Since covid, there have been many changes in the rules, regulations and laws that landlords must follow. One of the most important changes landlords need to keep apprised of is the rules surrounding rent increases.
In this article, we will look at what and when a landlord can charge, and how rent pressure zones affect a landlord’s potential profitability.
What Is a Rent Review in Ireland?
A rent review is a standard procedure in Ireland. More often than not a rent review is an opportunity to increase the rent that a tenant pays, on occasion, the review can also be used to lower rent.
Rent reviews are usually conducted in tandem with inflation. Most landlords prefer to ensure their tenant’s rent is kept in line with inflation.
Although a rent review can be requested at any time, there are rules that must be adhered to. A landlord is required to provide
- 90 days notice
- RTB Notice of Rent Review Form
When Can Landlords Raise the Rent?
There are strict rules that apply when landlords can raise the amount of rent they charge their tenants. The rules do differ between normal tenancies and the tenancies which exist inside a Rent Pressure Zone (RPZ).
The rules for a standard lease are simple but strict. On a standard lease, a landlord must give their tenants “24 months of certainty”.
24 months of certainty pertains to the amount of time a tenant can occupy a residence without the landlord having any legal right to increase the rent. In summary, every residential tenancy in Ireland has to run for 24 continuous months prior to the landlord being able to increase rent.
Supplementing the 24-month rule, there is also a 90-day notice period. If a landlord wishes to increase the rent after the initial 2-year grace period has expired, they must still provide 90 days’ notice to the tenant,
So theoretically from the start of a tenancy to when the rent can legally be increased is a period of 27 months.
How Much Can a Landlord Increase Rent By in Ireland?
In a typical rental agreement, there is no limit to the rent amount or the amount by which it can increase. Nevertheless, landlords are restricted from raising the rent beyond the current market price. This policy ensures that rental rates remain reasonable.
What Is a Rent Pressure Zone?
A rent pressure zone is an area that is restricted from rents being raised under the same rules as a standard lease. It’s important to remember that there is no limit on what new tenants can be charged in RPZs. The rules only apply to restricting rent increases on existing tenants.
Do you have to notify RTB of the rent increase?
Any changes to a tenancy should be submitted to the RTB. This includes any and all changes to rental amounts regardless of whether it’s an increase or decrease.
How do I notify the RTB of the rent increase?
You can update the RTB in a couple of ways, it can be done by e-mail to registrations@rtb.ie or by post to RTB, PO BOX 47, Clonakilty, Co Cork. Late fees may apply where applicable.
Kpm Property Management
Kpm property management has helped countless landlords free themselves from the day-to-day monotony of managing their investment properties.
If you are concerned about increasing your tenant’s rent, or the rules and regulations surrounding it. Then the experienced team at KPM can help.
Call us today for a free consultation and no-obligation quotation on managing your properties.
