Replied to Ad on Daft and I am Shocked

minicin

Sorry if this is kind of bringing up old subjects such as the high rent prices in Dublin at the moment but just was so shocked when I came across this. Myself and 3 professional girls went to see a house in Harolds Cross just over 2 months ago. The rent for the house was €2200 a month for four bedrooms. In the end we found somewhere else and that was fine but it turns out we now have to move again. So was searching through daft in vain when I spotted a house in the same housing estate as the one in Harolds Cross we had viewed previously. However the rent was €2700 a month. I decided to reply to the ad anyway and ask if the rent was infact negotiable. I got a reply to say the rent was not negotiable and infact it would probably be increasing to €3000 euro a month.

My question is can a house actually have gone up in rental value by €800 in 2 months or would this purely be a landlord looking to rip people off or make more money? Also how are people actually affording this rent? I would be really interested to hear what people made of this!

Spud83

minicin wrote:

My question is can a house actually have gone up in rental value by €800 in 2 months or would this purely be a landlord looking to rip people off or make more money?

I don’t see how the landlord is ripping anyone off. They are providing a service at a price that they have declared up front. If you don’t like the price walk away. The landlord is fully entitled to get the maximum amount of rent possible for his accommodation. Would you do any different?

minicin

alanmurphy83 wrote:

I don’t see how the landlord is ripping anyone off. They are providing a service at a price that they have declared up front. If you don’t like the price walk away. The landlord is fully entitled to get the maximum amount of rent possible for his accommodation. Would you do any different?

I think if it was me I would be worried that eventually the tenants would not be able to keep up with the rent payments I suppose! Far enough if he can get people to pay that money, really my surprise was learning that the rent could have increased by €800 in only two months!

Kinetic^

Rent has certainly increased in the last few months. Has it increased that much? Doubtful tbh, he probably got an enormous amount of interest and that's why he put the rent up.

Spud83

minicin wrote:

I think if it was me I would be worried that eventually the tenants would not be able to keep up with the rent payments I suppose! Far enough if he can get people to pay that money, really my surprise was learning that the rent could have increased by €800 in only two months!

Its not really a rent increase though. The first house you viewed could have been under-valued, or the owners didn't know how much they could get. Even though its the same estate, its a different house with a different owner, you never know he could have bbeen getting more rent from the previous occupants

tHE vAGGABOND

Whats mad, is that its still to let after several months and the rent is going up and not down

If you have your place empty and you would like to fill it - but its not filling at its current price, does 2nd year BuisOrg tell you to reduce the price and not increase it

That said, I have noticed friends talking about good places being quite hard to find to rent, as they are going quickly. If he has had hundreds of folks like yourselves ringing him asking about it, maybe he is seeing how much he can milk it for..

chump

there is no doubt rents have increased sharply in the last year - of course you'll get the odds people telling you they haven't but if you're a regular (or semi-regular) observer of daft you will certainly have noted it. I'd say 15% at least in dublin city and surrounding areas.

the_syco

minicin wrote:

I think if it was me I would be worried that eventually the tenants would not be able to keep up with the rent payments I suppose! Far enough if he can get people to pay that money, really my surprise was learning that the rent could have increased by €800 in only two months!

If it were me doing the renting, I'd have noticed Joe Bloggs down the road getting €2000 for his place, so I'd rent my place out for €2700. Sure, if Joe Bloggs down the road had had his house vacent, I may rent it for the same, but when you know people will pay for it, why bother? Also, did the last place have 3 bathrooms? http://www.daft.ie/221112 (€2400) only has 1 bathroom, and is not far from the €2700 property.

bugler

The market will decide the rent. A landlord can ask whatever he wants for rent, getting tenants willing to pay it is another matter.

www.daft.ie/223884 - 4 Bed / 2 Bath - €2300 Harolds Cross

www.daft.ie/230060 - 4 Bed / 2 Bath - €2500 Clonskeagh

www.daft.ie/223352 - 4 Bed / 2 Bath - €2200 Rathgar

www.daft.ie/231416 - 4 Bed / 3 Bath - €2500 Kimmage

There were a few in Terenure for < 2400 also.

Even allowing for location the €3000 figure mooted is way off, and even the €2700 is too high.

Personally, there's no way I'd pay 650/700 quid rent to share with 3 other people.

Degsy

Probably some halfwit who bought a second house as an investment property and is now paying so much in interest that he has to jack the price up to absurd levels.Its the way the market has gone unfortunatly.

minicin

the_syco wrote:

If it were me doing the renting, I'd have noticed Joe Bloggs down the road getting €2000 for his place, so I'd rent my place out for €2700. Sure, if Joe Bloggs down the road had had his house vacent, I may rent it for the same, but when you know people will pay for it, why bother? Also, did the last place have 3 bathrooms? http://www.daft.ie/221112 (€2400) only has 1 bathroom, and is not far from the €2700 property.

