Query regarding rent increase

[Gordon Gekko]

Hi,

The RTB calculator isn’t working for me on my phone; hopefully someone can help.

My tenant moved in during March 2017. He’s leaving in April. He pays €1,620 a month. The market rent in the area is circa €1,700.

Can I charge a new tenant €1,685 (i.e. €1,620 x 1.04)?

Many thanks.

 

[Thirsty]

If you're not in a rent control area you can charge what the market can bear.

If you are, then from memory its 4% every 2 years. So you can't increase rent until march 2019.

 

[Sarenco]

The rent can be set at €1,690 next April if the current rent came into effect last March –

R x (1 + 0.04 x t/m)

R = The amount of rent last set under a tenancy for the dwelling (the current rent amount)
t = The number of months between the date the current rent came in to effect and the date the new rent amount will come in to effect.
m = 12

@Thirsty - if a tenancy begins on or after 24 December 2016 in an RPZ, the landlord can review the rent on an annual basis.

 

[Gordon Gekko]

Thanks Sarenco.

I didn’t realise that the 4% get pro-rated on a per month basis.