One rental property landlords

Peterx

Following on from the what is a good tenant thread I was struck (again) by the situation in Ireland whereby completely non-professional* people find themselves essentially with an unwanted part-time job - being a landlord.

I am curious as to the percentage of landlords who are not really landlords - The cohort of people who have one apartment they have outgrown but cannot sell, who don't think of themselves as landlords but find themselves;

• providing housing accommodation to tenants
• registering with the PRTB
• paying tax on the income

- ie: being a landlord!

* not unprofessional, I mean they have a day job and look after the rental property in their spare time.

snubbleste

That is too specific. This report is full of golden nuggets though

Irish landlords are predominantly small-scale:
65% rent 1 property,
26% rent 2–3 properties.
Around 33% are believed to be ‘accidental landlords’, in that they are renting a property due to inheritance, or are unable (or unwilling) to sell it due to negative equity
Profile of Landlords - Irelands_Rental_Sector_Report

Peterx

Thanks for that report snubbleste.
I will be digesting more than a sandwich later

Approximately a third of all landlords accidental. I nearly find it harder to believe that the other half of the 1 rental property landlords are not accidental!

snubbleste

Peterx wrote: »

Thanks for that report snubbleste.
I will be digesting more than a sandwich later
Approximately a third of all landlords accidental. I nearly find it harder to believe that the other half of the 1 rental property landlords are not accidental!

If you find the actual source of that data, let me know.

Thargor

This board always makes it sound like way harder work being a landlord than it is though. Im sure in some places and with problem tenants its a nightmare but for a lot of others including 100% of the places Ive ever lived you could go a year or longer without having to speak to the tenants, hardly a part-time job on top of an existing job, more like an extra week or twos wages into your bank account every month for feck all extra work, I wouldn't turn it down anyway and Im giving it 6 more months before I buy to let myself, seems to be the only thing left with a chance of giving you a return on your savings.

Peterx

Thargor wrote: »

This board always makes it sound like way harder work being a landlord than it is though. Im sure in some places and with problem tenants its a nightmare but for a lot of others including 100% of the places Ive ever lived you could go a year or longer without having to speak to the tenants, hardly a part-time job on top of an existing job, more like an extra week or twos wages into your bank account every month for feck all extra work, I wouldn't turn it down anyway and Im giving it 6 more months before I buy to let myself, seems to be the only thing left with a chance of giving you a return on your savings.

65% of Irish Landlords are in full agreement with you.

However this report suggests your return will be in the form of the asset at the end of the mortgage, paying off the mortgage will require more than the rent earned (after taxes)

http://files.nesc.ie/nesc_reports/en/141_Irelands_Rental_Sector_Background.pdf mentions that one third of landlords own more than one proprty.

Peterx

snubbleste wrote: »

If you find the actual source of that data, let me know.

dkm.ie/uploads/.../20102014_Future_of_PRS_DKM_Final_Report.pdf

google - Future of the Private Rented Sector Final Report DKM -

MarkAnthony

Lots of people like tinkering with one sort of investment or another. Just look at Forex. Property is exactly the same.

Gumbo

I have my primary residence and one property as a rental.
I think I am a good landlord.

Thargor

Thargor wrote: »

This board always makes it sound like way harder work being a landlord than it is though..

Definitely agree with that. I'm in my current place nearly 2 years and have never even met my landlord. Have probably rang him 2 or 3 times in the 2 years for small things like getting a boiler service, fix a leak and all that involved was ringing his plumber etc who would ring me to arrange a time or leave out a key.

Previous house was the same, only difference was the LL was paid in cash so one of the housemates who worked near him would drop in the money, but he never came near the house and I probably met him twice in 4 years. Again any small problem he would just have the tradesman ring and we would organise the fix etc.

marathonic

The number of properties a landlord has doesn't necessarily reflect the level of professionalism with which he, or she, treats being a landlord.

There are plenty of landlords with 3+ properties that do not maintain their properties to the minimum standards required.

Also, a lot of the single property landlords got into the business because they were under the same false illusions that most tenants are, i.e. Rent - Mortgage Payment = Huge Profits.

Many landlords only decide to forget the idea of purchasing additional properties when their accountant comes back with their tax return at the end of the year.

snubbleste

Did you find any other stats OP on how many 'accidental' landlords there are?

snubbleste

According to the PRTB
700,000 people are renting aka 20% of households.

66% of all landlords own just one
84% own two or less properties
ergo 16% own three or more
"We believe as many as 36% (of landlords) hadn't intended to be landlords"
http://www.independent.ie/irish-news/the-rent-report/the-accidental-landlords-most-own-just-one-property-31304758.html

April 73

Peterx wrote: »

However this report suggests your return will be in the form of the asset at the end of the mortgage, paying off the mortgage will require more than the rent earned (after taxes)

100% agree with this. I just can't see how anyone with one property bought in the last 10-15 years with a mortgage, keeping the place in a decent condition & paying taxes can make a profit. It's a long term investment for most of the single property landlords hoping for a pension income. Most of the accidental landlord are hoping to get shot of it once they've climbed out of negativity equity.