Rent Increase due to "Rent Certainty?" Proposals

I Am The Law

Well I got a notice today from my landlord of a 7.7% per month rent increase from the 1st January 2016.

Thank you Mr. Kelly and Mr. Noonan, you have given me certainty for 2016 but only certainty in who I won't be voting for.

I'd like to hear from anyone else over the next few days who will be hit with a rent increase because of a pure unashamed electioneering stunt from a government who have done nothing to provide affordable housing for its citizens after 5 years in office.

The boom bust cycle is alive and well.

Jaketherake

I Am The Law wrote: »

Well I got a notice today from my landlord of a 7.7% per month rent increase from the 1st January 2016.

Thank you Mr. Kelly and Mr. Noonan, you have given me certainty for 2016 but only certainty in who I won't be voting for.

I'd like to hear from anyone else over the next few days who will be hit with a rent increase because of a pure unashamed electioneering stunt from a government who have done nothing to provide affordable housing for its citizens after 5 years in office.

The boom bust cycle is alive and well.

I'll be issuing increase notices on Monday to market rate plus €50. Need to cover myself, because god knows what shambles will appear on Tuesday.

ted1

I'll be increasing the rent allowing as its fir two years it'll be more than I was expecting to raise it by.

As a side note, If they made evictions easier , rent would come down.

newacc2015

Honestly every landlord I know has been hiking rents due to fear of rent controls.TBH most have been taking the market rent and putting on a few more percentage. I know its illegal, but I dont think interfering in the private market for political gain is morally right either.

Kelly has now damaged business confidence for a lot of Landlords. Its like when Anglo failed, it took years for people to have confidence to put their money back into Irish banks. It will be interesting to see how the big fund react to controls on their Businesses

Jaketherake

newacc2015 wrote: »

Honestly every landlord I know has been hiking rents due to fear of rent controls.TBH most have been taking the market rent and putting on a few more percentage. I know its illegal, but I dont think interfering in the private market for political gain is morally right either.

Kelly has now damaged business confidence for a lot of Landlords. Its like when Anglo failed, it took years for people to have confidence to put their money back into Irish banks. It will be interesting to see how the big fund react to controls on their Businesses

Its not illegal. Thats how market rent value increases.
If you were never allowed to charge more than x, then how could market rate go up ever?

Its impossible to stick rent to a specific market rent. There are different qualities of accommodation right down to how nice or how bad your landlord is to deal with. So the PRTB wont be making any case stick with a landlord going over by €100. Once he gets a tenant then thats market rate. And then the next landlord will go over by another €100 and so on until the market wont bite anymore. Then you have your upper rate.

The best tenants could hope for before was that the landlord likes them and doesnt charge market rates, but Alan Kelly has made sure now that landlords have no choice but to charge as much as possible, even for a good tenant, because of the handcuffs on when they can alter the rent for their own property.

Thanks the government for taking about 60% of your rent for themselves too. Because thats the major cost to landlords.
The biggest winner out of this is the government coffers. 60% of all of these increases will be going to them. Massive increase in revenue for them.

Mrs OBumble

My LL contacted me about a fortnight ago, we agree on a 20% increase. Personally I think it's a little above market rent now for the size and quality of the place, but there are so few vacancies out there that I felt I had no choice but to agree.

I won't be voting for any party that supports rent control. And that's said as a tenant

baldbear

Mrs OBumble wrote: »

My LL contacted me about a fortnight ago, we agree on a 20% increase. Personally I think it's a little above market rent now for the size and quality of the place, but there are so few vacancies out there that I felt I had no choice but to agree.

I won't be voting for any party that supports rent control. And that's said as a tenant

If you feel the increase is unfair why not go to the prtb? If I get another rent rise that's what I will do & think all tenants should do this & not let landlords just pluck a figure out of the air.

handlemaster

Landlords will increase now to the max rent possible as others have said . If thé government actually made it possible to get rid of non paying tenants easier they wouldnt have had to do this two year rent fixing. It would take a certain risk out of renting out property

jimmycrackcorm

I Am The Law wrote:

Well I got a notice today from my landlord of a 7.7% per month rent increase from the 1st January 2016.

What makes you think you weren't going to get an increase in any case seeing as everyone else is?

I Am The Law wrote:

Thank you Mr. Kelly and Mr. Noonan, you have given me certainty for 2016 but only certainty in who I won't be voting for.

