When Your Rent Goes Up

at

cryingchair Private-Residential-Tenancies-Board

No point just sitting there crying.

Further to much concern among readers who rent.

With zero control, zooming prices and broken crying chairs littering Daft is there anything tenants can do if a landlord notifies them that their rent is being increased?

We asked Legal Coffee Drinker what’s it all about.

Broadsheet:  “Legal Coffee Drinker, what’s it all about?”

Legal Coffee Drinker: “It’s about landlords trying to get as much as they can out of tenants in an apparently rising rental market.”

Broadsheet: “Is this even legal?”

Legal Coffee: “Part III of the Residential Tenancies Act 2004 provides that a review of the rent under the tenancy may be effected by either party. Section 22 of the Act states that where the landlord reviews the rent, he must serve a notice in writing on the tenant stating the amount of the new rent and the date from which it is to have effect. If the tenant doesn’t challenge the reviewed rent, it takes effect 28 days from the date of the notice or the date on which it is stated to have effect, whichever is the latest.”:

Broadsheet:  “The tenant doesn’t have to accept the reviewed rent?”

LCD: “Absolutely not.  All residential tenants have the right to challenge a reviewed rent by making an application to the Private Residential Tenancies Board (‘the PRTB’) to have the Board determine whether it is really market rent. The tenant has 28 days from the date of receipt of the notice of rent review to make that application, which should be made by registering with the PRTB as a tenant [link below], submitting the Dispute Resolution Form available and paying the necessary fee of €15-25 (€15 Euros for online application; €25 for paper application).”

Broadsheet:  “And what happens then?”

LCD: “Well, once a dispute resolution form has been submitted, the dispute resolution in Part 6 of the 2004 Act comes into force. The parties are given a choice between having the correctness of the rent determined by mediation or arbitration.  Mediation involves both parties trying to agree the rent; arbitration involves an individual nominated by the PRTB listening to both sides and coming to a decision.  If either party is unhappy with the decision of the arbitrator, or if no agreement can be reached on mediation, the matter may be appealed/referred to a three-person body known as the Tenancy Tribunal, which will make the final decision. ”

Broadsheet: “And what sort of view is the Tenancy Tribunal taking on market rent?”

LCD:  “Difficult to say, as there have been very few applications challenging rent increases to date.  The Tenancy Tribunal will only approve a reviewed rent which is equal to or less than the rent the landlord would get for the premises on the open market.  Ideally each side should have examples of rents charged in respect of similar premises, which have been recently let in the area.”

Broadsheet: “So if all the landlord is looking for in the increase is the rent that he would genuinely get the premises for in the open market, there’s no point in challenging the review.”

LCD:  “Agreed.  If the increased rent is indeed the open market rent, the PRTB must uphold it.   But it’s up to the landlord to prove this.  And the PRTB generally is not unsympathetic to tenants, where there is room for doubt.

Also, the 2004 Act provides that the rent may not be reviewed at all during the first year of a lease or more often than once a year.  Rent reviews breaching these timelines can be struck down by the PRTB even if at market rent.”

Broadsheet: “Do you need a lawyer to take proceedings before the PRTB?”

LCD: “No. In fact the PRTB encourages parties to represent themselves or be represented by a friend.  It’s just a question of turning up and having your say. Threshold often provides volunteer advocates for tenants on request.”

Broadsheet: “Is there a risk that it will end up costing you money? ”

LCD:  [drains coffee] “Only the dispute resolution fee, your time spent, and the expense of any witnesses you bring along.   Although in theory the PRTB can make costs orders against parties, this is rarely exercised against the tenant – except maybe in cases where they fail to turn up for the hearing without excuse. ”

Broadsheet: “As it would demonstrate tardiness.”

LCD: “Right.”

Broadsheet: ” If you can’t even be bothered to show up for the hearing. Anarchy!”

LCD: “Are we done?”

Broadsheet: “We are. Thank you Legal Coffee Drinker. Hopefully you’ll be our  ‘friend’ at a future board hearing  if Karl’s mum starts charging us to use the den.

