Rent increase megathread

Gentleman Off The Pitch

punisher5112 wrote: »

Nobody forced you to buy.
That's a terrible business plan.

You increase you get very little return anyway as the tax take is phenomenal.

Rents are outrageous and that's across the country.

We moved to a house 3.5 years ago and previous tenants were on rent allowance and rent was €550 the same house is now €1200 or more and increasing and this of course isn't in Dublin.

Heard them on news talking about last year being biggest increase and €200 on top of top scale at 2007 figures in Dublin but I had to laugh at their prices as they were saying family homes were rented for quite low. In all honesty figures they were telling couldn't be right as to get a 3 bed in south Dublin is 2.5 k and up.

Wonder are we in for another crash any time soon.

Nobody forced me to buy in the same way no one is forced to rent in areas of high rent

punisher5112

Gentleman Off The Pitch wrote: »

Nobody forced me to buy in the same way no one is forced to rent in areas of high rent

Its high rent everywhere unless you see different.

I'm forced to commute long distance to live in a dump at extortionate rates and yet if I didn't work I would probably be able to live right next to where I work.

Its impossible to save to get out of paying the crazy rents.

Gentleman Off The Pitch

punisher5112 wrote: »

Its high rent everywhere unless you see different.

I'm forced to commute long distance to live in a dump at extortionate rates and yet if I didn't work I would probably be able to live right next to where I work.

Its impossible to save to get out of paying the crazy rents.

Due to my own circumstances, I live in an area of reasonable rent and commute 700 miles a week to work, but it's irrelevant to the point I was making. Landlords who weren't ruthless, who put the value of good tenants before maximising rental income have been shafted. If a similar scenario arises in the future I won't make the same mistake again.

Giving discounts was never the way to run a rental business, some posters have been pointing that out long before the rental caps came in and many warned about the potential for caps. A rental house is a business and it should be run to maximise profit, now that's no longer possible for some people becuse of foolishly renting well below market rate.

The LL I feel sorry for are those who increased the rent less than two years ago who were tied into the market rates of about two years ago which were much lower and couldn't increase to market rate due to the two year rule and now becuse of the 4% cap.

punisher5112

Noelle Most Tang wrote: »

Giving discounts was never the way to run a rental business, some posters have been pointing that out long before the rental caps came in and many warned about the potential for caps. A rental house is a business and it should be run to maximise profit, now that's no longer possible for some people becuse of foolishly renting well below market rate.

The LL I feel sorry for are those who increased the rent less than two years ago who were tied into the market rates of about two years ago which were much lower and couldn't increase to market rate due to the two year rule and now becuse of the 4% cap.

Why would you feel sorry.
Mortgages have come down cost has only increased or higher tax if you will.

So many vulture funds and big companies buying up and renting out and due to our tax laws they are making a killing and rolling in it.

Its sad and worrying how bad its got.

I would love to be able to afford to save for a deposit but due to having no option but to rent I am snookered and get no assistance whatsoever including not any tax relief.

People need to wake up to the bigger picture.

Government and councils have done nothing and only made it worse and worse and what we have running things now have no back bone to actually make any change or impact to actually try and solve the crisis.

Its mad all the sob stories are those that don't work and never pay their way and the other group that want everything handed to them and get it and they are also untouchable so it seems.

There needs to be a proper housing plan and strategy put in place and the private rental end of it needs a complete overhaul.

Samuel T. Cogley

Lads, any chance of quitting with this discounts crap?

If it's not a way to run a business how do you account for:

-Sales
-Ryan Air
-Introductory Offers
-Alan Sugar

Of course a business is run to maximise profit - although not necessarily. It seems if you're a landlord looking to give your tenants a break you're a bigger fool than someone who makes them live in a crap hole. Plenty of businesses run to make a modest profit and exist for other reasons but let's ignore all that and focus on maximising profit.

Sometimes if you have a good tenant it's worth looking after them, as losing them and getting some asshat in that wrecks the place, by very definition reduces profit. Sometime you'll even offer a discount off the bat to get a particular tenant you think is going to be a good tenant.

I'm sorry if this comes off as a rant, I'm sorry if it sounds angry, but I'm angry at the Government interfering where it has absolutely no business, where it's failing in it's own duty to people. But I'm really angry when people suggest you're a fool for trying to do the right thing and being blocked by a poorly thought out, populist, crap piece of legislation.

punisher5112

Its an investment to a lot and in a lot of cases ones retirement fund let's say.

Isn't it wonderful you can let it out for whatever amount of years and have its mortgage paid.

I understand yes there are the ones in negative equity but either sell, keep renting or go bankrupt may be an option.

newacc2015

punisher5112 wrote: »

Nobody forced you to buy.
That's a terrible business plan.

You increase you get very little return anyway as the tax take is phenomenal.

If you worked in an industry with a shortage of jobs eg software engineering. The wages were rising rapidly, would be absolutely fine with Government capping your wages? Sure no one forced you to be an software engineer and at the end of the day the tax deduction is huge....

punisher5112 wrote: »

Rents are outrageous and that's across the country.

