Are Landlords really getting these prices

tesslab

Hi am currently renting a 2 bed house in Dublin 12 for 825 pm. Lease is up in May and I won't be renewing it. House is next to a park and am having too many probs with parking and screaming drunk teenagers. :rolleyes:

Have started looking around the area for somewhere else and I cant get over the price difference. On average it's looking like 1100 pm +. Now the houses I'm looking at are in the same estate and are the same size but some are in a much worse condition than the one I'm in now.

Are landlords getting anywhere near these prices?
Our rent is paid on time every month. We have references from neighbours and landlords. Just getting worried seeing whats out there as there is no way I can stick another year here. Nor can I afford much more than what I'm paying now.

RedXIV

I'd say most are chancing their arms. Just find a places you like and offer reasonable rents for them. I'd be pretty sure landlords will consider decent offers

Penguino

Rented properties generally go for less than they are advertised for. Put in an offer and see how you get on

LeahK

In the same boat OP, have been looking for the last two months for an apartment near-ish the north city centre, 2 beds and modern enough. Think I can find any?:(

It seems to be impossible to get anything decent for under 1100! I really cannot believe the prices. I have asked a few landlords about their prices and none seem to want to budge more than 25-50 quid less than asking.

Either the market is still very expensive or they are all chancing their arms.
Maybe the lack of people buying has the rents going up?

Monty Burnz

Don't forget that rent allowance distorts the market by putting an artificially high floor on rents. Thus, any kind of kip of bedsit at all will cost 400 euros, whereas in (wealthy, non-IMF-run) Berlin, 400 will get you a nice 2 bed apartment.

The state pays for half of all rented accommodation in this country - if we saw the rent allowance slashed, then landlords could not rely on getting a bare minimum of 400 plus for any dump, and rents would fall for everyone (including those on rent allowance of course). We'd be saving the state a fortune and allowing private renters to rent at lower prices (giving them more spending money to pour back into the economy). The downside would be that struggling BTL owners might go bust - but I don't see why it's fair to distort the market and screw everyone else for the benefit of landlords.

3DataModem

Totally agree. We will never see properly priced apartments (eg 60-90k) until rent allowance is tackled.

So much crap rental property for 500-600 pm.

OMD

I know I will get the typical response for this but, rents in decent areas of Dublin are going to go up. People are not buying or selling so new entrants have to go somewhere. Emigration from Dublin will not decrease the demand enough. Landlords do not need to reduce prices and the next move is up.

Monty Burnz

OMD wrote: »

I know I will get the typical response for this but, rents in decent areas of Dublin are going to go up. People are not buying or selling so new entrants have to go somewhere. Emigration from Dublin will not decrease the demand enough. Landlords do not need to reduce prices and the next move is up.

Wait until tens of thousands of NAMA properties are released onto the market in some form. They can't just mothball these buildings - they will disintegrate in a decade if they are not maintained.

Falling demand (emigration)
Less money (tax rises, pay cuts, unemployment)
Increasing supply (NAMA, forced sales etc)

Yup, rents are only moving one way alright.

Dyr

i asked one landlord to drop a 100 euro off the advertised rent and they wouldnt entertain it. We'll see how long that place up on daft for, lot of unrealistic people out there :rolleyes:

jimmycrackcorm

Monty Burnz wrote: »

Wait until tens of thousands of NAMA properties are released onto the market in some form. They can't just mothball these buildings - they will disintegrate in a decade if they are not maintained.
.

Yes, but look where those properties are...

Monty Burnz

jimmycrackcorm wrote: »

Yes, but look where those properties are...

There are loads of them in Dublin. Have you been out to Sandyford recently? The place is crawling with empty apartments. I just saw this place recently... http://www.vantageapartments.ie/ ...near the Bewley's hotel in Leopardstown. Must be about 250 empty apartments there alone. I was there on a weekday evening in January - about 5% of the places had lights on.

