Rent increase of nearly 45%

Del007

I'm renting a 2 bed apartment in Cork and I just got notice that it is to go up by nearly 45%.

Is there a maximum percentage that they are allowed to increase it by?

Cheers

Youngblood.III

It can if it within the markets conditions...check daft.ie for similar properties in same area, you could have been paying well below in the last year or two.

Del007

I thought that the maximum they could increase it was 25%, I'm not sure where I got that figure from though.

There's not too many other apartment around my area so it's hard to get the market value.

On the PRTB website it gives you an estimate of how much you should be paying but it doesn't include information for 2015 so that's pretty much useless

Youngblood.III

Mine went up 40% this year.. but I haven't had an increase in 5 yrs before this

Stheno

Del007 wrote: »

I thought that the maximum they could increase it was 25%, I'm not sure where I got that figure from though.

There's not too many other apartment around my area so it's hard to get the market value.

On the PRTB website it gives you an estimate of how much you should be paying but it doesn't include information for 2015 so that's pretty much useless

There's no limit as long as it is aligned with market rates

Del007

according to daft.ie, in my area there's only 3 other apartments available. 2 of the apartments are from the same letting agency and are in the same complex as me, they are a similar price to the increase. The other apartment near me has an asking price of 200 less per month.

godtabh

Del007 wrote: »

according to daft.ie, in my area there's only 3 other apartments available. 2 of the apartments are from the same letting agency and are in the same complex as me, they are a similar price to the increase. The other apartment near me has an asking price of 200 less per month.

Thats your answer so. Offer 200 less and be prepared to leave.

murphaph

Forget about percentages-the law doesn't deal in them. What are you paying now? What Does the LL want from now on, how much are the exact prices of the other available units you've mentioned?

By the way, you can probably thank Alan Kelly for stirring the proverbial with his rent control soundings. LLs who have been giving tenants a break (as it appears your LL has if you are paying so significantly under market rates) will have to knock that on the head or be locked into these below market rates for years.

PolaroidPizza

until Irish property legislation is written by someone other than the banks, get used to these increases.

godtabh

PolaroidPizza wrote: »

until Irish property legislation is written by someone other than the banks, get used to these increases.

How are the banks causing this?

The cause is down to the government pandering to the electorate and where supply is low compared to demand. That is generating the high rents.

I've got good tenants in my apartment. They are paying about €250 below the market rent and haven't had a rent increase since they moved in. I am reluctant but will likely have to increase it. Thats 100% down to Kelly.

If he let me run it as a proper business I dont think I would need to raise it

newacc2015

PolaroidPizza wrote: »

until Irish property legislation is written by someone other than the banks, get used to these increases.

The banks are writing legislation? I think if they were they would repo all the houses with people who havent made a mortgage payment in years. But are protected by our ridiculous repo laws.

So you believe private landlords shouldnt be allowed to charge market rate? If there is annual limits to percentages they can increase to.Landlords will just every year max out possible rent increases. Alan Kelly thought Ireland was an outlier and that we could possibly be the first country in the world for rent controls to work in (Partially no economist believes they are beneficial in the long run). As a result landlords have been panicking and increasing rents just in case rent controls are introduced. If you want to blame someone. Blame an idiotic TD who basically thought something you learn in the utter most basic economics class wouldnt apply to learn

Tenants have pretty great protection for their tenancy here compared to partially no rights for landlords.

great_at_golf

i recently bought an apartment a few weeks ago and there are tenants in situ , the lease is up around a week ago , the couple ( with a kid ) are paying 150 euro less than the average in the area

il be increasing it from 650 per month to 800 ( which is a 23 % increase ) but i will offer them a two year lease

OP , id ask for a two year lease at a fixed price

Del007

I'm currently paying 800 and they want to increase it to 1150 which is a very significant amount. They have other apartments on daft, one for 1200 and the other for 1350 in the same complex.

