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Youghal was allocated Rent Pressure Zone status in July 2019 alongside Midleton in what is known as The Midleton Electoral Area.
What does this mean for landlords?
In simple terms it means that landlords can only increase the rent yearly by no more than 4%. Sounds straight forward, however, the annual 4% increase only applies to tenancies that commences after our designation as an RPZ. If your tenancy commences prior to this designation you must first wait until the previous rule of 2 years has passed before you can implement a Rent Review on an existing tenancy. And the 4% does not apply to both the previous years. Sounds confusing right?
The foolproof method for knowing if you can issue a review and how much you can increase it to is to use the RPZ Calculator which can be found here. You’re not done just yet!!!
You need to be able to provide 3 comparable properties along with this calculation to show that you’re not charging above market rent and with so few properties on the market this can be a major challenge even for us as agents.
Firstly the property needs to have been let in the 28 days preceding the rent review or currently on the market for rent.
The property needs to be of a similar size, type and character,( a two bed apartment is not comparable to a one bed, a house is not comparable to an apartment
The area needs to be comparable, ideally in the same area but not necessary . a 3 bed property in one rural town can be compared with a 3 bed property in another rural town.
The RPZ Get out of Jail Free Card,
Just like Monopoly you either have it or you don’t! Trying to fit square pegs into round holes doesn’t work here but if you can qualify for an RPZ exemption if you fit the following criteria
Exemption 1: The initial setting of the rent on a dwelling which had not been rented for a period of two years prior to the immediate tenancy commencement date. All rent reviews thereafter must adhere to the Rent Pressure Zone formula.
Exemption 2: A ‘substantial change’ in the nature of the accommodation has occurred …. Painting the property, laying new flooring or tiling a bathroom isn’t going to cut it I’m afraid. To cut the mustard on this one you need to be building an extension, increasing the BER by at least 2, increasing the number of rooms or floor area. Planning Permission is usually required for exemption 2 to be applicable
Right that’s you ready to go, all you need now is to download the latest Rent Review Template from the RTB website complete it and send it along with 90 days notice…right? Wrong, see that 90 days, make him somewhere between 92 and 95, most reviews are deemed invalid on this little catch.
Lastly don’t forget to record that it was sent, you don’t have to prove that it was delivered but just that it was sent.
Bloomfields Property Services
Tel: 024 90044
Bloomfields have built a reputation on providing first class property services in Youghal, East Cork, whilst maintaining your best interests at all times.
We specialise in property sales, lettings, maintenance and management. We manage multi block units such as large housing developments, apartment blocks and individual properties. We also manage a large number of Holiday Homes to an approved 4 Star Standard. Read more about us here.
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