Dublin is a Rent Pressure Zone (RPZ) since December 2016 and this means there are restrictions when it comes to rent reviews.
The basic rules and formula have not changed, however there are a couple of scenarios that are new to 2019 which may need to be explained.
First of all, landlords and tenants should note two things.
- If the tenant moved in on/after 01st January 2017, the landlord may now review the rent by 4% every 12 months. If the landlord does not review the rent after year 1, they may review it by 8% after year 2, 12% after year 3 and so on.
- If the tenant moved in or has not had a rent review since before 01st January 2017, rent reviews are more complicated. This is explained further down.
The formula (below) is quite simple except for one element which is the ‘m’. Simply put, the ‘m’ is 24, if the tenant moved into the property before 01st January 2017, and the ‘m’ is 12 if the tenant moved in after 01st January 2017.
Here are four examples showing how the ‘m’ makes a difference when calculating a review:
- A tenant has lived at a property since 2012 and has not had a rent review since 2016. The rent was reviewed 01 February 2016 to €1500 per month, and the new rent will take effect 01 July 2019.
- A tenant has lived at a property since 2012 and has had a rent review in 2017. The rent was reviewed 01 February 2017 to €1500 per month, and the new rent will take effect 01 July 2019.
- A new tenant moved into a property on 01st March 2017 and had not had a rent review since then. The rent is €1500 per month, and the new rent will take effect 01 July 2019.
- A new tenant moved into a property on 01st November 2014 and had not had a rent review since then. The rent is €1500 per month, and the new rent will take effect 01 July 2019.
If you have any questions, get in touch.
Note: This guide is for information purposes only. You should always seek legal advice and never execute any documents without having first having sought advice.