Substantial change to apartment to increase rent to market rate.

[thestart]

Hi all,

Anyone have experience of changing the layout of an apartment and how it’s handled by RTB?

I am thinking of changing the layout of an apartment I rent so I can get current market rent.

It’s a two bed that can be changed to a three bed and I can add another storage room. I recently upgraded the boiler also. All quiet east changes.

if I can’t it’s going on the market in the new year.
It’s in an RPZ.

Any advice would be appreciated.

 

[NoRegretsCoyote]

Anyone have experience of changing the layout of an apartment and how it’s handled by RTB?

It's a pretty high bar to get them out, see below.

A tenancy can be terminated where the landlord intends to carry out substantial refurbishment of the property. There is are additional criteria which a landlord must satisfy and provide when issuing a notice of termination using this reason.

All landlords must state:

if planning permission is required,
the name of the contractor (if any),
the dates on which the intended works are to be carried out,
the proposed duration of the works.
Notices of Termination must also contain or be accompanied by a certificate in writing of a registered professional (within the meaning of the Building Control Act 2007) stating that:

The proposed refurbishment or renovation works would pose a threat to the health and safety of the occupants of the dwelling concerned and should not proceed while the dwelling is occupied, and;
Such a risk is likely to exist for such period as is specified in the certificate which shall not be less than 3 weeks.
A landlord must offer the property back to the original tenant on completion of the works. The landlord must offer the tenancy back to the previous tenant(s) once the refurbishment works are completed.

Then to charge higher rent you'd have to rely on the following:

or any 3 or more of the following:

internal layout of the dwelling being permanently altered;
the dwelling being adapted to provide for access and use by a person with a disability, within the meaning of the Disability Act 2005;
a permanent increase in the number of rooms in a dwelling;
in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply and that has a BER of D1 or lower, the BER (within the meaning of those Regulations) being improved by not less than 3 building energy ratings; or
in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply and that has a BER of C3 of higher, the BER (within the meaning of those Regulations) being improved by not less than 2 building energy ratings.

As you say you would have to add a room and get the BER up from a D1 to a C1 for example. This could be difficult in an apartment as all you can really do is change the gas boiler if you have one, you have no scope to do anything on insulation or windows.

The law - if you stick to the letter of it - will make it quite difficult to get your property up to market rent.

 

[thestart]

It's a pretty high bar to get them out, see below.



Then to charge higher rent you'd have to rely on the following:


As you say you would have to add a room and get the BER up from a D1 to a C1 for example. This could be difficult in an apartment as all you can really do is change the gas boiler if you have one, you have no scope to do anything on insulation or windows.

The law - if you stick to the letter of it - will make it quite difficult to get your property up to market rent.

I have access to the attic and it’s 1000 sq/ft and 6+meters high, 700sq/ft of usable floor area I guess. This space as a storage or laundry room, could this work as increase in floor space?

I was hoping to hear from landlords who have actually been through the process as calling the RTB is a waste of time.

 

[NoRegretsCoyote]

I was hoping to hear from landlords who have actually been through the process as calling the RTB is a waste of time.

You just comply with all the formal steps as per RTB website.

The RTB are not inspectors. Your actions are taken on trust by them. They will only investigate on the basis of a complaint by a former tenant that you didn't offer it back to them, or a future tenant on the grounds that the renovations were not sufficient to justify the higher rent.

You can be the judge of how likely this is.

 

[thestart]

You just comply with all the formal steps as per RTB website.

The RTB are not inspectors. Your actions are taken on trust by them. They will only investigate on the basis of a complaint by a former tenant that you didn't offer it back to them, or a future tenant on the grounds that the renovations were not sufficient to justify the higher rent.

You can be the judge of how likely this is.

Thanks for advice.

 

[Leo]

It’s a two bed that can be changed to a three bed and I can add another storage room.

Can you really do this with all rooms being compliant with the building regs in terms of size, ventilation, windows, etc? Say that could be done, what do the terms of your leasehold say about altering the structure? Most will not allow what you are proposing.

Similarly with the attic space, check the terms carefully, while you might have access it's unlikely you will be permitted to create rooms up there. It may be difficult or impossible to fit a room that meets the requirements for habitable space.

 

[Mamamia22]

Don’t think management will allow rooms in an attic as it might affect fire regulations. But you can do insulation to a higher standard AFAIK.

 

[thestart]

Can you really do this with all rooms being compliant with the building regs in terms of size, ventilation, windows, etc? Say that could be done, what do the terms of your leasehold say about altering the structure? Most will not allow what you are proposing.

Similarly with the attic space, check the terms carefully, while you might have access it's unlikely you will be permitted to create rooms up there. It may be difficult or impossible to fit a room that meets the requirements for habitable space.

Extra bedroom would be compliant to building regs no issue due to the layout of the apartment. Attic room not habitat space only for laundry/ storage.

 

[Leo]

Extra bedroom would be compliant to building regs no issue due to the layout of the apartment.

How would you achieve ventilation requirements or is there MHVR you would be permitted to extend or adapt?

 

[thestart]

The b

How would you achieve ventilation requirements or is there MHVR you would be permitted to extend or adapt

The bedroom would have a window in it. You don’t understand the layout of the apartment. It really is a simple change to add the bedroom.

 

[Leo]

The bedroom would have a window in it. You don’t understand the layout of the apartment. It really is a simple change to add the bedroom.

You don't understand the building regs if you think having a window is enough!

 

[NoRegretsCoyote]

@Leo is asking all the right questions here. The RTB will not provide any answers here btw.

@thestart you could be overthinking this. It might be simplest to just sell the apartment and buy another of equivalent value that is not subject to rent controls. Stamp duty, estate agent fees, void period, etc might be 5% of the value of the apartment and if you can increase rent to market rate then that might be simpler and easier.

 

[landlord]

This could be a huge waste of time and money if you do not end up satisfying the requirements for “substantial change” and of course if that’s the case when and if you then sell it, you will still be restricted in achieving its true value due to its previous below average market rent. Of course this will only make it less desirable to an investor and not a first time buyer.

 

[DannyBoyD]

Posters are assuming a purpose built apartment block. Flat in a converted house is a different proposition.

 

[Leo]

Posters are assuming a purpose built apartment block. Flat in a converted house is a different proposition.

The OP mentioned apartment, so most people do assume standard apartment block alright. I don't think it's all that common to call a flat in a converted house an apartment here but you're right, it could be the case. It would be quite unusual to have a 6+m high attic in a house though.