How a landlord can increase your rent will depend on whether you are in a Rent Pressure Zone, RPZ, or not.
A RPZ is an area where rents cannot be increased by more than general inflation, as recorded by the Harmonised Index of the Consumer Price (HICP). You can check to see if you are in an RPZ here.
In RPZs, the rent can only be increased once every 12 months. This increase must be done in the form of a Rent Review giving tenants at least 90 days’ notice. A Rent Review must be served as a hard copy. The official Notice of Rent Review Form can be found here. This form must be followed closely as any deviation will lead a Rent Review to be invalid.
Outside of RPZs, landlords can only review the rent every 24 months. This must be done with the same form and the same 90-day notice period. However, outside RPZs, the calculation is based on current market rent as determined by three comparable properties provided as examples. The landlord must include the rent amount for three comparable dwellings of a similar size, type and character and situated in a comparable area to establish market rent.
How is the rent set in a new tenancy?
When a new tenancy begins in an RPZ, the landlord must set the rent in accordance with the Harmonised Index of the Consumer Price (HICP).
It is common for landlords and tenants to believe that when one tenancy ends, and another begins, they can set the new rent to market rent levels. This is not the case. The HICP calculator on the RTB website must still be used. A landlord is therefore required to provide the tenant, in writing, with the following information when the tenancy begins:
- The amount of rent that was last set, which is the rent amount the previous tenant was paying in the rental dwelling.
- The date the rent was last set, which is the date that the tenancy commenced or the date the landlord previously set and served the notice of rent review.
- A statement as to how the rent was set in the rental property having regard to the RTB Rent Pressure Zone calculator which reflects the latest HICP inflation. Landlords can use the print option from the calculator to present this information.
Outside the RPZ, market value must be used to set the rent.
If your landlord did not provide this information, please contact Threshold to discuss how to address the situation.
If a rent review is unaffordable you may be able to seek assistance. Find out more here.
Exemptions
There are exemptions to the usual RPZ rules. Details on these exemptions can be found here.