The rent must not be higher than the market value rent which a willing landlord would agree and which a willing tenant would pay for a vacant property of a similar size, type and character in the same area and on the same terms and conditions. The rent may not be reviewed more than once a year unless there has been a substantial change in the nature of the accommodation.
Either party can seek a rent review. At least 28 days’ notice must be given of rent revision. A dispute about the market review can be referred to the Tribunal. In deciding the rent, the financial circumstances of the landlord and tenant may not be taken into account.
A landlord may recover arrears of rent under the dispute resolution procedures in the Act. This appears to be the exclusive mechanism for the recovery of rent under a residential tenancy.
Every person entitled to any rent in arrears or to be paid other charges under a tenancy of a dwelling (whether in his or her own right or as personal representative of a deceased landlord) shall be entitled to recover, under Part 6, such arrears or charges from the person who occupied the dwelling as a tenant in the period in which the arrears accrued or the charges arose or, as may be appropriate, from the person’s personal representative.
No more than Market Rent
The rent payable may not be greater than the open market rate as defined. Rent reviews should be no more frequent than once a year (now two years) unless there has been a substantial change in the nature of the accommodation in the interim. Rents may be reviewed upwards or downwards. There are some provisions relating to disputes about rents.
An initial or reviewed rent may not be an amount greater than the market rent. Rent reviews may take place no more frequently than once a year unless there has been a substantial change in the nature of the accommodation in the interim. The period is two years for most tenancies since the 2015 Act came into force. Either party to seek a rent review where provision is not made for one by way of a lease or tenancy agreement.
Market rent is the rent that a willing tenant would give and a willing landlord would take for vacant possession having regard to the other tenancy terms and the letting values of dwellings of a similar size, type and character and located in a similar area. The definition is based on that applying to ‘‘gross rent’’ in the Landlord and Tenant (Amendment) Act 1980 (the 1980 Act). It also defines references in Part 3 to reviews of rent and setting of a rent.
Rent Pressure Zone
The rent under a tenancy of a dwelling in a rent pressure zone shall not be greater than the amount determined by the formula R x (1 + 0.04 x t/m). This generally caps the rent increase at 4%.
- m is 24, for the first review of a pre-24th December 2016 tenancy or 12, in any other case,
- R is the amount of rent last set under a tenancy for the dwelling,
- t is generally the number of months between the date the current rent came into effect under a tenancy for the dwelling and the date the rent for the tenancy of the dwelling will come into effect after its determination on review
If m is not 24 but the dwelling was previously let, other than where the below exception applies, t is the number of months the number of months between the date the rent became payable under a tenancy for the dwelling as last so let, and the date the rent for the tenancy of the dwelling will come into effect after its determination
The is applies where
- a dwelling has not at any time been the subject of a tenancy during the period of 2 years prior to the date the area is prescribed as a rent pressure zone or deemed to be so prescribed;
- if, in the period since the rent was last set under a tenancy for the dwelling a substantial change in the nature of the accommodation provided under the tenancy occurs, and the rent under the tenancy, were it to be set immediately after that change, would, by virtue of that change, be different to what was the market rent for the tenancy at the time the rent was last set under a tenancy for the dwelling.
Rent Pressure Zones
A ‘ rent pressure zone ’ means an area prescribed by the Minister by order as a rent pressure zone under that section, or
in respect of an areas deemed to be so under the Act
As of March 2018 the rent pressure zones are
- Ballincollig – Carrigaline, Co. Cork
- Galway City Central
- Galway City East
- Galway City West
- Celbridge – Leixlip, Co. Kildare
- Naas, Co. Kildare
- Kildare – Newbridge
- Ashbourne, Co. Meath
- Laytown – Bettystown, Co. Meath
- Rathoath, Co. Meath
- Bray, Co. Wicklow
- Wicklow, Co. Wicklow
- Dublin City Council
- South Dublin County Council
- Dun Laoghaire/ Rathdown County Council
- Fingal County Council
- Cork City Council
- Greystones, Wicklow County Council
- Drogheda, Louth County Council
Housing Authority / Housing Body
In setting the rent under the tenancy of a dwelling provided or supported by a housing body or housing authority the amount of rent under the tenancy of a dwelling shall be determined or reviewed in accordance with the contract or lease or the terms of the relevant assistance.
The rent review for such dwellings shall be carried out in accordance with the tenancy agreement relating to the tenancy of the dwelling. Where a tenancy agreement referred does not include provision for a review of the rent of a dwelling , either party may require a review of the rent under the tenancy to be carried out for the purpose of setting the rent.
A review shall not be carried out more than once in any 12 month period.
