New Tenancy in Long Term Let

[PebbleBeach2020]

Hello. Quick question if I may on behalf of my friend.

They have an apartment to let out. Previous tenants there five years and moved out last week. They intend increasing the rent 4% as it's way under market rate. They increased it 12 months ago so that's why 4% is all that's permitted.

It's my understanding that they are then not permitted to increase the rent for 24 months after the tenancy starts. Is that correct? And then every 12 months thereafter?

Very frustrating for them as they said they had great tenants for a long time and didn't increase the rent and now they are stuck way under market value. Other apartments rent for 1500 and they are 900. A great deal for someone.

Thank you for advice and input on their behalf.

 

[Leo]

It's my understanding that they are then not permitted to increase the rent for 24 months after the tenancy starts. Is that correct? And then every 12 months thereafter?

Yes, but the 4% is per annum, so if they review every 2 years, they can increase by 8.16%. There's a calculator on the RTB website that will guide them on the maximum allowed.

 

[Sarenco]

Yes, but the 4% is per annum, so if they review every 2 years, they can increase by 8.16%. There's a calculator on the RTB website that will guide them on the maximum allowed.

That was only the case for tenancies in Rent Pressure Zones which began before 24 December 2016.

Otherwise, the rent on tenancies in Rent Pressure Zones can be reviewed on an annual basis – no need to wait 24 months.

 

[Leo]

That was only the case for tenancies in Rent Pressure Zones which began before 24 December 2016.

Otherwise, the rent on tenancies in Rent Pressure Zones can be reviewed on an annual basis – no need to wait 24 months.

Good point, I had just focused on highlighting that even if they did wait 2 years, they weren't limited to 4%.

 

[PebbleBeach2020]

Thanks for replies. They have decided to sell up instead. Might be a wise move.