by Owen Burt
When looking to rent a property in Ireland, it is vital that you know whether or not your dwelling is in a Rent Pressure Zone.
Your property being in a Rent Pressure Zone can effect the amount of rent that you charge, how often you review it and if you are exempt from rent limits.
To help, we have put together this comprehensive guide on Rent Pressure Zones in Ireland…
What is a Rent Pressure Zone?
Why were Rent Pressure Zones introduced in Ireland?
How are Ireland Rent Pressure Zones Decided?
Where are the Rent Pressure Zones in Ireland?
How do I set my rent in a Rent Pressure Zone?
What is the RPZ Formula?
Rent Pressure Zone rent limit exemptions
Rent Pressure Zone Rent Reviews
Also known as RPZs, Rent Pressure Zones are areas in Ireland that control the amount of rental properties in business. The number of rents in Rent Pressure Zones cannot increase by more than 4% per year, and apply to both new and existing properties, with a few exemptions.
Rent Pressure Zones in Ireland are introduced to locations with a high and rising number of rental properties, and where finding affordable living accommodation is becoming increasingly difficult.
Ireland Rent Pressure Zones were put in place to moderate the increase in rents within that area, creating a steady rental market.
There are 2 main criteria that make an area in Ireland an RPZ:
As well as this, 3 different rent averages were introduced in June 2019, to be used when assessing each area. These are:
If your tenancy was already in place at the time of your area becoming a Rent Pressure Zone, it will remain under the current rent measurements until your next rent review (every 24 months).
There are 5 Local Authorities and 39 Local Electoral Areas that are Rent Pressure Zones in Ireland, which will stand until December 31st 2021. The dates below indicate when each area met the criteria to become a Rent Pressure Zone:
New tenancies in an Ireland Rent Pressure Zone must set their rental rates alongside the RPZ formula. The only exception is if your property is excused from rental restrictions.
The rental rate must not be set above the amount for similar properties in the area, and examples of 3 properties in the same area and similar in style are to be presented to indicate this.
New tenancies in RPZs must begin with the following information being presented to the tenant:
When setting the rent amount in a Rent Pressure Zone, it cannot be:
Use the Residential Tenancies Board’s RPZ Calculator to discover if your property is in a Rent Pressure Zone, and if so, what the maximum rent you can charge is.
The RPZ Formula is: R x (1+0.04 x t/m)
The values in the RPZ formula represent the below:
Rent limits in Rent Pressure Zones are exempt in 3 circumstances:
If you are looking to get a exemption from rent limits on your property in a Rent Pressure Zone, you must inform the Resedential Tenancies Board 1 month before the rent amount is set.
A rent review can be requested by both a tenant or a landlord, which can either increase or decrease the amount of rent paid. The rules regarding rent reviews in Rent Pressure Zones can differ depending on if they tenancy is new or already existing.
Tenancies that began before December 24th 2016 are classed as existing. Existing tenancies in Rent Pressure Zones can undergo the first rent review either 24 months since the tenancy began, or 24 months since your last review.
The rent can be increased by a maximum of 2% per year since the last amount was set, so potentially 4% at each rent review.
If it has been longer than 24 months since the rent was last set, the new amount can be increased by 2% for each additional year until 2016.
Tenancies that began after December 24th 2016 are classed as new. New tenancies in Rent Pressure Zones can review the rent amount every 12 months, whereby the maximum increase is 4%.
I joined Sykes in June 2017, straight after graduating from the University of Derby with a degree in Journalism.
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