newacc2015

great_at_golf wrote: »

even a tenant pays nothing and treats the property like crap , you are looking at several months to evict them , tenant rights are very strong in this country when it comes to turfing someone out for not paying etc , what we lack of a proper well laid out framework surrounding the whole area of renting

We need to abolish the PRTB. I would say reform it if it was worthful. But IMO there is no benefits to keeping it. There isnt anything to positive to say about it other than it protects problem tenants

We need a US style housing court. Where you can evict anti-social tenants almost immediately. More rapid evictions for non-payment for rent. But anything that passes more responsibitly onto the Government to provide more housing will never work

Del007

Del007 wrote: »

I'm currently paying 800 and they want to increase it to 1150 which is a very significant amount. They have other apartments on daft, one for 1200 and the other for 1350 in the same complex.

I keep a close eye on rental prices in cork and your increase looks fairly typical (maybe a little on the high side), now I'm comparing asking prices let's say a year ago to asking prices now as opposed to what people actually pay but I'd imagine most advertised prices are close to what they go for.

Some examples I have seen would be, last year a place advertised for 850 now in the same compelx a place for 1200 I know the complex the apartments are identical. Another place where I have friends paying 950 and now an identical apartment asking 1400 (incl parking so you could say 1300 without).

Biggest jump I've seen is in one of the luxury apartments a 2 bed which have been asking 1200 the last few years was advertised for 2000 :eek:! While they are lovely apartments I'd be surprised if they actually got that though as it was totally outlandish!

great_at_golf

great_at_golf wrote: »

looks like cork is around 50% more expensive than limerick for rent and 15% above galway

There would obviously be some variations in complex prices with some people not asking as much etc, for example the place looking for 1400 had a place in the same complex looking for 1150 at the same time.

I was picking out some of the more extreme examples of which unfortunately are not rare.

_Brian

While rental income is essentially treated as personal income for landlords there will be steady increases while the market can hold it.
LL can't be expected to loose or just break even on owning and renting property, it needs to become a profitable enterprise.
In the longer term if it were more profitable, more investors would come forward and more rental stock would be available, easing the tight supply seen presently this levelling the rent increases.

We had new tenants moving in recently and increased rent by 22%, it hadn't changed in 5 years and I expect to hold it for two years for the current tenants - presuming they work out.

murphaph

Del007 wrote: »

I'm currently paying 800 and they want to increase it to 1150 which is a very significant amount. They have other apartments on daft, one for 1200 and the other for 1350 in the same complex.

I'm afraid you're basically hosed. As I said, you can thank Kelly for your troubles.

athtrasna

murphaph wrote: »

I'm afraid you're basically hosed. As I said, you can thank Kelly for your troubles.

You've repeatedly blamed Alan Kelly. We get the message. Can we move on now please?

Dob74

godtabh wrote:

How are the banks causing this?

Holding on to vacant property and not selling or renting. Tallest building in the country is nearly completely idle. Live in a nice area of Cork there's a few empty housing estates. Sitting idle for years with most units finished. They are not being sold or rented. That's gonna push prices higher due to lack of supply.

Mrs OBumble

murphaph wrote: »

By the way, you can probably thank Alan Kelly for stirring the proverbial with his rent control soundings. LLs who have been giving tenants a break (as it appears your LL has if you are paying so significantly under market rates) will have to knock that on the head or be locked into these below market rates for years.

Indeed.

Mine called recently with news of a 20% increase. Can't say I blame him, given the circumstances and the prevailing market rates.

Michael D Not Higgins

Dob74 wrote: »

Holding on to vacant property and not selling or renting. Tallest building in the country is nearly completely idle. Live in a nice area of Cork there's a few empty housing estates. Sitting idle for years with most units finished. They are not being sold or rented. That's gonna push prices higher due to lack of supply.

Are they even for sale? I just looked to see how much the apartments are in the tower but I can't even find somewhere selling them. Sherry Fitz are listed as the residential agent on the Elysian's site but there's no information on their own site about anything for sale.

