How To Conduct A Rent Review In a Rent Pressure Zone?
In this article we deal with conducting a rent review in a RPZ. Many changes have occurred to the process since the introduction of Rent Pressure Zones in 2016. What should be a simple task can sometimes be confusing given the number of recent changes imposed. We would like to remind you of the steps involved – for your rent review to be valid it is important that you are aware of the process.
On 11th December 2021, the rules were amended around setting the rent for a tenancy in a RPZ. In short, regulation prohibits any rent increase in a RPZ from exceeding general inflation (as recorded by HICP), there is now a new rule that provides that the rent cannot increase by more than 2% per year pro rata, where HICP inflation is higher.
The rules apply to:
- Setting of the rent for a new tenancy.
- Reviewing the rent during a tenancy.
When can I review the Rent in an RPZ?
- Following the designation of a Rent Pressure Zone, all existing tenants at the relevant date of designation are still covered by the 24 month rent certainty laws. Therefore, you must wait 24 months from the tenancy commencing or 24 months from the service of the last valid rent review notice before serving a further rent review.
- After this, you are entitled to review the rent every 12 months.
How Do I Review the Rent?
- Use The RPZ Calculator
To calculate the maximum rent increase permitted, if any, please use the RTB Calculator.
RPZ Calculator – Click HERE
Print off or save a copy of the relevant calculation provided by the calculator for your records.
- Complete the Notice of Rent Review Form
You must serve a notice of rent review – you must use the Notice of Rent Review form. The Notice of Rent Review is prescript and must be followed closely.
Do not deviate from the wording, change the format of the notice, or delete information – doing so could invalidate the Notice in full.
Click HERE for Notice of Rent Review Form
It is advised that you issue the rent review form the same day you do the calculation on the RTB Calculator.
Also attach and include a copy of the RTB Calculator calculations in your notice.
- Notice – 90 days’
A tenant must be informed of any review to the rent with at least 90 days’ notice.
- Comparable Properties
The rent being sought should not be more than local market rents for similar properties at the time.
You must provide the details of three comparable dwellings advertised in a comparable area (size, type, character, and address) and specify the amount of rent sought.
The date of the advertisement must be within the 4-week period immediately preceding the date on which your notice is served.
It is recommended you attach copies of the 3 advertisements to your notice.
- Update the RTB
Once a rent review has been carried out and the new rent has commenced, you should notify the RTB that the rent amount has changed. You need to do this within one month of the new rent taking affect.
You can do this by using a
- Tenancy Update Form
- through the RTB’s online portal
You must be in receipt of the new rent amount before an update to the rent amount can be applied to the registration.
Click HERE for Tenancy Update Form