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RENT Pressure zone Query.

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  • 27-02-2021 4:02pm
    #1
    steve66
    Registered Users Posts: 196 ✭✭


    My previous place of residence was in a rent pressure zone area. I lived there for over 10 year. The rent was never increased, until It was bought out. I was told today that if a property in a RP zone is sold, the new owner does not have to adhere to the 4 percent rule. Does anyone know if this is true?


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    #2
    dennyk
    Registered Users Posts: 1,701 ✭✭✭dennyk


    Nope, not true; the only way the RPZ restriction doesn't apply is if the new owner makes substantial changes to the property (significant works like adding/removing rooms or significantly improving the BER, not a lick of paint and new floors), or if it is off the letting market (i.e. not listed for rent or occupied by a tenant) for a long period of time (two years, I believe). However, if the rent was never raised for ten years, the new owner will be able to put it up a fair bit; the limit is actually 4% per year since the last increase, not just a flat 4% higher than the last rent regardless of when it was set.

    That said, many new owners would just set the rent to whatever they want if a new tenant is coming in, as a new tenant wouldn't know the old rent, and most don't know that the landlord is supposed to provide that info to them in writing (or are rightfully afraid that pushing for that will result in them losing their chance at the property).


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    #3
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    steve66 wrote: »
    My previous place of residence was in a rent pressure zone area. I lived there for over 10 year. The rent was never increased, until It was bought out. I was told today that if a property in a RP zone is sold, the new owner does not have to adhere to the 4 percent rule. Does anyone know if this is true?

    It all depends on when the rent was last reviewed.
    The 4% is a per annum increase.
    In the event that the rent has not been reviewed in years- the landlord can review the rent to encompass the whole 10 years in one foul swoop (its not 40% though- there is a specific formula used to calculate the allowable increase).

    Plug your figures in here and it will tell you the allowable increase.


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