We moved to a house 3.5 years ago and previous tenants were on rent allowance and rent was €550 the same house is now €1200 or more and increasing and this of course isn't in Dublin.

Rent are not outrageous. They are reflecting demand. Like the way any other good increases in price when demand is high. If the price ie rent is too high. It will not let.

Did you ever do a back of the envelope calculations on that rent? Considering a landlord has maintenance, LPT, insurance etc. How could he make a profit on €550 per month? Or whether it was logical for a house that would probably cost €275k to build letting at €6,600 p.a.?

I can't understand how people think it was sustainable for properties to be let with yield of 2-2.5% on them.

punisher5112

I find that funny to be honest.

It is also brought up oh look how they rent in France Germany etc. Yes its great there because they get conditions and can't be turfed out and rents aren't extortionate.

Here its money money and oh let's get more money.

Where I'm from 3 beds are getting €2500 and more monthly income from rent and these places are in no way special or up to date or even worth anything near that.

4ensic15

punisher5112 wrote: »

I find that funny to be honest.

It is also brought up oh look how they rent in France Germany etc. Yes its great there because they get conditions and can't be turfed out and rents aren't extortionate.

Here its money money and oh let's get more money.

Where I'm from 3 beds are getting €2500 and more monthly income from rent and these places are in no way special or up to date or even worth anything near that.

If they weren't worth it, they wouldn't rent for that money.

punisher5112

4ensic15 wrote: »

If they weren't worth it, they wouldn't rent for that money.

How are they worth it its only location is why.

In a lot of cases house is say built around 60s and I've done work in some that have not seen an update since 70s or 80s and minimum insulation to none and just pure dives.

People are renting out sheds for huge money sure does that make them worth it also?

Its disgraceful what's going on.

4ensic15

punisher5112 wrote: »

How are they worth it its only location is why.

In a lot of cases house is say built around 60s and I've done work in some that have not seen an update since 70s or 80s and minimum insulation to none and just pure dives.

People are renting out sheds for huge money sure does that make them worth it also?

Its disgraceful what's going on.

They are worth what someone is prepared to pay. That is the market economy. You vehicle is worth what someone will pay for it, not what you would like it to be worth.

yosser hughes

Most people are completely ignoring how the market has been manipulated and skewed to increase property prices for the sake of healthier bank balance sheets. NAMA was established and subsequently withheld property for this very reason. The housing shortage did not happen by accident, it happened by design.
Landlords benefit from this and they also benefit from the fact that the state contributes hundreds of millions in rent supplement to private landlords per year.So spare me from whining landlords. If you can't make it work in a market that is rigged for YOU then you shouldn't be in it.
The ONLY people suffering here, are those who need to put a roof over their head and bother to get out of bed to go to work everyday.
It beggars belief that landlords have the brass neck to complain.
Property both for sale and for rent are completely overpriced in this country and the country will lose in the long run.
Landlordism sucks money out the real productive economy in to assets that create no employment
This bubble will burst again.

Arcade_Tryer

newacc2015 wrote: »

Rent are not outrageous. They are reflecting demand. Like the way any other good increases in price when demand is high. If the price ie rent is too high. It will not let.
.

Entirely disingenuous. There is a serious supply side issue in the rental market, which is subsequently causing the stratospheric level of demand.

4ensic15 wrote: »

If they weren't worth it, they wouldn't rent for that money.

Of course they would. See above. The Dublin rental market is dysfunctional due to the severe lack of supply, not simply because people have suddenly decided that a sh*tty single room in South Dublin is worth €600+ per week.

Arcade_Tryer

4ensic15 wrote: »

They are worth what someone is prepared to pay. That is the market economy. You vehicle is worth what someone will pay for it, not what you would like it to be worth.

Yes, but at least be honest and admit it is an entirely dysfunctional rental market in Dublin. If there was a sudden shortage of cars in the country, and people were willing to pay €20k for my 15 year old Toyota, it would also be the market economy in action. But there would also obviously be something majorly wrong with that market.

athtrasna

Mod note

Please remember that this thread is about rent increases not about investments or government policy. Thanks

4ensic15

Arcade_Tryer wrote: »

Yes, but at least be honest and admit it is an entirely dysfunctional rental market in Dublin. If there was a sudden shortage of cars in the country, and people were willing to pay €20k for my 15 year old Toyota, it would also be the market economy in action. But there would also obviously be something majorly wrong with that market.

Irrespective of what wrong or right with the market, the value is what someone is prepared to pay.

punisher5112

4ensic15 wrote: »

They are worth what someone is prepared to pay. That is the market economy. You vehicle is worth what someone will pay for it, not what you would like it to be worth.

Again rubbish.

They are going for more by far then when we were in the boom times. People earn less now and in a lot of cases work harder and longer hours.

Cars are different to houses and in no way can be used to compare unless you're talking about a Bentley.

