Rent review query.

I have 1 rental property in a rural area .Same tenants for last 4 years. Rent kept low at 550 euro for 3 years. Increased it 50 euro last November 2021. I have a tracker mortgage which increased 125 euro per month recently. Am I correct in saying that I cannot increase the rent until November 2023 two years after last increase in November 2021? Which will only come into effect 3 months further on in February 2024. Should I be content that I can claim 100% mortgage relief? Most other properties in the area are 300 euro + more than mine.

Haille said:

I have 1 rental property in a rural area .Same tenants for last 4 years. Rent kept low at 550 euro for 3 years. Increased it 50 euro last November 2021. I have a tracker mortgage which increased 125 euro per month recently. Am I correct in saying that I cannot increase the rent until November 2023 two years after last increase in November 2021? Which will only come into effect 3 months further on in February 2024. Should I be content that I can claim 100% mortgage relief? Most other properties in the area are 300 euro + more than mine.

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A rent increase can only be carried out once every two years outside an RPZ and, yes, it only comes into effect 3 months later.

@Haille

With the rules now in force there is a "use it or lose it" aspect. When you increase always make sure you increase to the maximum possible as you can never claw it back.

The calculator is on the RTB website.

You can increase to market rent as you do not appear to be in an RPZ are. You have still to give 3 months notice.
If the last increase in rent took effect on 1st November 2021 you will need to be giving your Tenants a notice of increase in the last few days of July 2023. That is assuming there are no new changes prior to that. That is probably a big assumption

May I offer a practical rather than legal suggestion.

Ring the tenant up explain that your mortgage costs are increasing, its been a year since the last increase, and you need to look at the rent again.

Then say that you were thinking of another €50.

The tenant may quote the RTB at you, but more likely I suspect they will see that as a reasonable increase and go with it.

Final suggestion, ask for the increase from January 'when Christmas is over' is a lovely phrase.

As my tenant is a HAB tenant I assume the Council will not allow an increase on their part even though when I increased the rent by 40 euro in Sept.2021 the tenant absorbed the increase there was no increase in payment from the council.

I presume your tenant is on the HAP scheme so your tenant will inform the Council of whatever the increase is and depending on the household income of your tenant is the Council may absorb all or portion of the increase. There must be 2 years from the last time the current rent took effect and the new rent taking effect. Your tenant should notify the Council of the increase and it is a matter then between the council and your tenant. I presume that the rent is in line with prevailing rates for similar properties in the area where your house is situated. You must give 3 months notice of when the new rent takes effect from.