Rent REviews in RPZ's

ISSUING A RENT REVIEW  IN A RENT PRESSURE ZONE.

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 LANDLORD?

In simple terms it means that landlords can only increase the rent yearly by no more than the rate of inflation (previously this was set at 4%). Sounds straight forward, however, the annual  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 increase does not apply to both the previous years. Sounds confusing right?

Step 1. Comparables

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.

Choosing Comparables

Firstly the property needs to have been advertised for 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.

Step 2. RTB &RPZ

Visit the RTB’s RPZ Calculator here to make sure you’re charging the correct amount.

From there complete the latest RTB Prescribed Rent Review Form. You can download the July 2021 version here.

Step 3. Date & Delivery

Right that’s you ready to send! How much notice to I need to give from today? 90, 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. Post it yourself, take a photo of it going in the letter box or sent by An Post with recorded delivery.

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.

If you need help in managing your tenancy contact Katrina on 0877030492 or email me directly k.griffin@bloomfields.ie.

If you would like to find out more about Bloomfields Property Services, talk to us on 024 90044.

Disclaimer: While Bloomfields Property Management make every reasonable effort to provide information that is as comprehensive, accurate and clear as possible, the information provided on this site is necessarily of a general nature  It should not be taken as legal advice and users should consult the relevant authority  for the most up to date information. 
Contact

Bloomfields Property Services
Cois Bloom
Quarry Road
Youghal
Co. Cork
Tel: 024 90044

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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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