I work pay my way and end up with nothing at end of the month and will have nothing after what essentially is a mortgage but can be turfed out and have no investment to lean back on.

punisher5112

4ensic15 wrote: »

Irrespective of what wrong or right with the market, the value is what someone is prepared to pay.

How someone is prepared to pay the rates the way they are is beyond me.

4ensic15

punisher5112 wrote: »

How someone is prepared to pay the rates the way they are is beyond me.

Value is objective. Just because you are not prepared to pay a particular price for something does not mean someone else is not. Just because you don't understand the market does not devalue the goods and services traded in it.

Robineen

Arcade_Tryer wrote: »

Entirely disingenuous. There is a serious supply side issue in the rental market, which is subsequently causing the stratospheric level of demand.

Of course they would. See above. The Dublin rental market is dysfunctional due to the severe lack of supply, not simply because people have suddenly decided that a sh*tty single room in South Dublin is worth €600+ per week.

Exactly. People are very reluctantly paying these prices because they have no choice. The lack of supply has pushed rents past people's comfort zones. They are prepared to pay it because there is no other choice but for many people it's a huge struggle. A few of my friends are finding it impossible to save right now because of their rents and they are in decently paying jobs. There's something very wrong with that. So I agree that saying that people are willing to pay the asked for amounts is disingenuous and very glib.

It's not perfect but I welcome the rent cap legislation. It should just be a short-term measure though. Supply needs to be increased. From a selfish point of view, I moved into my apartment in 2014 and have not had an increase in that time. I'm delighted that, using the formula, if I were to be handed down a rent increase this year, it won't be very much at all.

athtrasna

Mod notes are not decorations. A plethora of off topic posts have been deleted. Any further such posts will result in cards.

Darando

Questions
Been renting a place for over 7 years - luckily never had a rent increase - so place is probably 300/400€ below similar in the block. LL recently said he been looking to raise the rent - is it a max of 4%? (even though never had an increase/below market rate) - just want to check no loop hole on that!! so its a 90 days notice to raise rent?
What is the notice for leaving also after been here so long?
No PRTB reg either so I assume that's his issue and not mine?

Darando

Darando wrote: »

Questions
Been renting a place for over 7 years - luckily never had a rent increase - so place is probably 300/400€ below similar in the block. LL recently said he been looking to raise the rent - is it a max of 4%? (even though never had an increase/below market rate) - just want to check no loop hole on that!! so its a 90 days notice to raise rent?
What is the notice for leaving also after been here so long?
No PRTB reg either so I assume that's his issue and not mine?

According to the calculations provided earlier in the thread, they can increase it by the length in months since last review divided by 24 (2 years), multiplied by 4 (for 4% increase).

84/24 = 3.5 * 4 = 14% increase they could give you.

Blinked_Missed It

Sorry to bump but wondering can anyone answer my previous question. Now that I know my notice from the estate agent is invalid what next. Do I tell them to reissue at the 4% max or take it up with the RTB. Thanks.

Ms Doubtfire1

It really depends what you want. Both is right.depending on the relationship you have with the EA (if any) you can make a decision upon what feels better in this particular case...

Michael D Not Higgins

Blinked_Missed It wrote: »

Sorry to bump but wondering can anyone answer my previous question. Now that I know my notice from the estate agent is invalid what next. Do I tell them to reissue at the 4% max or take it up with the RTB. Thanks.

You don't want to get involved with the RTB, just tell them to re-issue a valid notice of increase. Don't give them any help with the percentage or contents, just say the notice is invalid and if they don't issue a valid notice you will have to dispute it with the RTB as a last resort.

Blinked_Missed It

Thanks guys. Does it matter that I've been here since 2010. Could they not just say at this stage we want you out and will not be renewing the lease. Its an estate agent acting on behalf of what I believe to be a vulture fund which bought out the vast majority of our apartment block.

Michael D Not Higgins

Blinked_Missed It wrote: »

Thanks guys. Does it matter that I've been here since 2010. Could they not just say at this stage we want you out and will not be renewing the lease. Its an estate agent acting on behalf of what I believe to be a vulture fund which bought out the vast majority of our apartment block.

Your Part 4 rights are still in effect and they cannot terminate the tenancy except under one of the allowable reasons within the law, for example, intention to sell, breach of obligations, etc. They may be able to terminate at the end of your second part 4 which will occur on the anniversary of the tenancy in 2018 but the method for this has been complicated by recent law changes.

kidfromkibbly

jack_pearse wrote: »

Hi, I am a landlord who has never increased rents for my tenants I have for 5 years. The rent is cheap but I am happy to leave it as they are good tenants.

My question is, the apartment is in a 'rent pressure zone'...if they leave and I get new tenants will I only be able to increase the rent by 4% for the new tenants? Or since they are new tenants will I be able to agree an entirely new rent for them?

We're lucky to have a landlord like yourself, and can't tell you how much it's appreciated in the current renting environment!