Rate of rent increase

M

march_hare

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Couple renting semi-furnished townhouse outside Cork for almost 3 years.
Good tenants, house kept spotless, garden tended, no problems at all.
Rent increase of 20% for coming year. Reason given: interest rate and there have been no increase in previous years.
We think we got a good deal on day 1 (got a reduction on what was asked for intially) and get on ok with landlord and understand some kind of increase in rent but isn’t 20% a bit steep? We feel unappreciated!
Landlord is also aware we are building house currently so big rent increase is really unwelcome. Moving out would be a major hassle as a rented house is only needed for a further 6 months which landlord is agreeable to but other options for short term lets are not as easy to come by. Plus we have a houseful of contents. So we’re a bit caught.
Is such an increase usual?
 
Might be a good idea to check with local agents as to what similar properties are renting for at the moment,maybe check with daft also.At least then you will know if what is being asked now is under over or equal to the market rent.

It sounds like a case for amicable negotiations with your Landlord especially once you have your facts and figures before you. Presume he knows you will be moving out soon although try to keep your dates flexible in case there are delays with the new build.
 
According to the tennancy act, the landlord is entitled to raise rent in line with market rates. As stated by bacchus, rents have generally increased by about 10% over the last year. If you got a good deal three years ago and no rises since then, then chances are that your new rent after the 20% increase is at or below the market value.

Check with local EA, and on daft, as to what similar properties in your area are asking/fetching in rent. If it's less than your proposed new rent, then tell the landlord that you are going to lodge an appeal with the prtb.

I sympathise as I just had my own rent review recently. Fortunatly for me the increase was under 10%
 
bacchus said:
Have a read at this... Rent increased by 11.9% over the 12 months only...
Click to expand...
Two faults with that statistic.

1. It's an estimate for the entire country, not the particular area that the original poster is living in.
2. Even if rents did increase 11.9% in 12 months, they were falling in the two years before it.

Like Persius said, check with the local letting agencies/estate agents/daft and see can you find a better deal. If you can, you can either tell the landlord where to stick his 20% or else use the information to force him to lower his demands.
 
Check out alternative accommadation, I would think the landlord is using the fact that you only need it for another 6 mths as a means to jack it up too much. Tell him that you have found an alternative abode and see what his reaction is. If he has to leave the property vacant for a certain period that may focus his attention. There has been a absolutely huge increase in the supply of rental stock since March so I would try and point this out as well to him.

http://daftwatch.atspace.com/
 
Don't tell the landlord to stick it or move out in a huff and leave yourself at a loose end. Simply file a dispute with the PRTB with relation to the size of the rental increase, kick back and relax.

If they find in your favour the landlord will have to reimburse you. If they find in the landlords favour then that means you'll have been paying fair market value in rent, the same amount that you would have to pay if you move in somewhere else.

Either way you keep a room over your head at a fair rate and just as importantly you stay in control of the situation.

We all pay our taxes in order to have these bodies (PRTB) there to protect our rights. Use them. See your taxes do some work for you for a change.
 
if you negotiated a decrease at the start why feel so put out by the landlord putting rent up 3 years later, its only for six months, do you want the hassle and expense of moving for just 6 months?
 
The initial reduced rate of rent was due to the fact we were two people as opposed to a family or a group of singles. I have no issue with an increase as such as the going rate in the area has risen. But I have rented for enough years to know that its not every tenant that treats a rented house as a home down to cleaning the carpets! I feel that we are over a barrel due to our own circumstances and my only query was there a limit on the % increase on a property from one year to the next.
 
Raskolnikov said:
Two faults with that statistic.
1. It's an estimate for the entire country, not the particular area that the original poster is living in.
2. Even if rents did increase 11.9% in 12 months, they were falling in the two years before it.
Click to expand...

I take it you did not read the Daft report i refer to
You would have noticed that trend in rents are detailed in 8 zones accross the country incl. Cork and that rent in Cork have actually increased by 25% from 2004Q1 to 2007Q1 (at least based on daft). They have never fallen in Cork.
 
I have property in Cork and I have not increased any rents ever. I only do this when tenant's change if I think the market will pay for it. I think 20% in one go is outrageous. It's not relevant if they got a cheap rent initially - that's what the landlord agreed. If the landlord had say increased with inflation per annum that's fair enough. It was his/her choice not to increase in previous years. It's very hard to suddently expect people to pay one fifth more. Are people's salaries going up by 20% per annum - I think not.

Anyway we'll all be heading for a crash when the poles/lits & lats go back coz if this is a sign of rent increases it will not be justified working in Ireland with the high cost of living. I can't imagine what my tenant's would say if I decided to increase my rent by the 25% quoted for Cork. Conversely for me, looks like my tenant's will be staying as they're going to find it mighty hard to move as my rent will be so cheap in comparison with others.

I also believe that good long term tenants such as the OP who clean carpets and does the garden (wow) should be rewarded with not very high increases. Where does one find such gems. Only joking I've had very good and very bad experiences.
 
Aileen2 said:
... I think 20% in one go is outrageous...
Click to expand...

I don't see why. Your entitled to raise the rent in line with the market once every 12 months of a tenancy, even more often if theres been changes to the accomodation. Its not outrageous to maximise rental income, it just good business.
 
Call his bluff. Trust me, He does not want the hassle of looking for new tenants it will be a real headache for him. His interest rates are his problem and not yours. Be prepared to move but I reckon that if you say you will accept a 10% increase he will take.
Like I say call his bluff.
'It's just good business'..
 
barryo said:
Call his bluff. Trust me, He does not want the hassle of looking for new tenants it will be a real headache for him. His interest rates are his problem and not yours. Be prepared to move but I reckon that if you say you will accept a 10% increase he will take.
Like I say call his bluff.
'It's just good business'..
Click to expand...

Why not indeed.
 
barryo said:
Call his bluff. Trust me, He does not want the hassle of looking for new tenants it will be a real headache for him. His interest rates are his problem and not yours. Be prepared to move but I reckon that if you say you will accept a 10% increase he will take.
Like I say call his bluff.
'It's just good business'..
Click to expand...

I'm not sure how good this advice is. The landlord will have to get new tenants in 6 months anyway once the OPs house is built! I don't think he'd have a problem standing his ground, and then where would the OP be? Scratching round looking for a short term lease with the hassle of having to move twice in 6 months. It's all well and good being bolshi about something on an internet forum but the OP lives in the real world.

Leave it with the PRTB.
 
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