MistyCheese

I viewed a studio apartment on Tuesday which was entered on Daft 6 weeks ago. The advertised price was €550 a month and I asked if the landlord would be willing to part with it for €500 a month. I was told that I wasn't the first to have asked and the landlord wasn't willing to take €500. So I asked if he'd go as far as €525 and the agent said he would ring to ask and get back to me. He called later that afternoon to say the landlord wouldn't budge from €550.

It's going to be empty for a while at that price I imagine. It was worth €500 a month but it wasn't really worth the €525, although I was willing to pay that. I wasn't going to pay any more though.

tesslab

Whats driving me crazy is that some of the properties I'm looking at now were advertised 3 months ago for about 900. Nothing has been done with them (i.e. new furniture or any kind of decorating) but yet the price has gone up by 200 +

panda100

Monty Burnz wrote: »

Don't forget that rent allowance distorts the market by putting an artificially high floor on rents. Thus, any kind of kip of bedsit at all will cost 400 euros, whereas in (wealthy, non-IMF-run) Berlin, 400 will get you a nice 2 bed apartment.

The state pays for half of all rented accommodation in this country - if we saw the rent allowance slashed, then landlords could not rely on getting a bare minimum of 400 plus for any dump, and rents would fall for everyone (including those on rent allowance of course). We'd be saving the state a fortune and allowing private renters to rent at lower prices (giving them more spending money to pour back into the economy). The downside would be that struggling BTL owners might go bust - but I don't see why it's fair to distort the market and screw everyone else for the benefit of landlords.

Hmm, Im not sure.If that is the case, why do so many landlords not want or allow rent allowance?

Monty Burnz

panda100 wrote: »

Hmm, Im not sure.If that is the case, why do so many landlords not want or allow rent allowance?

Because they don't want the hassle that some landlords associate with RA tenants. It doesn't matter that some people don't want RA tenants, the market price is set by the lowest price that a landlord will accept (which is the RA rate) and prices only range up from there.

Jesus Wept

MistyCheese wrote: »

I viewed a studio apartment on Tuesday which was entered on Daft 6 weeks ago. The advertised price was €550 a month and I asked if the landlord would be willing to part with it for €500 a month. I was told that I wasn't the first to have asked and the landlord wasn't willing to take €500. So I asked if he'd go as far as €525 and the agent said he would ring to ask and get back to me. He called later that afternoon to say the landlord wouldn't budge from €550.

It's going to be empty for a while at that price I imagine. It was worth €500 a month but it wasn't really worth the €525, although I was willing to pay that. I wasn't going to pay any more though.

Landlord will probably lose more money when waiting.
Have had some good and some awfully thick landlords
Estate agents, all terrible bar one and his boss is terrible so it's not easy anyway.

axer

I am renting my current apartment for €800/month. I have to move out and looked at other apartments in the same complex. Most of the exact same apartment was looking for €900/month. The best I could convince was €850. Some just point blankly refused to drop their price entirely. Its madness.

The sooner the bank start repossessing the sooner the property prices (and subsequently rent prices) will drop.

OMD

axer wrote: »

I am renting my current apartment for €800/month. I have to move out and looked at other apartments in the same complex. Most of the exact same apartment was looking for €900/month. The best I could convince was €850. Some just point blankly refused to drop their price entirely. Its madness.

The sooner the bank start repossessing the sooner the property prices (and subsequently rent prices) will drop.

This is the point I was making earlier. Supply of rental properties is not going up but demand is so prices will rise. 2 posters have now backed this up with personal experience. just for balance, since Christmas, how many people have had their rent reduced or have seen neighbouring properties drop their rents?

Monty Burnz

axer wrote: »

I am renting my current apartment for €800/month. I have to move out and looked at other apartments in the same complex. Most of the exact same apartment was looking for €900/month. The best I could convince was €850. Some just point blankly refused to drop their price entirely. Its madness.

The sooner the bank start repossessing the sooner the property prices (and subsequently rent prices) will drop.

