Notice of Exemption from Rent Increase Restrictions on Rent Review

Understanding the Notice of Exemption from Rent Increase Restrictions in Ireland

In Ireland, the Residential Tenancies Board (RTB) provides a specific form known as the Notice of Exemption from Rent Increase Restrictions on Rent Review. This official document is crucial for landlords and tenants to understand when a rent review results in a rent setting that is exempt from the general rent increase restrictions applicable under Irish tenancy law. This article explains the purpose of this form, when and how it should be used, and key points to consider for landlords and tenants alike.

Purpose and Scope of the Notice

The Notice of Exemption from Rent Increase Restrictions serves to officially inform tenants and the RTB that a new rent set during a rent review falls outside the scope of rent increase restrictions. These restrictions are generally designed to protect tenants from excessive rent hikes, but certain circumstances permit exemptions. The form is used by landlords to declare that the rent setting meets specific criteria that qualify it for exemption, such as substantial property improvements or changes in energy efficiency.

It is important to note that this notice is served under section 19(5B) of the Residential Tenancies Act 2004 (as amended). The form must be completed accurately and submitted within a specified timeframe to ensure legal compliance and transparency.

When and How to Use the Form

Timing of Submission

• The landlord must serve the notice on both the tenant and the RTB within one month from the date the rent is set following a rent review.
• This ensures that both parties are promptly informed of the exemption status and that the RTB has official documentation on file.

How to Complete the Form

The form is divided into several parts, which require detailed information:

1. Part A: Tenancy Details — includes tenancy type, property address, Eircode, RTN (tenancy registration number), and tenancy start date.
2. Part B: Details of New Rent — includes current rent amount, frequency, date of last rent review notice, new rent amount, new rent frequency, and the date the new rent takes effect.
3. Part C: Notice of Exemption — specifies the reason(s) for exemption, such as substantial changes to the property, energy efficiency improvements, or end of a tenancy cycle.

Reasons for Exemption and Supporting Evidence

The form provides several grounds upon which a rent review can be exempt from restrictions:

• Substantial Change: Permanent extensions that increase the floor area by at least 25%.
• Energy Efficiency Improvements: Works that reduce primary energy use by at least 150 kWh per square metre annually, as per BER certificates.
• Other Works: Changes such as internal layout modifications, adaptations for disability access, or an increase in the number of rooms.
• End of a 6-Year or 3-Year Cycle: When the tenancy has reached the end of its minimum duration or cycle, allowing for a rent increase beyond restrictions.

Landlords must provide supporting documentation to substantiate claims, including BER certificates, building completion certificates, or evidence of property modifications. Accurate and honest declarations are essential, as false or misleading information can lead to penalties.

Points of Attention for Landlords and Tenants

Landlords should carefully review the guidance available on the RTB website before completing the form. It is crucial to serve the notice within the one-month deadline and ensure all relevant supporting documents are included to avoid disputes or penalties.

Tenants, on the other hand, should be aware of their rights and the circumstances under which rent exemptions are claimed. If a landlord claims an exemption, tenants can verify the documentation and seek advice or dispute resolution through the RTB if necessary.

Conclusion

The Notice of Exemption from Rent Increase Restrictions is a vital administrative tool in Ireland’s rental market, ensuring transparency and compliance with legal standards. Proper use of this form helps maintain a fair balance between landlords' rights to set appropriate rent levels and tenants' protection from excessive increases. Both parties should familiarize themselves with the form’s requirements and serve it correctly to uphold their legal obligations and rights under Irish tenancy law.