Are You A Compliant Landlord? Changes To Be Aware Of!

There have been a number of changes in recent legislation (June 2019).  To be a compliant Landlord, you need to be aware of theses changes.  Changes in the legislation are both complicated and complex.

 

  • Rent Reviews – Legislation around rent reviews has changed.   There are new requirements in the notice;  ensure that you are using the latest notice which is available here.   The change commenced on the 1st July, any rent review carried out on or after that date must contain the new items.   Rent reviews served prior to 1st July 2019,  correctly completed, abiding by the legislation in place at that time should be valid.

 

  • New Rent Pressure Zones came into effect on the 2nd July 2019.   All tenancies in these areas are now under the Rent Pressure Zones.  The designated areas are based on Electoral Areas, and may include other villages and rural areas that you might not expect.  If you input the address of a rental property into the RPZ Calculator on the RTB’s website, it will indicate if a property is in a Rent Pressure Zone.  If you are letting in a Rent Pressure Zone, the new rent is predicated on the rent previously charged, unless there has been no tenancy for the two years prior to the commencement date of the new tenancy.

If a property was advertised for letting prior to the introduction of  Rent Pressure Zones, but not let, the rent will be predicated on the            previous rent not the advertised amount.  EG.  John advertised a property in Middleton at €1100 on the 24th June but had not let the              property on the 2nd July when the area was designated a Rent Pressure Zone.  The previous rent was €700 set five years ago, the most            this property can be now be let for is €840.    R x (1 + 0.04 x t/m)  €700 x ( 1 + 0.04 * 60/12) = €840.00.

If you purchase a property in a Rent Pressure Zone, your rent is predicated on the previous rent unless there has been no tenancy for              the two years prior to your first letting.

 

  • Substantial Refurbishment  – Refurbishment/Change works that commenced on or after 4th June 2019, must comply with the new legislation if there is an intention to increase the rent to market rate.

If works commenced prior to the 4th of June 2019 you are subject to the legislation in place prior to the Residential Tenancy                            (Amendment) Bill 2019. The RTB previously provided guidance with regards to what is a substantial change in the nature of the                        accommodation, this guidance is now only relevant to works commenced before the 4th June 2019 – we suggest that you consult this.

Click HERE.

Please note under the previous legislation if works are completed within 6 months you must offer the property back to the previous                    tenant(s).

 

Unsure About Any Of The Above – Contact Us Now @ info@ipoa.ie

Categories: First Time Landlord, Landlord Legislation, and Property Management.