What Landlords Need To Know About Rent Increases And Substantial Refurbishment

Works can be carried out to your rental property but if they do not meet the definition of Substantial Change below –  a Landlord cannot increase the rent.

Please take notice of these rent increase rules.

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.

The definition is as follows: 

A substantial change in the nature of the accommodation provided under the tenancy shall only have taken place where—

(a) the works carried out to the dwelling concerned—

(i) consist of a permanent extension to the dwelling that increases the floor area (within the meaning of Article 6 of the Building Regulations 1997 (S.I. No. 497 of 1997)) of the dwelling by an amount equal to not less than 25 per cent of the floor area (within such meaning) of the dwelling as it stood immediately before the commencement of those works,

(ii) in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply, result in the BER (within the meaning of those Regulations) being improved by not less than 7 building energy ratings,

or

(iii) result in any 3 or more of the following:

(I) the internal layout of the dwelling being permanently altered;

(II) the dwelling being adapted to provide for access and use by a person with a disability, within the meaning of the Disability Act 2005;

(III) a permanent increase in the number of rooms in the dwelling;

(IV) in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply and that has a BER of D1 or lower, the BER (within the meaning of those Regulations) being improved by not less than 3 building energy ratings; or

(V) in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply and that has a BER of C3 or higher, the BER (within the meaning of those Regulations) being improved by not less than 2 building energy ratings.

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  • If substantial works were started before 4th June 2019 the old definition applies.
  • If no tenancy has been in a property for two years immediately preceding, it can be rented out at market rent.

Still unsure about this new legislation?  Submit your query to us @  info@ipoa.ie

Categories: Landlord Legislation, Property Management, and Rent Increases.