Rent increase 20%

Rosina1969

How have rents increased so much in charlesland in the last year? Landlord wants to increase rent by 20%...since increase last year of about 5%. I know it's because he thinks he can get that much on the open market but its just pure greed IMO. Definitely should be some kind of protection for tenants. This is our helmet and we are the mercy of the landlords al the time.

eleMental

not that i agree with such a % increase, i think you will find that the majority of houses in charlesland are paying mortgages significantly in excess of the amount of rent that was being charged in the last 3-5 years. i for one, could not pay my mortgage when i rented the house in 2008, never mind the going rates for rent in 2012/13. therefore the rationale is probably that the landlard has had to cover a significant balance to break even and meet repayments. now with the strengthening of the housing market, he/she may be in a situation whereby it is not costing them as much of their own money to meet repayments (that bear in mind have likely INCREASED since they bought the house).

like i said, im not condoning 2 increases concurrently, but thats probly the rationale.

Charlie-Bravo

I know you haven't mentioned what you're actually paying versus what size a unit you're renting but if the going rate is let's say €1200 a month and lyou're only paying say €1,000 a month, if I was the landlord I would certainly be looking to get that extra €200. As eleMental says, there's a lot of mortgagees where even as much as €1200 isn't enough to cover their mortgage and having to cover the shortfall. These are just sample figures.

OP, if you're already paying the market rate, and he wants more, well you know what you need to do - go elsewhere. It's frustrating but that's the market for you.

homerno

Rosina1969 wrote: »

How have rents increased so much in charlesland in the last year? Landlord wants to increase rent by 20%...since increase last year of about 5%. I know it's because he thinks he can get that much on the open market but its just pure greed IMO. Definitely should be some kind of protection for tenants. This is our helmet and we are the mercy of the landlords al the time.

was it pure greed when most tenants demanded rent reductions once and twice a year for several straight years ? or does it only work one way??

Rosina1969

I've been renting for over 20 y ears and never ever asked for a reduction in rent, or been offered one!!! More fool me. Funny that no tenants have responded. Only greedy landlords! If mortgages increased by 25% there would be a public outcry. Tenants have no protections. 2nd class citizens all the way. No one gives a ****.

eleMental

as i said, the landlords are (not necessarily) being greedy they are merely trying to make their mortgage repayments. a 2-bed house in charlesland was selling for €380k in the boom. last year the price was as low as €175k. now you're lucky to to get €260k. there are many many people (both landlords and people living in their own houses) struggling to pay mortgages. maybe your landlord bought the house for themselves with no intention of ever having to rent, but had to move home because they couldnt make the repayments?

as astrofluff said, rents for the last 3-5 years wouldnt come near paying a mortgage repayment, and whilst im sure there are many factors at play here, and my point is just one example, im just trying to provide some context as to WHY the price has gone up. yes, it could equally be greed and they are merely cashing in on the housing shortage / price increase, but im just saying to consider ALL the potential reasons.

i hope you manage to resolve - maybe it would be better to talk directly to your landlord to understand why this has happened.

Rosina1969

yes I understand very well about house prices going so high and negative equity etc. A reason why I wasnt able to buy a house in the first place. My point is that I am renting, this is my home, and if mortgage payments went up 25% in 2 years there would be public outcry. Tenants are unprotected. With all due respect, landlords unable to make mortgage repayments are not my priority. Having a home, a stable home without being terrified all the time of rent increases, or being put out, or any of the other things tenants put up with, is unfair IMO. Rented property needs a lot more regulation. In a lot of countries rents are protected against such large increases at the whim of the market or the landlord.

GarIT

Rosina1969 wrote: »

yes I understand very well about house prices going so high and negative equity etc. A reason why I wasnt able to buy a house in the first place. My point is that I am renting, this is my home, and if mortgage payments went up 25% in 2 years there would be public outcry. Tenants are unprotected. With all due respect, landlords unable to make mortgage repayments are not my priority. Having a home, a stable home without being terrified all the time of rent increases, or being put out, or any of the other things tenants put up with, is unfair IMO. Rented property needs a lot more regulation. In a lot of countries rents are protected against such large increases at the whim of the market or the landlord.

Rents and tenants are protected in Ireland much more than any other country so I don't know where you got that idea. You said no tenants have responded, how you know that? In Ireland rents can't be increased past the going rate in the area, that is more protection than anywhere in Europe. Renting isn't just about providing you with a house at a price you like. Renting for a landlord is business, when you let emotions get in the way of business you fail.

The free market can't handle more protection than tenants have rights now, if there was more protection we would be sent into a permanent eternal recession. Nobody with a grasp on economics could actually call for fixed rents.

