Q I have been living in a rented property for the last 12 months. My landlord recently informed me that he is considering increasing the rent by €100. I believe that this level of an increase is excessive; however, my landlord seems to be willing to negotiate. Obviously I am anxious to keep the new rent as close as possible to the old rent. Is there any advice you can offer me in advance of these negotiations?
AMost of the rules defining rents and increases are set out in the Residential Tenancies Act 2004. S24 defines the market rent as “. . . the rent which a willing tenant not already in occupation would give and a willing landlord would take for the dwelling, in each case on the basis of vacant possession being given, and having regard to (a) the other terms of the tenancy, and (b) 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 . . .”
S20 dictates that a landlord cannot increase the rent on a premises more often than once in any 12-month period, and S19 states that the rent cannot be increased to more than the prevailing rents at that time. Certain exceptions apply if any works have been carried out to the premises within the 12-month period. You must be given 28 days’ notice in writing of the increase, so as I read your question, the landlord is following the correct procedure.
You should firstly consider the rent sections of Daft.ie and Myhome.ie to see what similar types of accommodation are renting for in your area. As rent levels can change quickly, you need to be sure you are capturing the latest information. A call to a local estate agent should also inform you of current rent levels, and if there are a number of other properties available to let which will give you other options if you are unable to agree. An increase of €100 per month in a 12-month period seems reasonable, and you should consider that he may not be seeking a full increase.
Most landlords want a good quality, long term tenant who will adhere to the terms of the lease. I don’t mean that a landlord should not adhere to his obligations under a lease, but only recently a landlord informed me that he had decided not to increase the rent as he was perfectly satisfied that the property was being well looked after, the rent was being paid promptly and he did not wish to upset the arrangement with the tenant. This is certainly an exception, but demonstrates clearly that where there is a good working relationship between a landlord and tenant, it is not always about the money. The Private Residential Tenancies Board (PRTB) produce useful guides for landlords & tenants, which you should be aware of. You should also establish if your landlord is willing to consider a longer-term lease; however, in periods of escalating rent levels, he may not be willing to do so.
My own approach would be to set out clearly that you are satisfied to remain on in the premises if you can agree the increase; that, presumably, you have a good working relationship and that the property is being well looked after; and that you are suggesting an increase of less than the proposed rent (if the €100 is to the full market rate). Your landlord will be aware that if you do vacate the property he will have the costs of re-letting the property, new PRTB charges, perhaps a void period in the rent whilst the new tenants are moving in and maybe some redecoration works, and on balance may well see the advantages of reaching an agreement with you.
If you are unable to reach agreement, either side can refer the dispute to the PRTB and you should contact them directly to ensure the correct procedures for dispute resolution are being followed.
Edward Carey is a residential surveyor and a member of the Society of Chartered Surveyors Ireland (SCSI) residential agency surveyors professional group
Increase in management fees
Q I recently acquired a mortgage and bought an apartment in Dublin. After buying this apartment I received an estimate letter from the management company which stated that from the end of February 2014 to December 2014 the approximate fee was €920. Recently I received another invoice from the management company which stated that the fee was now €1,300. What should I do?
A The Multi-Unit Developments Act 2011 Precedent Pre-Contract Enquiries replies Part C (2) and (8) (a) and (b) which was provided to your solicitor during the purchase process should be reviewed with your solicitor again. These sections identify, very clearly, the property agent, the service charges and budget for the members of the owners’ management company (OMC) that you are now a member of. I have checked the publicly accessible online register of the Property Services Regulatory Authority (PSRA) psra.ie and both the firm and the individual is not listed as a property service provider. The author clearly states in the demand letter that she is acting on behalf of the OMC and thus would require a category D licence to do so. The letter does not state that the OMC is in receivership. Traditionally the larger and internationally known professional services firms would have provided receivership services to banks; worryingly this appears to have evolved outside their remit.
The manner by which they requested service charges to be paid by you must also be changed so as to comply with the Multi-Unit Developments Act 2011 (MUD Act 2011). Any demand for money must be accompanied with a copy of the budget that was agreed at the general meeting by the OMC members in accordance with Section 18 of the MUD Act 2011.
I advise that you reply in writing requesting the following to be clarified: their PSRA licence number; a copy of the budget; a copy of the minutes of the general meeting at which the members accepted the budget. Lastly you might request the details as noted in Section 15 of their letter of engagement so that you may write a complaint for not receiving the information in the manner required as set out by the MUD Act 2011.
Should the author be unable to confirm their licence number I think it would be appropriate to raise the matter promptly with the PSRA who is tasked to regulate property service providers such as letting agents, sales agents and in this case property managers.
Paul Huberman is a chartered surveyor and a member of the Society of Chartered Surveyors Ireland’s (SCSI) Properties and Facilities Management Professional Group
Shared driveway
Q For a number of years we have lived beside a rented property. Normally we had no issues with the tenants who moved in and out; however, recently new tenants moved into the property who frequently block our access to a shared driveway. Out of frustration we recently had our land surveyed and we discovered we own 85 per cent of the driveway. Given this, what strategy should we adopt to ensure that they don't block us anymore?
A Shared driveway issues tend to become problematic if the parties concerned do not use them as intended. The usual arrangement is that the title to each property extends to the centre of the driveway. Each has a right of way over the part of the driveway on the adjoining property. All parts of the shared driveway and adjacent part of the public road, should be kept free of obstruction, including car parking, so that each party has vehicular access over the entire area which is subject to right of way.
Your situation is somewhat unusual as your title includes 85 per cent of the driveway. You should first check your deed map, if your surveyor has not already done so, to verify the precise position of the title boundary and the extent of each right of way over the respective property. Do not assume that the rights of way extend over the entire driveway as some driveways are subsequently widened. You should then approach your neighbours and explain the situation in a friendly and informal manner. Suggest that the driveway issue may not have been adequately clarified to them when they originally moved in and that you will also clarify matters with their landlord. Assure them that you will confirm the position by providing them with a copy of your deed map.
You should follow this action by providing the copy of the deed map attached to a dated note referring to the initial contact. You may find that by having explained the situation to them in a calm, reasonable and rational manner, followed by evidence of the map, your neighbours will take the matter more seriously.
You should avoid any action that would damage relationships and possibly lead you into litigation as this would be costly, drawn out, stressful and have an uncertain outcome. The course of action outlined is more likely to achieve the desired outcome, but in the event that it does not, and if you have no option but litigation, it will work in your favour as it would demonstrate to the court that you acted reasonably.
Patrick Shine is a Chartered Geomatics Surveyor, a Chartered Civil Engineer and a member of SCSI. scsi.ie
