Residential Tenancies Act 2004

Setting of rent above market rent prohibited.

19

19.—(1) In setting, at any particular time, the rent under the tenancy of a dwelling, an amount of rent shall not be provided for that is greater than the amount of the market rent for that tenancy at that time.

(2) The reference in this section to the setting of the rent under a tenancy is a reference to—

( a) the initial setting of the rent under the tenancy, and

( b) any subsequent setting of the rent under the tenancy by way of a review of that rent.

F33 [ (3) The setting of the rent under the tenancy of a dwelling that is carried out on or after the relevant date shall be subject to subsections (4) to (7) .

(4) Subject to subsection (5) , in setting, at any particular time, the rent under a tenancy of a dwelling in a rent pressure zone, an amount of rent shall not be provided for that is greater than the amount determined by the formula

R x (1 + 0.04 x t/m)

where

m is

( a ) 24, where section 24C(1)(a) applies, or

( b ) 12, in any other case,

R is the amount of rent last set under a tenancy for the dwelling,

t is the number of months between

( a ) (i) the date the current rent came into effect under a tenancy for the dwelling, or

(ii) where F34 [ subparagraph (i) ] does not apply but the dwelling was previously let, other than in circumstances to which subsection (5) applies, the date rent became payable under a tenancy for the dwelling as last so let,

and

( b ) the date the rent for the tenancy of the dwelling will come into effect after its determination under this subsection.

(5) Subsection (4) does not apply

F35 [ ( a ) to the rent first set under the tenancy of

(i) a dwelling

(I) in a protected structure or proposed protected structure within the meaning of the Planning and Development Act 2000 , or

(II) that is such a structure,

provided that no tenancy in respect of that dwelling subsisted during the period of one year immediately preceding the date on which the tenancy concerned commenced, or

(ii) any other dwelling, provided that no tenancy in respect of that dwelling subsisted during the period of 2 years immediately preceding the date on which the tenancy concerned commenced, ]

( b ) if, in the period since the rent was last set under a tenancy for the dwelling

(i) a substantial change in the nature of the accommodation provided under the tenancy occurs, and

(ii) the rent under the tenancy, were it to be set immediately after that change, would, by virtue of that change, be F34 [ greater than ] the market rent for the tenancy at the time the rent was last set under a tenancy for the dwelling.

F36 [ (5A) For the purposes of paragraph (b) of subsection (5) , a substantial change in the nature of the accommodation provided under the tenancy shall only have taken place where

( a ) the works carried out to the dwelling concerned

(i) consist of a permanent extension to the dwelling that increases the floor area (within the meaning of Article 6 of the Building Regulations 1997 ( S.I. No. 497 of 1997 )) of the dwelling by an amount equal to not less than 25 per cent of the floor area (within such meaning) of the dwelling as it stood immediately before the commencement of those works,

(ii) in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 ( S.I. No. 243 of 2012 ) apply, result in the BER (within the meaning of those Regulations) being improved by not less than 7 building energy ratings, or

(iii) result in any 3 or more of the following:

(I) the internal layout of the dwelling being permanently altered;

(II) the dwelling being adapted to provide for access and use by a person with a disability, within the meaning of the Disability Act 2005 ;

(III) a permanent increase in the number of rooms in the dwelling;

(IV) in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 ( S.I. No. 243 of 2012 ) apply and that has a BER of D1 or lower, the BER (within the meaning of those Regulations) being improved by not less than 3 building energy ratings; or

(V) in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 ( S.I. No. 243 of 2012 ) apply and that has a BER of C3 or higher, the BER (within the meaning of those Regulations) being improved by not less than 2 building energy ratings,

and

( b ) the works carried out under paragraph (a) do not solely consist of works carried out for the purposes of compliance with section 12(1)(b) . ]

F37 [ (5B) Where, in setting, at any particular time, the rent under the tenancy of a dwelling in a rent pressure zone, a landlord seeks to rely on subsection (5) , the landlord shall

( a ) serve a notice in the prescribed form together with all relevant supporting information on the Board setting out the reasons why, in the landlord s opinion, subsection (4) does not apply to the dwelling,

( b ) specify in the notice the rent set under the tenancy of the dwelling and the amount of rent last set under the tenancy of the dwelling, and

( c ) serve the notice and information under paragraphs (a) and (b) within 1 month from the setting of the rent under the tenancy of the dwelling. ]

F38 [ (6) Where

( a ) a notice under section 22(2) has been served on the tenant, or

( b ) the review of the rent concerned has commenced,

before the relevant date, or, if an order is made by the Minister under section 24A(5) in respect of an area where the dwelling concerned is situate, before the date of the coming into operation of the order, then subsections (3) and (4) shall not apply to the new rent, referred to in section 22(2) , stated in that notice in accordance with that section. ]

F39 [ (6A) A person who fails to comply with the requirements of subsection (4) shall be guilty of an offence. ]

F40 [ (6B) A person, who in purported compliance with subsection (5B) , furnishes information to the Board which is false or misleading in a material respect knowing it to be so false or misleading or being reckless as to whether it is so false or misleading shall be guilty of an offence.

(6C) A person who fails to comply with the requirements of subsection (5B) shall be guilty of an offence. ]

(7) In this section

relevant date means the date section 33 of the Planning and Development (Housing) and Residential Tenancies Act 2016 comes into operation;

rent pressure zone means an area

( a ) prescribed by the Minister by order under section 24A as a rent pressure zone under that section, or

( b ) in respect of an area to which section 24B relates, deemed to be so prescribed by the Minister under section 24A . ]

Annotations:

Amendments:

F33

Inserted (24.12.2016) by Planning and Development (Housing) and Residential Tenancies Act 2016 (17/2016), s. 34, commenced as per s. 1(3)(b).

F34

Substituted (4.06.2019) by Residential Tenancies (Amendment) Act 2019 (14/2019), s. 6(1)(a), (b), S.I. No. 236 of 2019.

F35

Substituted (15.07.2019) by Local Government Rates and other Matters Act 2019 (24/2019), s. 25(1)(b), S.I. No. 355 of 2019.

F36

Inserted (4.06.2019) by Residential Tenancies (Amendment) Act 2019 (14/2019), s. 6(1)(c), S.I. No. 236 of 2019, subject to transitional provision in subs. (2).

F37

Inserted (1.07.2019) by Residential Tenancies (Amendment) Act 2019 (14/2019), s. 6(c), S.I. No. 286 of 2019.

F38

Substituted (4.06.2019) by Residential Tenancies (Amendment) Act 2019 (14/2019), s. 6(1)(d), S.I. No. 236 of 2019.

F39

Inserted (4.06.2019) by Residential Tenancies (Amendment) Act 2019 (14/2019), s. 6(1)(e), S.I. No. 236 of 2019.

F40

Inserted (1.07.2019) by Residential Tenancies (Amendment) Act 2019 (14/2019), s. 6(1)(e), S.I. No. 286 of 2019.

Editorial Notes:

E13

Previous affecting provision: subs. (5)(a) substituted (4.06.2019) by Residential Tenancies (Amendment) Act 2019 (14/2019), s. 6(1)(b), S.I. No. 236 of 2019; substituted as per F-note above.