Clarification around new rent rules and increases - two specific situations

[Learner2015]

Hi all, hoping someone could confirmwhat my options are below:

Property 1
Current tenant in situ since October 2014 - rent is about 400 below market value. It is in a rent pressure zone.

Can I only increase rent with current tenant by 4% event though that will leave the property substantially under market value?

If I want to increase it by more then 4% do I have to do substantial refurbishment?

If the current tenant moves out and I get new tenants with no refurbishment am I still tied to the 4% increase?

Property 2
New letting has been vacant for 4 years. Can I set the rent at market value regardless of the rent was set four years ago?

 

[Sarenco]

Can I only increase rent with current tenant by 4% event though that will leave the property substantially under market value?

The link below gives a worked example to calculate the application of the 4% annual cap in circumstances where the rent hasn't been reviewed in over 24 months.

If I want to increase it by more then 4% do I have to do substantial refurbishment?

Properties that have undergone a substantial change are exempt from the rent cap measures. A ‘substantial change’ must be a significant change to the dwelling resulting in increased market value of the tenancy.

If the current tenant moves out and I get new tenants with no refurbishment am I still tied to the 4% increase?

You are still tied to the same rent cap in such circumstances, yes.

New letting has been vacant for 4 years. Can I set the rent at market value regardless of the rent was set four years ago?

Yes.

[broken link removed]

 

[Learner2015]

Thanks Sarenco.

Based on the link with how to calculate if no rent review in over 2 years I can increase the rent by a whopping 4.67% - the property will still be 350 euro under market value.

 

[Sarenco]

Yep, the new measures are creating some fairly extreme distortions in the rental market.

You might want to communicate your views on the matter to the Minister and/or your local TDs.

 

[Learner2015]

Sarenco I agree, a letter required to local TD most definitely.