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New amendments to the legislation on Rent Increases and Notices of Termination effective from 4th December 2015

by PRTB | Dec 04, 2015

The new changes regarding rent certainty:

1. The duration between rent reviews has been extended from 12 months to 24 months. This measure will have effect for a period of 4 years from enactment of the relevant provisions, after which the duration between rent reviews will revert back to 12 months. This measure has been introduced upon commencement of the new legislation on the 4th December 2015.

Change: A Landlord (or Receiver) can only seek a review of the rent once in any 24 month period and cannot increase within 24 months of the commencement of the tenancy. For example, if a landlord issues a Notice of Rent Review on or after the 4 December 2015, a further Notice of Rent Review may not be served until 24 months have passed from the date of the prior rent review notice. The amendments also have a form of retrospective effect. Therefore, if a rent review occurred during 2015, the next review may not occur until 2017.

2. The period of notice of a new rent has been extended from 28 days to 90 days.

Change: If a landlord is seeking to review the rent, they must serve notice on the tenant, in writing, providing 90 days notice before the increase is due to take effect. The new period applies to any notice to increase rent served on or after the 4 December 2015. Any notice served prior to this date will be subject to the previous 28 day period.

Some examples:

1. A landlord reviews the rent of a dwelling on 1 January 2016 by serving a 90 day notice of rent review indicating that the change will take effect from the 1 April 2016. A subsequent Notice of Rent Review can not issue until 1 January 2018 and must also provide 90 days notice prior to the change taking effect.

2. A landlord has reviewed the rent of a dwelling on 3 December 2015 (prior to the commencement of the new legislative changes), and served a 28 day notice that the rent was to increase on 1 January 2016. The next rent review notice can not issue until 3 December 2017 and would additionally have to provide 90 days notice prior to the change taking effect, which would be 4 March 2018.

The new changes implemented regarding the extension of the period of notice of termination for Landlords and Tenants:

Duration of Tenancy

Landlord

Notice Period

Tenant

Notice Period

Less than 6 months

28 days

28 days

6 months or more, but less than 1 year

35 days

35 days

1 year or more but less than 2 years

42 days

42 days

2 years or more but less than 3 years

56 days

56 days

3 years or more but less than 4 years

84 days

84 days

4 years or more but less than 5 years

112 days

84 days

5 years or more but less than 6 years

140 days

84 days

6 years or more but less than 7 years

168 days

84 days

7 years or more but less than 8 years

196 days

84 days

8 or more years

224 days

112 days


The changes in respect of the notice period required to be given when terminating a tenancy came into operation on the 4th December 2015 and apply to all Notices of Termination served from this date.

If a Notice of Termination was served prior to the 4th December 2015 the previous notice periods apply even where the actual notice period itself has not expired.

For example, where a tenancy has been in existence for 5 years and a Notice of Termination is served on the 1st December 2015.  The correct period of notice required to be given in that example is 112 days (the maximum period required prior to the new amendments coming into force).

Where a tenancy has been in existence for 5 years and a Notice of Termination is served on or after the 4 December (after enactment of the new amendments), the correct period of notice required to be given is 140 days under the new rules.