But you won't get another increase until 2018, you don't think that's a good idea given it'll take that period of time at least to bring up supply.

handlemaster

jimmycrackcorm wrote: »

What makes you think you weren't going to get an increase in any case seeing as everyone else is?



But you won't get another increase until 2018, you don't think that's a good idea given it'll take that period of time at least to bring up supply.

Supply ? They will still be scratching their heads as to what should be done.

grass_grower

handlemaster wrote: »

Landlords will increase now to the max rent possible as others have said . If thé government actually made it possible to get rid of non paying tenants easier they wouldnt have had to do this two year rent fixing. It would take a certain risk out of renting out property

the goverment feels presure from the left politically , a few years ago a wealthy pensioner couple from dalkey were holding out in one of their thirteen properties , a member of PBP joined a protest against their eviction , their are no votes to be had in changing things so delinquent tenants are made to face consequences , no country protects delinquent tenants more than this one

grass_grower

handlemaster wrote: »

Landlords will increase now to the max rent possible as others have said . If thé government actually made it possible to get rid of non paying tenants easier they wouldnt have had to do this two year rent fixing. It would take a certain risk out of renting out property

if a new landlord takes over a property , is the previous rent relevant in terms of how much they ( new landlord ) can increase the rent ?

assuming the tenant remains in situ

handlemaster

grass_grower wrote: »

if a new landlord takes over a property , is the previous rent relevant in terms of how much they ( new landlord ) can increase the rent ?

assuming the tenant remains in situ

The tenant will have the same rights as before I assume .

grass_grower

handlemaster wrote: »

The tenant will have the same rights as before I assume .

not what i asked

im saying if i bought an apartment two weeks ago which happened to have a tenant in place , assuming the lease expires in january , can i raise the rent as its my first time negotiating a lease with this tenant

ted1

grass_grower wrote: »

not what i asked

im saying if i bought an apartment two weeks ago which happened to have a tenant in place , assuming the lease expires in january , can i raise the rent as its my first time negotiating a lease with this tenant

No, when you take over a property the with a tenant in situ you effectively continue on where the previous ll left off

Mrs OBumble

baldbear wrote: »

If you feel the increase is unfair why not go to the prtb? If I get another rent rise that's what I will do & think all tenants should do this & not let landlords just pluck a figure out of the air.

I don't think it's unfair - just a little high given the size of the place and the limitations of one bedroom. But the location is still fantastic.

What's "fair" is very hard to tell when it would be so difficult to find somewhere else. I certainly won't be raising any disputes, or doing anything that would negatively impact on the relationship with my LL.

I Am The Law

jimmycrackcorm wrote: »

What makes you think you weren't going to get an increase in any case seeing as everyone else is?



But you won't get another increase until 2018, you don't think that's a good idea given it'll take that period of time at least to bring up supply.

Because inflation is at -0.29%

I just check my payslip and ....... no, nothing extra in there.

so I would much prefer to have my current rent price fixed as that would have been certainty.

murphaph

I Am The Law wrote: »

Because inflation is at -0.29%

I just check my payslip and ....... no, nothing extra in there.

so I would much prefer to have my current rent price fixed as that would have been certainty.

That's the general rate of inflation. Some things in the basket are increasing in price, some decreasing. Rents are increasing because there is constrained supply. Rents fell a few years ago due to an oversupply. This trend has been reversed as house building all but halted for far too long.

There are actually a few meaningful things that government could do to alleviate the problems on the supply side. The most obvious one is to allow developers in areas of high demand to build higher. Dublin at least, contrary to what DCC seems to think, does not have some iconic skyline worth protecting. A dedicated high rise quarter (or 2) at Docklands and Heuston gate would go a very long way to solving the problems we currently face. We're just talking average 30 storey structures here, that would barely be considered tall elsewhere. You can force family friendly apartments to be part of any application, though the minimum sizes of apartments should not be regulated-if people want very small 20m² studios, they should be able to find them.

