDude

Fian wrote: »

Your landlord needs to give you notice in writing in the prescribed format of the rent increase. You are entitled to 90 days notice before the increase takes effect.

They should provide you with examples of 3 similar properties to establish that the new rent will be market rent, but that should be straightforward given that the market rent has advanced more than 12% in the last 3 years.

RTB website will give you the information you are looking for.

You don'#t appear to have any cause for complaint here, you should probably be grateful that your rent did not increase sooner. Bear in mind that because of compounding your rent could have increased more than 12% had annual rent increases been imposed.

I might try the good old fashioned route of having a chat about it. We’ve been very good tenants imo. But sure you can always get more money in this market.

Dav010

SomeDude wrote: »

I might try the good old fashioned route of having a chat about it. We’ve been very good tenants imo. But sure you can always get more money in this market.

By very good tenants, do you mean you pay rent on time and don’t wreck the place? That is just doing what is required of all tenants.

SomeDude

Dav010 wrote: »

By very good tenants, do you mean you pay rent on time and don’t wreck the place? That is just doing what is required of all tenants.

No actually, I also wouldn’t call that being very good tenants. I doubt many landlords would, so I’m surprised by your question.

Dav010

SomeDude wrote: »

No actually, I also wouldn’t call that being very good tenants. I doubt many landlords would, so I surprised by your question.

Sorry, no offence meant. But when you say you will have a chat and that you have been very good tenants, what are “very good tenants”?

SomeDude

Dav010 wrote: »

Sorry, no offence meant. But when you say you will have a chat and that you have been very good tenants, what are “very good tenants”?

I’m not being smart, but I don’t think it would be right to go into detail on a public forum. I take it from your comments that you view tenants in very black and white manner.

Dav010

SomeDude wrote: »

I’m not being smart, but I don’t think it would be right to go into detail on a public forum. I take it from your comments that you view tenants in very black and white manner.

I do indeed, this is a business transaction.

SomeDude

Dav010 wrote: »

I do indeed, this is a business transaction.

Interesting to view it in such a binary way when there’s a human element involved. I guess there’s a risk when you change tenants that you end up with a ‘bad one’.

BigVanVador

Dav010 wrote: »

By very good tenants, do you mean you pay rent on time and don’t wreck the place? That is just doing what is required of all tenants.

I wish i had tenants like that!

Dav010

SomeDude wrote: »

Interesting to view it in such a binary way when there’s a human element involved. I guess there’s a risk when you change tenants that you end up with a ‘bad one’.

Binary is the way it should be, both LL and tenant should fulfil their respective responsibilities, then they are tenant and LL. When you have a chat with your LL, I don’t see why the LL should compromise on a legal rental increase because you have paid rent on time and respected the property.

SomeDude

Dav010 wrote: »

Binary is the way it should be, both LL and tenant should fulfil their respective responsibilities, then they are tenant and LL. When you have a chat with your LL, I don’t see why the LL should compromise on a legal rental increase because you have paid rent on time and respected the property.

Just because the regulations allow a LL to increase the rent to a certain level doesn’t mean they have to. If the LL doesn’t want to compromise that’s fine, they can start looking for a new tenant. And we can move elsewhere. Simple and binary 😉. Hopefully those new tenants won’t be ‘bad’ ones.

Dav010

SomeDude wrote: »

Just because the regulations allow a LL to increase the rent to a certain level doesn’t mean they have to. If the LL doesn’t want to compromise that’s fine, they can start looking for a new tenant. And we can move elsewhere. Simple and binary 😉. Hopefully those new tenants won’t be ‘bad’ ones.

Unfortunately the regs mean that if he doesn’t increase to permitted level, the mooted rent freeze that all the political parties are now talking about will penalise your LL going forward. The joys of ill thought out interference in the rental sector.

If you are in a RPZ, there probably won’t be a problem getting a new tenant, but you might have difficulty getting a new place to rent.

SomeDude

Dav010 wrote: »

Unfortunately the regs mean that if he doesn’t increase to permitted level, the mooted rent freeze that all the political parties are now talking about will penalise your LL going forward. The joys of ill thought out interference in the rental sector.

If you are in a RPZ, there probably won’t be a problem getting a new tenant, but you might have difficulty getting a new place to rent.

I don’t think we’ll have any difficulty luckily. There are places nearby. I’ve already spoken to a letting agent I dealt with before regarding availability. The LL probably won’t have difficulty finding a new tenant, but they might be unlucky and end up with a bad tenant.

Dav010

SomeDude wrote: »

I don’t think we’ll have any difficulty luckily. There are places nearby. I’ve already spoken to a letting agent I dealt with before regarding availability. The LL probably won’t have difficulty finding a new tenant, but they might be unlucky and end up with a bad tenant.

The odds are in his favour,.

SomeDude

Dav010 wrote: »

The odds are in his favour,.

It’s not a zero sum game Dav.

Dav010

SomeDude wrote: »

It’s not a zero sum game Dav.

Unfortunately the regs make rental increases an essential consideration rather than a discretionary one. Missing a rental increase effects what can be charged going forward to both you and the next tenant if a freeze comes in. The LL is losing money.