LCD: *click*

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36 thoughts on “When Your Rent Goes Up

  1. Cean

    “Only the dispute resolution fee, your time spent, and the expense of any witnesses you bring along. ”

    Is that right? I was sure if a dispute happens, the tenants pay their current rent. If the PRTB finds in favour of the landlord, the tenant has to payback the difference in rent also.

    1. FK

      And the tenant will have to move anyway because the landlord will make their life hell for bringing him/her to the PRTB. Waste of time.

        1. Stephanenny

          What about when your landlord isn’t registered with the PRTB? There are exceptions right? Like when the landlord has a kid living there too? Can you use the PRTB mediation then?

          1. The Old Boy

            If the landlord has a wheeze set up to stop him or her from having to be PRTB registered, such as having a child living there as a straw landlord or living there himself, your goose is effectively cooked.

  2. YourNan

    a useless tool, rent increases should only be justified by substantial renovations or improvements, “rental market value” will obvs go in the landlord favour as they are all increasing rents in a cartel style.

    1. Jess

      Exactly. If you have an area with many rented properties they are usually all controlled by one or two letting agencies and they just up the rent on all the properties and leave you no room to manoever

    2. read twice

      +1
      If a landlord can AFFORD to let a property at a given price one year, the only excuses for change are:
      (a) renovations/improvements
      (b) regulatory costs, including, imho, the property tax
      (c) inflation
      The “market” is not a cost to the landlord. “Opportunity” was lost when they signed the lease.

  3. Legal Coffee Drinker

    Well, yes, but you would be liable for that anyway if you didn’t challenge the rent set.

    If you can manage it, you should probably set aside the difference in case the tribunal finds against you.

    1. Legal Coffee Drinker

      Sorry, that was a response to Cean above.

      The purpose of the PRTB supervisory mechanism is to make sure that the tenant pays no more than the market entitles the landlord to, which should naturally obviate the effect of rent cartels. Provided tenants know about and use the mechanism, that is.

      1. sickofallthisbs

        What happens if you drink coffee that has been smuggled over the border? What does that make you?

    2. Cean

      Yes, that was my point that if the PRTB found against you.

      Just more for the “Is it worth fighting this or moving”.

  4. Clampers Outside!

    Is Joan Burton a landlord herself, and if so, are details of her properties available…. just wondering if our Minister for *cough* Social Protection actually has the people in mind first, actions to date would suggest otherwise.

    1. dhaughton99

      How dare you question whether your Minister for Social Protection is a Labour/FG slumlord.

      For shame.

      1. Clampers Outside!

        Thanks for that clarification. It was said she had a load of property, and my source was ‘bar stool gossip’ …which we all know is the real news, but only in Blottoland.

        Thanks.

    2. Joe the Lion

      Joan Burton is an absolute nightmare, I watched her performance on that clare byrne rubbish the other night and I said to myself is this the only way a woman can get to the top by shouting down people?

  5. andyourpointiswhatexactly

    Got a letter from our letting agents today. I honestly haven’t been as nervous opening an envelope since the aul Leaving Cert results. It went up by 50 snots a month. It hasn’t gone up in 3 years, so I figure that’s fair enough. PHEW. I was expecting it to go up by 300, really.

  6. ollie

    government screws landlords with a myriad of additional taxes, landlord screws tenants with rent increase.

        1. Banotti

          No it isn’t. Please tell me how these increased costs are affecting supply and demand and setting the market rate?

  7. L

    Crazy that a landlord can just bump the rent like that. The city I’m living in at the moment only allows 1 rent increase every 12 months and only at the rate of inflation (2-3%). If the landlord decides to boot a tenant out they have to prove that they are selling the property and the tenant has the first right of refusal on purchasing.

    1. read twice

      Go on then. Tell us!

      What city do you live in? What’s with the big secrecy vibe?

      I’ll guess Berlin, if I’m not gonna get shot or someth.

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