Both the houses where 4 beds and 3 baths! They was no difference I could see between the two houses at all! I personally just think it is crazy money to spend nearly 700 euro a month on rent not even including bills!

Spud83

minicin wrote:

Both the houses where 4 beds and 3 baths! They was no difference I could see between the two houses at all! I personally just think it is crazy money to spend nearly 700 euro a month on rent not even including bills!

I dont think anyone is going to disagree with you that it is crazy money. However if the landlord can find people willing to pay it then why would he charge less.

Degsy

You should really look into buying in this case.I recommend DCC's shared ownership scheme..you only need 1300 euro in a deposit.

D'Peoples Voice

minicin wrote:

My question is can a house actually have gone up in rental value by €800 in 2 months or would this purely be a landlord looking to rip people off or make more money?

I'd double check the wording of the legislation surrounding the setting up of the Private Residential Tenancies Board. In my recollection, a landlord may only increase the rent once a year and that review must be consistent with increases in the general area.
see page 5 of 13 (Adobe page numbers)
http://www.prtb.ie/DownloadDocs/Residential%20Tenancies%20Act%202004%20-%20A%20Quick%20Guide.pdf
I thought landlords only tried this trick with students!

bugler

I'd be interested to hear if that applies to properties not currently occupied by tenants. I'd always thought the obligation to be at market rate was aimed at a situation whereby there were tenants in situ and the LL was raising the rent.

I mean, has anyone ever heard a LL being contacted before his property is rented and being told the rent being asked for is too high? Surely nothing can be done to prospective rent, only actual rent. I suppose you could take the place and then immediately ask for a review!

SimpleSam06

bugler wrote:

I mean, has anyone ever heard a LL being contacted before his property is rented and being told the rent being asked for is too high? Surely nothing can be done to prospective rent, only actual rent. I suppose you could take the place and then immediately ask for a review!

Absoloutely, I don't know anyone that doesn't do that. You can haggle about anything, and rent is no different. Hes trying to sell you something, you have the money. He might be willing to take a cut if you point out problems with the place, however dubious, or make out that you will be a steady long term tenant. People will give a lot for a steady income stream.

Put it another way, what he loses in the cut he'd have lost anyway advertising for more tenants several times, not to mention the stress and time lost of interviewing and showings.

minicin

SimpleSam06 wrote:

Absoloutely, I don't know anyone that doesn't do that. You can haggle about anything, and rent is no different. Hes trying to sell you something, you have the money. He might be willing to take a cut if you point out problems with the place, however dubious, or make out that you will be a steady long term tenant. People will give a lot for a steady income stream.

Put it another way, what he loses in the cut he'd have lost anyway advertising for more tenants several times, not to mention the stress and time lost of interviewing and showings.

I have tried with so many landlords to negotiate rent prices but people seem to be holding out for the full price! I suppose if they can get it well done I just think a line needs to be drawn somewhere!!

SimpleSam06

minicin wrote:

I have tried with so many landlords to negotiate rent prices but people seem to be holding out for the full price! I suppose if they can get it well done I just think a line needs to be drawn somewhere!!

Well they are coming at it from the perspective of being holders of a valuable commodity up for auction. You need to undermine that, tell them you've already viewed five places today, and there was a place in town with an extra en suite for the same price, sure couldn't you knock a bit off for that, and so on. I've gotten decent discounts many times - work on those negotiation tactics, because you bet your arse they're trying to skin as much money out of you as they can! Another example, if they aren't registered, you can shave off at least €300 from the annual price, since thats what its costing you in rent relief.

the_syco

D'Peoples Voice wrote:

I'd double check the wording of the legislation surrounding the setting up of the Private Residential Tenancies Board. In my recollection, a landlord may only increase the rent once a year and that review must be consistent with increases in the general area.

I didn't read the link, but I think what you're saying only applies if someone is living there.

stepbar

Degsy wrote:

Probably some halfwit who bought a second house as an investment property and is now paying so much in interest that he has to jack the price up to absurd levels.Its the way the market has gone unfortunatly.

and there's plenty of them out there..... 3k a month is crazy.

Kipperhell

Rents have been consistently going up for a few years. I got sick of people ringing up trying to fit more people into the house than it would take. I started offering the places at higher prices to get rid of them and people offered more to secure the place.
House prices are lower but rent is going up and it has nothing to do with investors getting out as rental yield goes up. I don't own the places by the way I take care of them for family.

antoinolachtnai

I have been out renting in the last month. A landlord can get pretty much any rent he/she wants, if prepared to rent to students.

It does distort everything. The thing about it though, is that the landlord very frequently ends up with a rental void as a result of renting to students. A rental void of one month plus the cost of turning over the property is probably about 8 or 9 percent.