SomeDude

Dav010 wrote: »

Unfortunately the regs make rental increases an essential consideration rather than a discretionary one. Missing a rental increase effects what can be charged going forward to both you and the next tenant if a freeze comes in. The LL is losing money.

But they could potentially lose more if they’re unlucky enough to get a bad tenant. They need to decide if that’s a risk worth taking. No need to ask what your decision would be!

Dav010

SomeDude wrote: »

But they could potentially lose more if they’re unlucky enough to get a bad tenant. They need to decide if that’s a risk worth taking. No need to ask what your decision would be!

For those staying in the rental market and accepting the risk, it will be worth taking. There are considerably more good tenants than bad ones. As a business decision, it’s a no brainer.

SomeDude

Dav010 wrote: »

For those staying in the rental market and accepting the risk, it will be worth taking. There are considerably more good tenants than bad ones. As a business decision, it’s a no brainer.

By the sounds of it you’ve been lucky with your tenants. Unfortunately it’s not like that for everyone.

Rodin

12% increase after 3 years is less than 4% every year if the 4% is on the new rent (after the previous year's increase). Simple v compound increase

SomeDude

Rodin wrote: »

12% increase after 3 years is less than 4% every year if the 4% is on the new rent (after the previous year's increase). Simple v compound increase

Yeah, I get the maths.

Dav010

SomeDude wrote: »

By the sounds of it you’ve been lucky with your tenants. Unfortunately it’s not like that for everyone.

For the most part, yes, but a couple of bad ones. Ironically the bad ones have been with the nicest property I had, I sold it recently. The regs have focused the mind of LLs, the ones on the margin of needing the rent to pay a mortgage are getting out, leaving the business-minded owners, that means that the rental sector will be run as-per the regulations allow. Hence the statutory allowable rental increases.

Fol20

Dav010 wrote: »

For the most part, yes, but a couple of bad ones. Ironically the bad ones have been with the nicest property I had, I sold it recently. The regs have focused the mind of LLs, the ones on the margin of needing the rent to pay a mortgage are getting out, leaving the business-minded owners, that means that the rental sector will be run as-per the regulations allow. Hence the statutory allowable rental increases.

i will attest to this as in the past, i never increased for sitting tenants as i would then increase to market rate again once they leave. Since RPZ have come in, i have terminated leases to get them to market rate via renovation(this was at the start of the rpz) before any more changes are made.

Since then most of my tenants stayed put over the past 3/4 years and since market rate has shifted further again, i didnt increase rent during this period up until ff supported the rent freeze bill. All of my tenants have seen an increase of at least 1-300e this year as a result of this.

I didnt want to do this but at the end of the day, tenants look out for their best interests as several wanted to make sure i was inline with rpz during our talks and i do the same.

SomeDude

SomeDude wrote: »

Just because the regulations allow a LL to increase the rent to a certain level doesn’t mean they have to. If the LL doesn’t want to compromise that’s fine, they can start looking for a new tenant. And we can move elsewhere. Simple and binary ��. Hopefully those new tenants won’t be ‘bad’ ones.

Presumably you don’t ask for or expect pay increase at work given your opinion on legal rent increases, since they are the same thing essentially.

SomeDude

Valeria Prehistoric Drunkard wrote: »

Presumably you don’t ask for or expect pay increase at work given your opinion on legal rent increases, since they are the same thing essentially.

Generally I negotiate nox

SomeDude

SomeDude wrote: »

Generally I negotiate nox

If you were entitled by law to an certain percentage of an increase I doubt very much you would be negotiating to accept less, sure only a fool would do that.

SomeDude

Valeria Prehistoric Drunkard wrote: »

If you were entitled by law to an certain percentage of an increase I doubt very much you would be negotiating to accept less, sure only a fool would do that.

I don’t see how your hypothetical point is relevant. But thanks for your contribution.

handlemaster

SomeDude wrote: »

Interesting to view it in such a binary way when there’s a human element involved. I guess there’s a risk when you change tenants that you end up with a ‘bad one’.

Some dude. This is business. The regulation is in place the landlord is abiding by it. By all means ask that the Landlord gives you money in the for of rent reduction but the demand it high out there. The comments you keep making about the next tenant could be a bad one is interesting. He already has a tenant that doesn't want to pay the market rent after getting below market rent for years. But in your eyes that's a good tenant..

SomeDude

handlemaster wrote: »

Some dude. This is business. The regulation is in place the landlord is abiding by it. By all means ask that the Landlord gives you money in the for of rent reduction but the demand it high out there. The comments you keep making about the next tenant could be a bad one is interesting. He already has a tenant that doesn't want to pay the market rent after getting below market rent for years. But in your eyes that's a good tenant..

I clarified the point earlier on a ‘good tenant’, which I’m surprised you didn’t pick up on since you appear so taken by my comments.

‘By all means ask that the landlord gives you money’ is interesting wording. It’s very simple. There are currently very similar properties nearby available for less. I’d prefer not to move. But I’ll happily do so if I’m getting better value elsewhere.

ted1

Dav010 wrote: »

Unfortunately the regs make rental increases an essential consideration rather than a discretionary one. Missing a rental increase effects what can be charged going forward to both you and the next tenant if a freeze comes in. The LL is losing money.

Also affects the value of the property when he decides to sell. As the new owner is restricted on what return he can make.