What is Market Rent?
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Market rent is defined as a rent that a tenant, not already in occupation, would willingly give and a landlord would willingly take for the rented dwelling, having regard to other terms of the tenancy and the letting values of dwellings of a similar size, type and character to the rented dwelling and situated in a comparable area.
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The RTB also has a useful rent index that reflects the actual rents being paid, according to the RTB’s records, as distinct from the asking or advertised rent, which is the basis of other rent reports. These reports may be useful to compare the market rent ascertained or set for a dwelling and are available here on the RTB website.
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The rent index reports cannot, however, be used for evidence of the 3 advertised comparable dwellings that must be provided in a Notice of Rent Review. This is a specific requirement explained below.
Market Comparables for Rent Reviews
To review the rent of a tenancy, a valid Notice of Rent Review must be served. The Notice must:
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Be accompanied by a statement by the landlord that it is their opinion that the new rent is not greater than market rent having regard to the other terms of the tenancy and letting values of dwellings of a similar size, type and character and situated in a comparable area;
and
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State the rent amount for three comparable dwellings of a similar size, type and character and situated in a comparable area to establish market rent. It is important to note that a comparable area does not have to be in the same locality but can be in a different location e.g., a 3-bed property in one rural town could be compared with a 3-bed property in another rural town.
The three comparable dwellings used in the Notice of Rent Review must have been advertised in the last 4 weeks immediately preceding the date on which the Notice of Rent Review was served.
More information on how to validly conduct a rent review can be found here:
Approved Housing Bodies
The use of market rent and comparable dwellings in setting/reviewing the rent does not apply for Approved Housing Body tenancies. Click here for further information on the rules that apply for Approved Housing Bodies.