What are you on about mortgages going up, a mortgage is borrowing money, renting is buying a service they can't be compared.

Rosina1969

you're actually mistaken GarIT. In a lot of countries rent increases have to be approved by the government. I just think price increase of 25% in 2 years is greed. IMO. Tenants are not protected in this country. They can be evicted at the whim of a landlord. There is no security of tenure or stabiity. Hence why most people try to buy a house, even if they cant really afford it. They do it for stability and security. Even if you are in mortgage arrears the numbers whose houses are ever repossessed are tiny.

GarIT

Rosina1969 wrote: »

you're actually mistaken GarIT. In a lot of countries rent increases have to be approved by the government. I just think price increase of 25% in 2 years is greed. IMO. Tenants are not protected in this country. They can be evicted at the whim of a landlord. There is no security of tenure or stabiity. Hence why most people try to buy a house, even if they cant really afford it. They do it for stability and security. Even if you are in mortgage arrears the numbers whose houses are ever repossessed are tiny.

Actually look into it, this isn't unreasonable at all. That's not more protection, it wouldn't stop your current increase and they also don't have caps you could be looking at a 40% increase in the current market if this was any other country. It's clearly not greed, it is the landlord being quite selfless and extremely generous if that is all its changed in the last few years. If a tenant doesn't choose to leave it takes over a year to evict them, that is protection. Tenants should be able to be removed much faster IMO. A landlord shouldn't be forced to rent to somebody if they don't want to.

Yeah the lack of repossessions in a sham but it's not related to renting.

homerno

Rosina1969 wrote: »

I've been renting for over 20 y ears and never ever asked for a reduction in rent, or been offered one!!! More fool me. Funny that no tenants have responded. Only greedy landlords! If mortgages increased by 25% there would be a public outcry. Tenants have no protections. 2nd class citizens all the way. No one gives a ****.

few year ago mortgages did rise by 25 percent and more and guess what no public outcry. tenants are far too well protected you need to read up on it a little ,

mrbrianj

Op, what's the current market rent for your type of home and what do you currently pay?

The likes of threshold and prtb will help, but I can't see you getting a new lease if you want to pay below the average rent in your area.

But check out the prtb, that's what they are there for.

Cerco

homerno wrote: »

few year ago mortgages did rise by 25 percent and more and guess what no public outcry. tenants are far too well protected you need to read up on it a little ,

When exactly did mortgages increase by 25%?

Charlie-Bravo

Maybe he meant variable interest rates?

Rosina1969

sorry but people who own their own homes are MUCH better protected than tenants. A landlord can say he needs the place for his/her own or a relative's use, and you can be put out in 28 days. People have funny ideas about tenants on here! My point is that even if you are in arrears in a mortgage, it's very unlikely you will have to move, whereas tenants are at the mercy of the landlord. and it's not as easy as "just moving". Moving costs money. At the end of the day that is your home, and I disagree that tenants are protected in Ireland.

Wicklow Will

Hi Rosina. I understand your frustration as I was renting for over ten years before me and my other half bought our own home. Home owning is a double edged sword. Once you own it, you're responsible for it. If a tap leaks, a pipe bursts, a gutter overflows a toilet backs up - it's up to you the home owner to fix it. If you're a tenant - you simply call the landlord! I take your point about the insecurity of "tenure" as a tenant - you can simply be given notice to quit at the landlords fancy and are liable to rent increases every 12 months. I was very lucky in that in over ten years I only had three different land lords all of whom, in fairness, were very decent. I have to come clean and say that, due to an inheritance I am now a landlord and see the other side of the coin. Inconsiderate, careless and fe@£less tenants who abuse the property and don't care about the neighbours. It certainly isn't always a picnic being a landlord. If you consider that a landlord (many of whom weren't as fortunate as me to inherit property have taken on massive mortgages and may still be in negative equity) have to meet the costs of 1) Mortgage repayments 2) Property tax 3) Public liability and buildings insurance 4) Standard repairs and renewals 5) Contingency fund in case of appliance failure, tenant default, tenant damage to property in excess of deposit value - it DOES happen! 6) General maintenance 7) Service call outs etc ... All of these have to be met before the landlord makes one cent of profit and let's face it that is why we do it - to make a profit. We are not a charity and we can only charge as much as the market can take. Rents are the same as any other product pricing - the market will dictate what can be charged. I think you'll see that when you stop to think about what a landlord is forced to provide for in setting rents, why they are the price they are ... and I know you'll say that you're a good tenant and I've no reason to argue that one with you, but in general a landlord has to be fair to him /herself and family in not underselling their product and they cannot, when you first move in, know what kind of tenant you will turn out to be. It is at the outset that the level of rent will be set and there will only be so much bargaining room from that price.

