Property clinic: My Lease is due for renewal

Rent certainty

Q My lease is due for renewal and I have been waiting to hear whether or not our rent will be increased, but I’m getting a little impatient. I have been advised to approach the landlord – a large property firm – directly to indicate that we wish to stay in our property. Would this be advisable? What should I outline in an email like this?

A Yes there is a lot of discussion regarding rent increases through the media, etc these days and I can understand your concern regarding same. However, in December 2015 the Government introduced the Residential Tenancies (Amendment) Act 2015. Part of the purpose of this Act was to bring about “rent certainty” and therefore a landlord can now only increase the rent once in any 24-month period, and cannot increase within 24 months of the beginning of the tenancy except in limited circumstances such as a complete refurbishment of the property, which affects the market rent of the dwelling. Unfortunately, as you have not indicated when you first signed the lease I cannot advise whether or not the landlord would be entitled to increase the rent in October 2016.

The Residential Tenancies (Amendment) Act 2015 also prohibits the landlord from setting a rent that is in excess of market rent. Market rent is defined in section 24 as “the rent which a willing tenant not already in occupation would give and a willing landlord would take for the dwelling”. The Private Residential Tenancies Board (PRTB) publishes a quarterly index of rents, which you can use to check current market rents. If a landlord intends increasing the rent, they must inform you, in writing, of any increase in rent, 90 days before the increase is due to take effect. A valid notice served by the landlord must state the amount of rent and the date to which it is to have effect. A landlord is also required to notify the PRTB of the revised rent so that the registration details can be updated.

Where a valid notice of a rent review has been served by the landlord, either party can submit a dispute to the PRTB before the new rent is to have effect or within 28 days of the tenant receiving that notice, whichever is the later. There is no time limit where an invalid notice is served. Karol Jackson is a chartered residential agency surveyor and member of the Society of Chartered Surveyors Ireland scsi.ie

Renter credit check

QI have been renting a house for more than 16 years now and I’m currently in the process of looking for a new property to rent. A couple of the prospective landlords have asked me to provide them bank statements, which is new. I understand the rationale, but I’m wondering is there any legal requirement to provide this? It feels very intrusive and I have concerns about where this information would be stored. I have no problem providing a previous landlord and work reference as standard practice. I have a good job so I’m not sure why it’s required that I provide personal details about my finances also.

AThe rental market has changed dramatically in the last few years, and as a practitioner for nearly 40 years, it is unrecognisable from when I started. The market has become much more sophisticated in the intervening years, with a change from the single-unit landlord to corporate-portfolio businesses. From a landlord’s perspective, seeking a prospective tenant’s financial details or bank statements serves a number of purposes. It helps establish their identity as per their passport/driving licence and also whether the rental payments that they are committing to are affordable.

In other jurisdictions, for example, it is standard for a credit check to be carried out on a perspective tenant. In the UK, the agent charges the tenant for the credit check and levies an administration fee for the service.

In Paris, the tenant must provide financial information that their net income is at least equal to three times the rental payments. These types of financial status checks have not yet arrived in Ireland but will most likely become a feature of tenancy vetting in the near future.

To answer your question, I would usually rely on employers’ and landlords’ references for a tenant with such an established track record. My clients may ask me to obtain bank statements where I am dealing with a tenant who has started a business and does not yet have audited accounts or worked abroad. I would suggest that you ask the agent/landlord with whom you are dealing about how they propose to use and keep your financial information to ensure that it is secure.

Kersten Mehl is a chartered residential agency surveyor and member of the Society of Chartered Surveyors Ireland scsi.ie