The other, more costly option for government (though something that should happen nevertheless) is to actually construct the already planned improvements to rail infrastructure in and around the capital and indeed Cork.

over_leveraged

wondering what might happen in this scenario

say a tenant is in a twelve month lease which expires in early janaury of 2016 , say the land lord sells the property to another person , can the new owner of the property negotiate a higher rent under a new lease once the current lease expires in january or will the new owner have to leave the rent as it is for two years

Jaketherake

over_leveraged wrote: »

wondering what might happen in this scenario

say a tenant is in a twelve month lease which expires in early janaury of 2016 , say the land lord sells the property to another person , can the new owner of the property negotiate a higher rent under a new lease once the current lease expires in january or will the new owner have to leave the rent as it is for two years

I think its only rent increases or new tenancies in the future that are to be limited to 2 yearly increases.
If your rent due a rent review based on one year from the last one I think it will still go ahead even if its in June 2016 for example.
Basically people made plans based on 1 yearly reviews which they did even last week or month.
For that to be altered would be an even worse slap in the face.
eg what now if interest rates went up by 2% in the next year, and a landlord has based his rent on interest rates staying the same. He now has to wait 2 years to catch up. Yet the government still get their 60% im sure.

jetfiremuck

Kelly the clown has compounded the problem.... As in any new rent going forward is now the base rent after the spike.

godtabh

Regarding supply alot depends on LAs.

I do a lot of development planning. South Dublin County Council are an example of a practical council who go through the planning process with their and the developer interests equally considered. Al ot of engagement to ensure all issues are dealt with early. Assuming all the checks and balances check out you could be on site within a year. Houses built and occupied 2/3 months later.

Kildare County Council on the other hand take a different approach. Same developer. Same design team. Zero engagement from the council. Planning process likely to take 18-24 months at least. One development of about 100 houses I am working on has been asked to build a new interchange onto M4.

debabyjesus

I had a rent increase of 8% about 3 months ago, I reckon I'm still below market rate even with the increase. But now the LL can't increase for another year from the last increase so I guess I'm safe from any increases no matter what kelly dreams up.

mirrorwall14

godtabh wrote: »

Regarding supply alot depends on LAs.

I do a lot of development planning. South Dublin County Council are an example of a practical council who go through the planning process with their and the developer interests equally considered. Al ot of engagement to ensure all issues are dealt with early. Assuming all the checks and balances check out you could be on site within a year. Houses built and occupied 2/3 months later.

Kildare County Council on the other hand take a different approach. Same developer. Same design team. Zero engagement from the council. Planning process likely to take 18-24 months at least. One development of about 100 houses I am working on has been asked to build a new interchange onto M4.

If thats the development I'm thinking of the traffic is particularly brutal in the area in question. Not that I think building a new interchange should be a requirement but at least the council are paying attention

rossmores

Just looked on Daft at lettings for new tenants it bloody awful prices well up, they have to entice new entrants in the business quickly

I am reducing my supply i have a unit vacant from last month wont rent it out remove from PRTB and keep for family and friends when i met my accountant last month to file tax returns he mentioned many of his client base where landlords and where intending moving out of the business my guess they will move quicker

In two years will there be more accommodation? I am sorry for the way this business has been manipulated by our politicians no winners here i am afraid,

godtabh

mirrorwall14 wrote: »

If thats the development I'm thinking of the traffic is particularly brutal in the area in question. Not that I think building a new interchange should be a requirement but at least the council are paying attention

The development I am working on adds less than 1% to the existing network traffic.

Butters1979

I Am The Law wrote: »

Because inflation is at -0.29%

I just check my payslip and ....... no, nothing extra in there.

so I would much prefer to have my current rent price fixed as that would have been certainty.

Why do you feel you have the right to keep something that someone else is willing to pay more for? This isn't social housing, it's private sector renting.

My rent hasn't changed in the two years I've been in the house and the fact I'm renting a room in a houseshare rather the all the house coupled to the fact the LL its totally absentee (I have yet to meet him) makes me hope raising the rent wont even come on his radar.

That said I will be holding off contacting him about one or two things that need doing around the house to stay off his radar.

I Am The Law

Butters1979 wrote: »

Why do you feel you have the right to keep something that someone else is willing to pay more for? This isn't social housing, it's private sector renting.

Believe me I know exactly how little my “Rights” are in this regard. I have 2 choices, either pay far too much for rent or buy a house and pay far too much for it, just like the BTL investors in the boom who think they will get their money back now.
It’s the short sightedness of the “private sector renting” that’s hard to understand. There is nowhere for the tenant to “pass” on the charge to! Like I said I checked the pay slip and there’s nothing extra in it and very little prospect of it improving any time soon.

I Am The Law

I Am The Law wrote: »

Like I said I checked the pay slip and there’s nothing extra in it and very little prospect of it improving any time soon.

