Cuirfear aistriúchán ar fáil go luath

Ár leithscéal as an míchaoithiúlacht. Cuirfear aistriúchán Gaeilge ar an leathanach seo ar fáil go luath. Go raibh maith agat as do chuid foighneachta agus muid ag obair ar leagan uasdátaithe.

Setting and reviewing rent in a cost rental tenancy

Cost rental tenancies provide secure and affordable housing for moderate-income households.

They are aimed at people who do not qualify for social housing but who have difficulty affording private rents.

Unlike private tenancies, cost rentals are let at a rent that only covers the cost of providing, managing, and maintaining the property. The rent is not driven by market prices. Rents are linked to annual inflation, so any rent increases are in-line with inflation

Cost rental rents are regulated to ensure affordability. There are specific rules landlords must follow when setting and reviewing the rent.

Setting rent for a new tenancy

The rent setting process for cost rentals is different to private tenancies. The initial rent is set based on costs, not market prices.

The rent must:

Be calculated to be no more than the cost to provide, manage and maintain the property.
Not exceed the costs to the owner over the cost calculation period (a minimum of 40 years).

How rent is set

Rent for cost rental tenancies is calculated using a specific formula:

((A / B) – 1) × C

A is the Harmonised Index of Consumer Prices (HICP) at the end of the month before the rent is being set or reviewed

For new tenancies, this is the month before the rent is set.

For rent reviews, it’s the earlier of:

The date the rent review notice is signed, or
The date the new rent is to take effect.

B is the HICP at the end of the month before the last rent was set

This could be the original rent set when the property became cost rental, or the amount set during the last review.

C is the most recent rent amount in euros

This could be the original rent, or the rent from the last review.

Full details on how to apply this formula in different situations (initial rent setting, first review, later reviews), is in S.I. No. 756/2021 – Affordable Housing Act 2021 (Cost Rental Rent Setting) Regulations 2021. These regulations provide the specific values and guidance needed to ensure that rent is set legally and correctly.

Reviewing rent

Rent reviews can happen once a year. They cannot happen in the first 12 months of the tenancy.

Rent reviews use a formula linked to inflation. This is based on the Harmonised Index of Consumer Prices (HICP), published by the Central Statistics Office (CSO).

Rent review notice

Your landlord must give you a Notice of Rent Review notice in advance.

To start a rent review the landlord must:

Complete a rent review notice using this form template.
Specify the date from which the new rent takes effect.
Send it to the tenant(s) at the cost rental address by pre-paid registered post (within Republic of Ireland). Or by email if the tenant(s) have given permission.

A Notice of Rent Review must be given:

At least 2 weeks before or
Up to 4 weeks after the new rent amount takes effect.

If a tenancy agreement does not say how often rent reviews will happen, the new rent will take effect on the anniversary of when the tenancy began.

While the new rent may take effect from the date specified in the rent review notice, the new rent will not become payable until the next rent day (known as the gale day) that falls 28 days after receipt of the rent review notice.

Disputes about rent

If there is a dispute about setting the rent or rent increases, either the landlord or tenant can refer the matter to the RTB dispute resolution service.

If a dispute is referred to the RTB, the new rent only becomes payable on the next rent day that falls 28 days after the determination decision.

Any difference between the old and new rent between the time the new rent took effect and became payable, must be paid within 12 weeks from the date the new rent becomes payable.