You don't say how much you are paying - if you did people would be better able to comment on whether or not the landlord is being fair, so perhaps, if you would like more empathic feed back, you should consider saying how much you are paying and then you'll be better placed to judge on peoples' responses whether or not the landlord is being unreasonable in his demand.

Best of luck!

ellejay

Personally, I don't think the op needs to post the amount of rent they are paying.
The fact that they have a 25% increase is a huge amount to expect a tenant to pay, and is extortion, in my opinion.

I'm definitely going against popular opinion here, but the landlords costs are irrelevant to a tenant. As are the tenants costs to a landlord.

Do you you honestly think a tenant can go to the landlord looking for a reduction and say that they've been put on a 3 day week, or the cost of commuting has increased or something else has happened that they need to pay less rent?

So to say the poor ole landlord has to foot the bill for
1) a mortgage on their own property,
2) property tax that they just pass on to the tenant,
3) insurance that the tenant has to get also,
4) standard repairs and renewals that most landlords don't carry out,
5) contingency fund in case of appliance failure could be avoided if they they didn't buy cheap junk that has to be replaced,
6)general maintenance that the tenant carries out also, because they live there and want their home to look nice,
7) Service call outs, that generally wouldn't be required if the property was up to spec in the first place.

just doesn't cut it with me.
In my experience bar one exception, landlords are money grabbing greedy individuals who just don't play fair.

So op, to answer your question, in my opinion, move and try to find a landlord that appreciates a good tenant.

antoniolgj

ellejay wrote: »

...but the landlords costs are irrelevant to a tenant. As are the tenants costs to a landlord.

Do you you honestly think a tenant can go to the landlord looking for a reduction and say that they've been put on a 3 day week, or the cost of commuting has increased or something else has happened that they need to pay less rent?

Good point there...

Rosina1969

thanks ellejay - someone finally "gets it" and expresses it well. Thats what I was trying to say when I was saying that this is my home we're talking about and all talk of landlords being in negative equity etc etc etc, is all very sad and all for them but at the end of the day when I moved in I expect the rent to rise every year, but by that much? Trouble is there is a great shortage of rental properties in the area which is forcing the rents up, and its a landlords market at the moment. I cant just up and move to a different area as some houseowners seem to think I can do, as there are things to consider like schools, and uprooting kids, etc etc etc.

2011

ellejay wrote: »

I'm definitely going against popular opinion here, but the landlords costs are irrelevant to a tenant. As are the tenants costs to a landlord.

For the business of renting all overheads have to be taken into account when setting a price on the rent. If the rent is set too high the tennant should move on and the landloard will be unable to rent. If the landloard can rent at the higher rate then the rent is not set too high (from the landloard's perspective).

The tenant's costs are relevant to the landloard if this means that the rent can not be paid.

mrbrianj

Rosina, I do have sympathy for you. I know how hard everybody works to make the houses we live in homes. Kids needs come first, with schools and friends etc.

It's the problem with both renting and buying; interest rate increase and rent increases. For years we had to listen to people telling us how smart they were to get on the property ladder, followed by years of smug singles telling us how smart they were not to buy ("in Canada/Germany/everywhere else they only rent!")
That's no help to people who what a family home.

Your rent should not increase by 25% over 2 years (the exception being if you were paying well below the market rate in the first place). All landlords will favour a stable tenant, who plans to stay put for a long time. No complaints and no unnecessary call out for simple things everybody should handle themselves. Basically no hassle-

Negotiate with the landlord for a more gentle increase in line with market rate, or to get there eventually. Let them know also what you offer as a tenant.

Good luck

m5ex9oqjawdg2i

homerno wrote: »

was it pure greed when most tenants demanded rent reductions once and twice a year for several straight years ? or does it only work one way??

Yea... most tenants :rolleyes:

homerno

Beau Zealous Lap wrote: »

Yea... most tenants :rolleyes:

exactly most, however i never called any of my tenants greedy for asking, i would have done the same thing myself.

Gordy6040

TBH, I think the general lack of sympathy isn't personal. Its just that not enough is know about what you are paying for what style unit. I don't think anyone would want to see a neighbor forced to move out of their home and have kids move schools.

It could well be greed from your landlord.
A lot of people aren't professional landlords though, they're folks that bought a property when they were single, got married and then ended up with 2 properties in the family, its either rent one or sell at a loss.
It could well be that the landlord is forced to up the cost of your rent or face repossession ... who knows??? It is possible that if they came off a fixed rate and onto a variable rate then their mortgage did go up over 25% over the last few years.

Anyway, best wishes and good look to you. I hope everything works out ok.