Well the higher rate of tax was reduced by 1% and the threashold for entering the higher bracket increased in the last budget and the USC rates have been changed in this budget (will take effect in Jan). So you should have something extra in your payslip since Jan compared to last year and will see a little more again next year.

Not saying its enough to make up the difference in rent increases but its not true to say net pay is increasing a bit too.

lima

Stay classy guys..

http://www.newstalk.com/My-heart-is-breaking--Dublin-mother-faces-55-rent-increase

Edit: links already provided above

_Kaiser_

Kyle Hundreds Addict wrote: »

Well the higher rate of tax was reduced by 1% and the threashold for entering the higher bracket increased in the last budget and the USC rates have been changed in this budget (will take effect in Jan). So you should have something extra in your payslip since Jan compared to last year and will see a little more again next year.

Not saying its enough to make up the difference in rent increases but its not true to say net pay is increasing a bit too.

Yep, FG's electioneering stunt (most benefiting those who are already on very good wages and thus statistically likely to have bought already) has already been cancelled out by those who will now face rent hikes as a result of this latest half-baked notion.

All they had to do is copy/paste what is best practise elsewhere, but as usual they couldn't even do that without screwing it up.

_Kaiser_

_Kaiser_ wrote: »

most benefiting those who are already on very good wages .

Yes benefiting the people who pay the most tax and subsidise those who pay little or no tax. People in the higher tax bracket need to have their tax reduced further to make things in anyway fair. I'm confident FG will continue to reduce the tax burden on people in the higher bracket as they have done so in the last two budgets.

lima

lima wrote: »

Stay classy guys..

http://www.newstalk.com/My-heart-is-breaking--Dublin-mother-faces-55-rent-increase

Edit: links already provided above

In short, a landlord receiving below market rate (and potentially happy to do so!) has been spooked enough by the proposals to increase their rental charge to come into line with market prices, leaving a woman in a situation where she cannot find similar accommodation.

A quick scan through Daft for properties in that area for rent at €900 showed up just one property - a studio apartment.

It would be remiss not to consider the timing of this movement, and the aforementioned 'Rent Certainties' / meddling / interference by the Govt.

Anyone and everyone who can sit and think for a moment could have come to the conclusion that the rumoured methods would lead to this exact situation happening.

http://www.stephenkinsella.net/2015/06/08/we-tried-rent-controls-before-and-they-didnt-work/

_Kaiser_

Kyle Hundreds Addict wrote: »

Yes benefiting the people who pay the most tax and subsidise those who pay little or no tax. People in the higher tax bracket need to have their tax reduced further to make things in anyway fair. I'm confident FG will continue to reduce the tax burden on people in the higher bracket as they have done so in the last two budgets.

That assumes FG will be re-elected and/or in a position to dictate policy after the GE.. both of which are far from certain.

The tax net needs to be broadened so that everyone pays something.. instead though they've removed still more people from the Income Tax/USC net and a "giveaway" reminiscent of their predecessors

If they are re-elected I won't be surprised to see a Spring Statement (after the 1916 silliness of course) that reverses most of these cuts, either directly or indirectly with other taxes like the proposed Broadcasting Tax (which hasn't gone away!)

Either way though, this latest intervention will only make the situation a lot harder for those already renting, or those struggling to find somewhere.

_Kaiser_

_Kaiser_ wrote: »

That assumes FG will be re-elected and/or in a position to dictate policy after the GE.. both of which are far from certain.

There is no doubt they will be re-elected, there are enough people in the country with enough cop on to understand how they have got the country back on track and are the party to take us forward.

Carlos Orange

So this is why my landlord is raising my rent by 20%.

Finally found a place I really want to move into. Got outbid and now my rent is jumping.

hanna200

boardies can you please advise me what is this all about?

am I allowed to review the rent in 2016 or should I do it now? how rarely or how often am I allowed to proceed with the rent review from 01.01.2016?

until when should I look into this scenario? I'm on tracker and I don't want to be in a situation that i won't be able to afford repayments / increase the rent

Lux23

Kyle Hundreds Addict wrote: »

There is no doubt they will be re-elected, there are enough people in the country with enough cop on to understand how they have got the country back on track and are the party to take us forward.

Well is that really true? Because technically they did exactly what FF were doing (and this was FF's plan not Fine Gaels). I don't see any great long term strategists in that party. It all seems to be short term solutions that just paper over the cracks.

Paulw

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