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27 2004

Residential Tenancies Act 2004

PART 3

Rent and Rent Reviews

Setting of rent above market rent prohibited.

19. —(1) In setting, at any particular time, the rent under the tenancy of a dwelling, an amount of rent shall not be provided for that is greater than the amount of the market rent for that tenancy at that time.

(2) The reference in this section to the setting of the rent under a tenancy is a reference to—

(a) the initial setting of the rent under the tenancy, and

(b) any subsequent setting of the rent under the tenancy by way of a review of that rent.

Frequency with which rent reviews may occur.

20. —(1) Subject to subsection (3), a review of the rent under the tenancy of a dwelling may not occur—

(a) more frequently than once in each period of 12 months, nor

(b) in the period of 12 months beginning on the commencement of the tenancy.

(2) Subsection (1) has effect notwithstanding any provision to the contrary in the lease or tenancy agreement concerned.

(3) Subsection (1) does not apply despite the fact that a period of less than 12 months has elapsed from—

(a) the last review of the rent under the tenancy, or

(b) the commencement of the tenancy,

if, in that period—

(i) a substantial change in the nature of the accommodation provided under the tenancy occurs, and

(ii) the rent under the tenancy, were it to be set immediately after that change, would, by virtue of that change, be different to what was the market rent for the tenancy at the time of that last review or the commencement of the tenancy, as the case may be.

Right to review of rent where none provided.

21. —If the lease or tenancy agreement concerned does not provide for such a review or the tenancy concerned is an implied one, either party may, subject to section 20 , require a review of the rent under the tenancy to be carried out and a new rent, if appropriate, set on foot of that review.

Tenant to be notified of new rent.

22. —(1) The setting of a rent (the “new rent”) pursuant to a review of the rent under a tenancy of a dwelling and which is otherwise lawful under this Part shall not have effect unless and until the condition specified in subsection (2) is satisfied.

(2) That condition is that, at least 28 days before the date from which the new rent is to have effect, a notice in writing is served by the landlord on the tenant stating the amount of the new rent and the date from which it is to have effect.

(3) Where that condition is satisfied, a dispute in relation to a rent falling within subsection (1) must be referred to the Board under Part 6 before—

(a) the date stated in the notice under subsection (2) as the date from which that rent is to have effect, or

(b) the expiry of 28 days from the receipt by the tenant of that notice,

whichever is the later.

Proceedings for rent arrears.

23. —Every person entitled to any rent in arrears or to be paid other charges under a tenancy of a dwelling (whether in his or her own right or as personal representative of a deceased landlord) shall be entitled to recover, under Part 6, such arrears or charges from the person who occupied the dwelling as a tenant in the period in which the arrears accrued or the charges arose or, as may be appropriate, from the person's personal representative.

“Market rent”, references to rent reviews, etc.

24. —(1) In this Part “market rent”, in relation to the tenancy of a dwelling, means the rent which a willing tenant not already in occupation would give and a willing landlord would take for the dwelling, in each case on the basis of vacant possession being given, and having regard to—

(a) the other terms of the tenancy, and

(b) the letting values of dwellings of a similar size, type and character to the dwelling and situated in a comparable area to that in which it is situated.

(2) References in this Part to a review of a rent include references to—

(a) any procedure (however it is described) for determining whether, and to what extent, a reduction or increase in the amount of the rent for the time being payable under the tenancy concerned ought to have effect, and

(b) the effect of the operation of a provision of a lease or tenancy agreement providing that, by reference to any formula, happening of any event or other matter whatsoever (and whether any act, decision or exercise of discretion on the part of any person is involved or not), such a reduction or increase shall have effect,

and, in the case of a provision of the kind referred to in paragraph (b), any prohibition under this Part on a review of rent occurring is to be read as a prohibition on the provision operating to have the foregoing effect.

(3) References in this Part to the setting of a rent are references to the oral agreeing of the rent or to its being provided for in a lease or tenancy agreement or, in the context of a review of rent—

(a) the oral agreeing of the rent,

(b) the oral or written notification of the rent, or

(c) in the case of a provision of the kind referred to in subsection (2)(b), the rent being set by virtue of the operation of that provision.