Rents - Q1 2017 Increases?

April 73

I'm interested in what people think will happen to rents going into 2017, as the first two year rental freeze period comes to comes to an end.

There must be plenty of landlords coming out of the first rental freeze period in the new year.

Are average rents going to spike upwards in the first three or four months of 2017? Has the two year rental freeze succeeded in its intentions or will the potential spike in 2017 wipe out the benefits to tenants who have been protected against increases since Jan 2015?

davo10

April 73 wrote: »

I'm interested in what people think will happen to rents going into 2017, as the first two year rental freeze period comes to comes to an end.

There must be plenty of landlords coming out of the first rental freeze period in the new year.

Are average rents going to spike upwards in the first three or four months of 2017? Has the two year rental freeze succeeded in its intentions or will the potential spike in 2017 wipe out the benefits to tenants who have been protected against increases since Jan 2015?

The benefit of securing the rate for a longer period has been wiped out by the rates going up as a result of that longer period. Advertised rental rates for new tenants have gone up greatly over the last two years and it will be these rates that LLs will use as the three examples necessary to increase rates for existing tenants. No new supply so rents can only increase.

Baby01032012

Dublins largest landlord a investment REIT with over 2700 properties said last month that 70% of these will see a rent review in q1 and the rest in q2. So I can see a large bump in q1 and q2.

I've a property on which I was caught out by the 2 year freeze as I had marginally increased rent in July 2015 so that will see an increase in July next.

Plus the uncertainty over covneys plans possibly to limit increases to inflation, a lot of landlords will be looking to lock in as high an increase as soon as possible before a possible law change.

GGTrek

Baby01032012 wrote: »

Dublins largest landlord a investment REIT with over 2700 properties said last month that 70% of these will see a rent review in q1 and the rest in q2. So I can see a large bump in q1 and q2.

I've a property on which I was caught out by the 2 year freeze as I had marginally increased rent in July 2015 so that will see an increase in July next.

Plus the uncertainty over covneys plans possibly to limit increases to inflation, a lot of landlords will be looking to lock in as high an increase as soon as possible before a possible law change.

Could not agree more, I used to keep rent for good tenants below market levels since the law before Dec2015 was quite flexible, now unless the tenant is really great (i.e. does all his small repairs, warns me quickly about big issues and fully respect the tenancy agreement especially with respect to not having long term guests) I fully update to market rent since the massive uncertainty caused by government meddling does not let me see what type of positive cash flow I will receive even short term, while the negative cash flows are certain (tax, expenses, repairs, ...).

I have also decided that any type of breach of the leases will not be forgiven anymore, so I have already kicked out a tenant this year and in the process of kicking out another two at the moment.

I have also decided that when the 4 years are up, no matter how good the tenant he gets a termination notice and he is out in 112 or 224 days, the more time the tenant stays the more difficult to deal with them and the more the law is stacked against the landlord.

The government thinks he is doing a favour to the tenants by giving them so many rights, but in reality all this hassle to the landlords means that I cannot give an inch anymore to any tenant and I have to make maximum use of the little property rights I am left with my properties, which is very detrimental to the tenants!

< mod snip> Covneys plans are probably uncostitutional and if he decides to go ahead, I shall contact IPOA and help them fund a legal challenge against them and I believe the big REITs will challenge them too.

I never got any thank from any tenant for keeping the rent below market, in reality it is the opposite, the tenants with the lowest rents and the longest tenancies feel the most entitled.

Browney7

No doubt the government have meddled in the private rental market but not all of it has been to the landlord's detriment. The explosion in the use of HAP has absolutely hammered the available supply driving up "market" rents benefiting landlords.

athtrasna

Mod note

GCTrek
Please use paragraphs, a block of text is very difficult to read, I have added them to your post.

Some of your political posting crossed the line beyond this forum, it has been snipped.

Michael D Not Higgins

The only way is up.

Baby01032012

Michael D Not Higgins wrote: »

The only way is up.

I presume you were articulating a solution of building higher density in the cities as opposed to the direction rents will go for the foreseeable

Michael D Not Higgins