Frequency of Rent Reviews
A review of the rent under the tenancy of a dwelling may not occur more frequently than once in each period of 12 months, nor in the period of 12 months beginning on the commencement of the tenancy. This applies notwithstanding any provision to the contrary in the lease or tenancy agreement concerned.
The limitation does not apply despite the fact that a period of less than 12 months has elapsed from the last review of the rent under the tenancy, or the commencement of the tenancy, if, in that period—
- a substantial change in the nature of the accommodation provided under the tenancy occurs, and
- the rent under the tenancy, were it to be set immediately after that change, would, by virtue of that change, be different to what was the market rent for the tenancy at the time of that last review or the commencement of the tenancy, as the case may be.
If the lease or tenancy agreement concerned does not provide for such a review or the tenancy concerned is an implied one, either party may, , require a review of the rent under the tenancy to be carried out and a new rent, if appropriate, set on foot of that review.
Tenant to be notified of new rent.
The setting of a rent pursuant to a review of the rent under a tenancy of a dwelling and which is otherwise lawful under the Act shall not have effect unless and until at least 90 days before the date from which the new rent is to have effect, a notice in the prescribed form ]is served by the landlord on the tenant stating the amount of the new rent and the date from which it is to have effect and the matters specified below.
The notice shall state the amount of the new rent and the date from which it is to have effect, include a statement that a dispute in relation to the setting of a rent pursuant to a review of the rent under a tenancy must be referred to the Board under Part 6 of the Act before the date stated in the notice as the date from which that rent is to have effect, or the expiry of 28 days from the receipt by the tenant of that notice, whichever is the later.
It shall also include a statement by the landlord that in his or her opinion the new rent is not greater than the market rent, having regard to the other terms of the tenancy, and letting values of dwellings of a similar size, type and character to the dwelling that is the subject of the tenancy, and situated in a comparable area to that in which the dwelling the subject of the tenancy concerned is situated.
It shall also specify, the amount of rent sought for 3 dwellings of a similar size, type and character to the dwelling that is the subject of the tenancy, and situated in a comparable area to that in which the dwelling the subject of the tenancy concerned is situated.
It shall include twhere the dwelling is in a rent pressure zone state how the rent set under the tenancy was calculated having regard to rent cap provisions or it they do not apply, state why they do not apply.
The notice shall be dated and shall be signed by the landlord or his or her authorised agent.
The ‘ amount of rent sought ’ means the amount of rent specified for the letting of a dwelling in an advertisement the date of which falls within the period of 4 weeks immediately preceding the date on which the notice is served.
A dispute in relation to a rent must be referred to the Board under Part 6 before the date stated in the notice as the date from which that rent is to have effect, or the expiry of 28 days from the receipt by the tenant of that notice, whichever is the later.
Where, following a review of rent under , there is a change in the amount of rent, the landlord shall notify the tenant of the amount of rent set following that review in accordance with the tenancy agreement or where there is no such provision in the tenancy agreement, as soon as practicable.
Rent pressure zones
The Housing Agency, following consultation with the relevant housing authority, may make a proposal in writing to the Minister that an area be prescribed by order as a rent pressure zone. As soon as practicable, but no later than 1 week after the date of receipt of the proposal , the Minister shall request the Director to make a report to the Minister in such form as the Minister may approve, on whether, in so far as the area the subject of the proposal is concerned, the criteria specified below for designation as a rent pressure zone are satisfied.
Within 2 weeks after the date that the Minister made the request, the Director shall furnish the Minister with the rent zone report. In making a rent zone report to the Minister, the Director shall confirm whether or not the following criteria have been met —
- the information relating to the area concerned, as determined by reference to the information used to compile each Rent Index quarterly report, shows that the annual rate of increase in the average amount of rent for that area is more than 7 per cent in each of at least 4 of the 6 quarters (each being a period of 3 months that is contemporaneous with the period to which the Rent Index quarterly report concerned relates) preceding the period immediately prior to the date of the proposal by the Housing Agency to the Minister , and
- the average rent for the area in the last quarter, as determined by reference to the manner referred to in paragraph (a) , is above the average national rent (commonly referred to as the Rent Index national standardised rent) in the last quarter.
The Minister may, on a recommendation from the Housing Agency, by order revoke an order made.
In making a recommendation , the Housing Agency shall consider and provide a report to the Minister, on such matters as may be prescribed having regard to —
- the operation of the rental market,
- the operation of the housing market, and
- changes in rent levels in the period since the area concerned was designated as a rent pressure zone;
- and, before making such a recommendation and providing a report under this subsection, the Housing Agency shall consult with the Board and the housing authority concerned on the matter.
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