New rental rules .... so bad for all

Fkall said the tenancy changed during Covid; the regulations surrounding rent reviews were in place long before that

The formula used to be that you could increase it by 4% per year, and then if it was longer than that since the last increase, it could multiply. So it was

4% * (months since last increase / 12)

Basically if you hadn't changed it in 1 year, you could push it up by 4%, if it was 2 years then you could push it up 8%, etc, or something partial in between (mine went up by 6% after 18 months of no change previously).

The new rules since July are that it is entirely based on inflation instead. The RTB have a calculator here: https://www.rtb.ie/calculator/rpz

What this basically means is that it doesn't specifically matter how long it was since it increased, what matters is the difference in inflation between now and when it was last set. In general, there will have been more inflation if it was set a longer time ago, but not guaranteed (e.g. according to the chart in the link above, if rent was set in Oct 2020, you'd actually be able to raise it by more than if it was set in Oct 2019).

However, on top of that there is a new rule coming in soon that also caps increases to 2% per year: https://www.irishexaminer.com/news/politics/arid-40735440.html

So rent increases will be either 2% or the inflation adjusted amount, whichever is lower.

It's not so much about it being a "poor me" story as it is showing how bad the system is. People complain about some LLs leaving apartments empty, but look at this and you'll see why. If you drop the rates when the market is better for renters, you're stuck with that for years to come. The commenter above did "the right thing" by renting out at a lower rate, and now they've lost out because of it.

Ok so if I didn't increase rent for 3 year I could increase it by 6% or whatever inflation was, whichever is less. I assume this only applies to new tenancies and not existing one? And there is a cap of 2% on any given rent review?

Wasn't this the issue in the first place, that after, that after the covid rent freeze people where facing into an 8% rent increase?

Yes. I understood that they would raise the rent annually to reduce the difference between the pre-Covid rent and current rent. Now that increases are linked to inflation and capped at 2% that isn’t such a good option.

Anyway, I may have misunderstood. Perhaps they didn’t know about rent reviews before.

It's bleedin obvious the original poster is referencing the break in rent increases being linked to market demand and change from 4% max to 2% or inflation whichever is less and the long term impact that has. Something announced, released and implemented all in the same week.

Pricing a property under market rate pretty much meant you could increase rent every year until you hit the market rate, under the new system that isn't the case. Not sure why there's a need to try and make the OP seem thick.

What I'm attempting to ascertain is what parts of "this" will apply to new tenancy versus existing in the scenario where there has been a pause in rent increases. When I use https://www.rtb.ie/calculator/rpz and up in a two year period it indicates I can increase rent by 4.6%, I assume this only applies to new tenancy and not to a rent review for existing tenants and this is limited at 2%.

To be clear - I was happy to recover the drop over 6 or 7 years but the proposed legalisation which will be debated in the Dail next month will extend that recovery to guts of 20 years.

As I said, I have learnt my lesson.

Reporting made it seem like it's law now? Not sure tbh, I had seen references to expedited voting.

The problem is when you are a large corporate LL you can take this BS. smaller LL with 1-2 rentals gets f@@ked over by the system. When I first was involved another LL said the way he worked was a tenant came in he rented he house, he never increased the rent, and after a 30-50 month period the tenant moved on. Then he fixed any issues, painted and fixed up the property moved the rent up to the market rate and moved on, deprending on how efficient he was, anddamage done the property was empty 20-50 days.

For a smaller LL, now if you make any error, you are better off looking for vacant possession and selling

Can anyone shed light on my position?

Renting apartment last rent review 31/12/19.

tenant lost job due to COVID and is still on pup.

due to COVID restrictions I cannot raise rent as tenant is effected by pandemic.

When can I review rent and by what %?

My best scenario would be after 24 months +6% up to July 2021 (COVID rules changed) plus rate of inflation or 2% whatever is lowest?

or is it just rate of inflation or 2% whatever is lowest?

Phone up the RTB and ask them the “when”.

And then use the RTB calculator to find out by “how much” you can raise the rent.

I’d recommend taking a screen shot / print out of the information you type into the RTB calculator and their estimation, so you have proof you have not raised the rent above the allowance.

The government keeps changing its mind on this so often it’d be best to have physical proof directly from the RTB itself to cover your back.

Didn’t think of that!! Thanks

Yes it is my point - I make a business decision in full knowledge of the rules. Unfortunately for me the rules changed but I have learnt my lesson

Its a business deal.

Stop verbal agreements, worth nothing either side. Keep to the legal's and then no issues for either side.