Michael D Not Higgins

Michael D Not Higgins wrote: »

Are they even for sale? I just looked to see how much the apartments are in the tower but I can't even find somewhere selling them. Sherry Fitz are listed as the residential agent on the Elysian's site but there's no information on their own site about anything for sale.

As far as I'm aware none were ever sold, not because no one would buy them but because the developer (or whoever) wanted to rent them only and never put them up for sale at all.

There are definitely some rented but not sure how many. There was one up recently actually (2 bed 1600pm incl parking), they are gone in a flash when they do come up (even a few years ago when it was a renters market there would be queues to view them). Absolutely stunning apartments.

Michael D Not Higgins

Yeah we need this tax on holding vacant property to stop this non-development and restriction of supply.

Michael D Not Higgins

Michael D Not Higgins wrote: »

Yeah we need this tax on holding vacant property to stop this non-development and restriction of supply.

It makes no sense to not be renting them out I really don't understand it.

I remember hearing at one stage that in the past there were not enough let out to make it worth while operating the building and that people were evicted and the building shut down (its possible this is just rumours though).

The fact some are rented now though it would make far more sense to rent every one of them from a building operation cost point of view.

pwurple

Hannah Clean Slot wrote: »

I remember hearing at one stage that in the past there were not enough let out to make it worth while operating the building and that people were evicted and the building shut down (its possible this is just rumours though).

Rumours alright I think. If this is the Elysian tower we are talking about, as far as I can see it's fully occupied. I drive past it a few times a week and see loads of people, families, furniture in the glass windows at the front.

I've parked in the carpark, used the aldi on the ground floor, it's a functional occupied building.

pwurple

pwurple wrote: »

Rumours alright I think. If this is the Elysian tower we are talking about, as far as I can see it's fully occupied. I drive past it a few times a week and see loads of people, families, furniture in the glass windows at the front.

I've parked in the carpark, used the aldi on the ground floor, it's a functional occupied building.

Its occupied but I don't know of its fully occupied by any means. A number of floor are dark any time I pass. Also I think the building beside it are the same complex very few of them look like they are lived in (nothing on the balconys, no lights etc).

The stuff about it being shut down due to not having enough apartments rented is supposed to have happened after it was first finished not that its happening now.

PolaroidPizza

newacc2015 wrote: »

Tenants have pretty great protection for their tenancy here compared to partially no rights for landlords.

increase the rent by 100% and see how much protection the tenant gets.

and don't be so naïve regarding just who is runs the property show in this country.
All property values, including rent are still ~50% what they used to be. For the banks, still with massive loans on their books, leaving properties idle and valued at 2007 prices is better than taking a 50% devaluation on the books by selling/letting at current values.
land zoned for construction is not getting freed up anytime soon because of the hit the banks will take....and theres not much the government can do about it....ffs the government own one of them and they cant even get them to lower the 'morally unjustified' mortgage rates.

and banks are opposed to any reform of the renting situation as the last thing they want steamrolling into town on the back of a stable rental market is pension fund investors from abroad investing in properties thereby relegating the irish bank customers to the sidelines.

the first step to reform is to admit to ourselves who is actually in charge...and its painful to hear it, but its not the politicians.

markc2951

Greed is what brought this country to its knees and it's happening again slowly but surely

PolaroidPizza

PolaroidPizza wrote: »

increase the rent by 100% and see how much protection the tenant gets.

and don't be so naïve regarding just who is runs the property show in this country.
All property values, including rent are still ~50% what they used to be. For the banks, still with massive loans on their books, leaving properties idle and valued at 2007 prices is better than taking a 50% devaluation on the books by selling/letting at current values. r.

This is simply not true, rents are as high now as ever, even higher in some cases.

There may be lots of houses still in neg equity but I doubt many are at 50% or even close to it and loads of houses are back worth what they were back a few years ago.