I think a lot of landlords think they can refuse to accept less than they are paying in mortgages for the property. 6 months or a year of lost income will eventually convince them otherwise.

axer

Monty Burnz wrote: »

I think a lot of landlords think they can refuse to accept less than they are paying in mortgages for the property. 6 months or a year of lost income will eventually convince them otherwise.

Yes, I think it will take another 6-12 months before people realise that they will need to cover some of the mortgage themselves. Many are just chancing it for the time being.

OMD

Monty Burnz wrote: »

I think a lot of landlords think they can refuse to accept less than they are paying in mortgages for the property. 6 months or a year of lost income will eventually convince them otherwise.

I think you missed the fact that he paid the higher rent. The apartment isn't empty the poster rented it despite the fact that it was 6% higher than his similar apartment

Monty Burnz

OMD wrote: »

I think you missed the fact that he paid the higher rent. The apartment isn't empty the poster rented it despite the fact that it was 6% higher than his similar apartment

Yes, but for every guy who gets it, there are the other 3 guys who refused to accept less and still have empty apartments.

OMD

Monty Burnz wrote: »

Yes, but for every guy who gets it, there are the other 3 guys who refused to accept less and still have empty apartments.

What are you basing that on?

Monty Burnz

OMD wrote: »

What are you basing that on?

I'm basing it on the fact that the poster said that there were several other identical empty apartments in the development that s/he didn't rent.

Rents are only moving in one direction in the coming years, and it's not up.

axer

OMD wrote: »

I think you missed the fact that he paid the higher rent. The apartment isn't empty the poster rented it despite the fact that it was 6% higher than his similar apartment

I presume you are refering to me. I refused to rent at that price and ended up finding one elsewhere.

OMD

axer wrote: »

I presume you are refering to me. I refused to rent at that price and ended up finding one elsewhere.

Sorry, when you said you convinced them to accept €850, I presumed that you then rented it.

OMD

Monty Burnz wrote: »

I'm basing it on the fact that the poster said that there were several other identical empty apartments in the development that s/he didn't rent.

Rents are only moving in one direction in the coming years, and it's not up.

I am referring to Dublin city and the only way rents are going there is up. We will see in 3 months time but I would be amazed if rents in Dublin were lower in 3 months time. Indeed if they are I will never post on this forum again.

Monty Burnz

OMD wrote: »

I am referring to Dublin city and the only way rents are going there is up. We will see in 3 months time but I would be amazed if rents in Dublin were lower in 3 months time. Indeed if they are I will never post on this forum again.

Don't say things like that

Short-term movements are hard to predict, but there is no way that rents can move upwards in the medium or long term due to the reasons I outlined above. I don't know if there is any reliable source of information over that sort of period anyway - DAFT reports only cover asking rents, not rents paid.

Dyr

Bambi wrote: »

i asked one landlord to drop a 100 euro off the advertised rent and they wouldnt entertain it. We'll see how long that place up on daft for, lot of unrealistic people out there :rolleyes:

The next day it was being advertised for 50 yoyos less :pac:

OMD

Monty Burnz wrote: »

Don't say things like that

Short-term movements are hard to predict, but there is no way that rents can move upwards in the medium or long term due to the reasons I outlined above. I don't know if there is any reliable source of information over that sort of period anyway - DAFT reports only cover asking rents, not rents paid.

The daft report compares asking prices now with asking prices in previous times so is reasonably accurate.

I suppose the question I asked earlier still stands. In the last 3 months (not before that) how many on this site have had their rent reduced?

Monty Burnz

OMD wrote: »

The daft report compares asking prices now with asking prices in previous times so is reasonably accurate.

Yup, it's pretty accurate for what landlords want.

OMD wrote: »

I suppose the question I asked earlier still stands. In the last 3 months (not before that) how many on this site have had their rent reduced?

Perhaps you could put a poll in After Hours? Unscientific, but it might give you a vague idea at least.