Landlords say a government plan to stabalise the cost of rent will actually send prices rising higher.
The Environment Minister wants to limit hikes to every two years, and landlords will be required to prove the increase is justified.
The Irish Property Owners Association says there will be administrative costs to providing that proof, which may be passed on to tenants. Margaret McCormick said "Three comparable properties when increasing takes time and energy to produce”.
“And in so doing, it increases the costs of the accommodation because of the additional administration involved”.
The housing agency, Threshold, has given a cautious welcome to the plan. Bob Jordan said "at the moment we're dealing with about 50 calls a day from tenants who feel that they're going to lose their homes because they can't afford a rent increase".
"What it means is the people that came to us in June of this year that we managed to keep in their homes won't be facing the same problem next year".
"So tenants are going to get a breathing space, we think it's a very good thing”.
The Environment Minister is expected to bring the proposals to cabinet on Tuesday.
The Finance Minister says the government is working fast to stop landlords raising rents now, before the new restrictions come in.
The Private Residential Tenancies Board says it's already being contacted by tenants who have heard from their landlords today about immediate price hikes.
The PRTB has released this statement, which it wants to bring to the attention of all tenants and landlords.
It outlines how the law currently stands:
A Landlord (or Receiver) can only increase the rent once in any 12 month period, and cannot increase within 12 months of the commencement of the tenancy. If a landlord intends increasing the rent, they must inform the Tenant, in writing, of any increase in rent, 28 days before the increase is due to take effect.
The Residential Tenancies Act 2004 prohibits the landlord from setting a rent that is in excess of “market rent” and any changes must be in line with market rent. Market rent is defined as a rent that a willing tenant not already in occupation would give, and which a willing landlord would take for the dwelling, having regard to other terms of the tenancy, and the letting values of dwellings of a similar size, type and character to the dwelling and situated in a comparable area to that in which it is situated.
If a tenant considers that they are being asked to pay more than the market rent, having regarding to the above, s/he can take a dispute case to the PRTB within 28 days of receipt of receiving notice of the increase or before the rental increase is due to take effect, whichever is the later, for a fee of €15 for on-line application or €25 for a paper application. Please note that the tenant must continue to pay their rent (i.e. at the current rate), until the case has been determined.
