Rent

Rent Overview

The rent must not be higher than the market value rent which a willing landlord would agree and which a willing tenant would pay for a vacant property of a similar size, type and character in the same area and on the same terms and conditions.

The rent may not be reviewed more than once a year unless there has been a substantial change in the nature of the accommodation. This period is usually two years outside a rent pressure zone.

Either party can seek a rent review. At least 28 days’ notice must be given of rent revision.

A dispute about the market review can be referred to the Tribunal. In deciding the rent, the financial circumstances of the landlord and tenant may not be taken into account.

Rent Recovery

A landlord may recover arrears of rent under the dispute resolution procedures in the Act. This is designed as the exclusive mechanism for the recovery of rent under a residential tenancy where the rent arrears are less than the threshold figure (€60,000).

Every person entitled to any rent in arrears or to be paid other charges under a tenancy of a dwelling (whether in his or her own right or as personal representative of a deceased landlord) is entitled to recover, such arrears or charges from the person who occupied the dwelling as a tenant in the period in which the arrears accrued or the charges arose or, as may be appropriate, from the person’s personal representative.

No more than Market Rent

An initial or reviewed rent may not be an amount greater than the market rent. Rent reviews may take place no more frequently than once a year unless there has been a substantial change in the nature of the accommodation in the interim. The period is two years for tenancies outside rent pressure zones since the 2015 Act came into force.

Either party to seek a rent review where provision is not made for one by way of a lease or tenancy agreement.

Market rent is the rent that a willing tenant would give and a willing landlord would take for vacant possession having regard to the other tenancy terms and the letting values of dwellings of a similar size, type and character and located in a similar area.

In the case of a tenancy of a dwelling in a rent pressure zone the landlord must furnish the tenant, in writing, with the following information at the commencement of the tenancy:

the amount of rent that was last set under a tenancy for the dwelling;
the date the rent was last set under a tenancy for the dwelling;
a statement as to how the rent set under the tenancy of the dwelling has been calculated having regard to the restrictions applicable.

Deposit

In the case of tenancies created after one month from the enactment of the Residential Tenancies (no.2) Act 2021 the total amount that a tenant is obliged to pay, to a landlord by way of a deposit or advance rent payment to secure a tenancy, to no more than the equivalent of 2 months’ rent.

A restriction of the equivalent of 1 month’s rent is also placed on the amount that a tenant is obliged to pay as a regular advance rent payment to a landlord during a tenancy. Provision is made for a student residing in student-specific accommodation to choose to pay a greater amount of advance rent if he/she so wishes.

A deposit shall not be required to be returned or repaid if, at the date of the request for return or repayment, there is a default in—

the payment of rent, or any other charges or taxes payable by the tenant in accordance with the lease or tenancy agreement and the amount of rent or such other charges or taxes in arrears is equal to or greater than the amount of the deposit, or
compliance with the repair/non-deterioration obligations and the amount of the costs that would be incurred by the landlord were he or she to take them, in taking such steps as are reasonable for the purposes of restoring the dwelling equal to or greater than the amount of the deposit,

Where the amounts concerned are less than the deposit then there shall only be required to be returned or repaid the difference between the amount of rent or such other charges or taxes in arrears or the cost to restore the dwelling house.

Deposit Protection Scheme

The Residential Tenancies (Amendment) Act 2015 provided for the establishment of a tenancy deposit protection scheme to be operated by the Residential Tenancies Board (RTB). It was intended that deposits would be lodged with the RTB and managed by it.

The scheme was intended to be self-financing by means of interest on the deposits. This ceased to be viable under financial market conditions. Ultimately, The proposal was never commenced in law. The Residential Tenancies Act 2019 repealed the deposit provisions in the 2015 legislation.

Rent Prepayment

A person shall not be required the purpose of securing a tenancy to pay other than an advance payment of rent not greater than one months rent and deposit not greater than one months rent.

A tenant of a student letting may make an advance payment of more than one month by agreement. This does not apply to a tenancy created before the operative date for the 2021 act.

Housing Authority / Housing Body

In setting the rent under the tenancy of a dwelling provided or supported by a housing body or housing authority the amount of rent under the tenancy of a dwelling shall be determined or reviewed in accordance with the contract or lease or the terms of the relevant assistance.

The rent review for such dwellings shall be carried out in accordance with the tenancy agreement relating to the tenancy of the dwelling. Where a tenancy agreement does not include provision for a review of the rent of a dwelling , either party may require a review of the rent under the tenancy to be carried out for the purpose of setting the rent.

A review shall not be carried out more than once in any 12 month period., two years outside abRPZ.

Frequency of Rent Reviews

A review of the rent under the tenancy of a dwelling may not occur more frequently than once in each period of 24 months, nor in the period of 24 months beginning on the commencement of the tenancy. separate provisions apply in rent pressure zones. An annual capped increase may apply.

This applies notwithstanding any provision to the contrary in the lease or tenancy agreement concerned.

The frequency of rent reviews is 24 months instead of 12 months for the period until 1 January 2025. This does not apply where tenancy predated the 2016 legislation and is in a rent pressure zone.

Rent Review Procedure

A notice must be given prior to rent review which is to state the amount of the new rent and the date from which it takes effect. The notice must be in the prescribed form, signed by the landlord and be dated. It must be given 90 days in advance of when it is to take effect.

The notice shall state the amount of the new rent and the date from which it is to have effect, include a statement that a dispute in relation to the setting of a rent pursuant to a review of the rent under a tenancy may be referred to the Board. This must be done before the date stated in the notice as the date from which that rent is to have effect, or the expiry of 28 days from the receipt by the tenant of that notice, whichever is the later.

It is to include a statement that a dispute in relation to the setting of the rent must be referred to the Board before the date stated in the notice, the date on which the rent is to take effect or the expiry of 90 days from the receipt of the notice, whichever is later.

Statements with Review Notice

There must be a statement by the landlord, that in his opinion the new rent is not greater than the market rent, having regard to the other terms of the tenancy, letting values of comparable dwellings in a comparable area.

The notice must specify the amount of rent sought for a dwelling of similar size, type and character to the dwelling, the subject of the tenancy situated in a comparable area. The ‘ amount of rent sought ’ means the amount of rent specified for the letting of a dwelling in an advertisement the date of which falls within the period of 4 weeks immediately preceding the date on which the notice is served.

It shall also specify, the amount of rent sought for 3 dwellings of a similar size, type and character to the dwelling that is the subject of the tenancy, and situated in a comparable area to that in which the dwelling the subject of the tenancy concerned is situated.

It shall include where the dwelling is in a rent pressure zone state how the rent set under the tenancy was calculated having regard to rent cap provisions or if they do not apply, state why they do not apply. The notice shall be dated and shall be signed by the landlord or his or her authorised agent.

Notice of Change

Where, following a review of rent, there is a change in the amount of rent, the landlord shall notify the tenant of the amount of rent set following that review in accordance with the tenancy agreement or where there is no such provision in the tenancy agreement, as soon as practicable.