Rent Reductions

Samuel T. Cogley

It looks as if rents are reducing. One issue with this is reducing the rent and getting stuck at that level due to RPZ legislation if this is over in the shorter term.

Do you think the RPZ legislation will be revoked / lapse, and if it is to lapse when does this happen currently?

If one has a tenant looking for a reduction and one is already well under 'market' rate do you think it might be worth leaving the place empty for a few months until it all blows over or do you think we're in for longer term reductions?

garhjw

I think it is too early to say. Rents will likely fall but we don’t know by how much. Either way, there is a shortage of accommodation in the country, especially cities and there will be for some time to come.... a lot depends on how long this situation takes to get back to some kind of normal...

Graham

Samuel T. Cogley wrote: »

If one has a tenant looking for a reduction and one is already well under 'market' rate do you think it might be worth leaving the place empty for a few months until it all blows over or do you think we're in for longer term reductions?

The other option is you don't agree to the rent reduction.

That doesn't mean you can't help a struggling tenant by deferring rent or doing whatever else might come out in any emergency legislation.

DubCount

Samuel T. Cogley wrote: »

It looks as if rents are reducing. ….
Do you think the RPZ legislation will be revoked / lapse, and if it is to lapse when does this happen currently?

If rents start to reduce, RPZs become irrelevant. When rents are falling, restricting rent increases makes no difference, except for properties well below market rate. I think RPZ's will continue for some time to avoid properties stuck well below market rate getting a sudden correction, but for most of the market, they wont make any difference.

I'm not sure its time to call an end to rent inflation yet. There are a number of ex-Airbnb properties hitting the market in the wake of this shock, and a number of immigrants leaving the market etc.. There was a large amount of undersupply before all this happened, and 6 months or 12 months from now the market, how much of a turn around will we see?

Irish_peppa

Im wondering, will a lot of people who were working who loose their jobs just stay for the benefits and HAP. It might make sense not to return home to a country that pays feck all social welfare and gives little to no HAP. Put it this way Ireland has one of the best social welfare systems in Europe, why would loads of people from eastern europe and asia return home to worse conditions.

handlemaster

Graham wrote: »

The other option is you don't agree to the rent reduction.

That doesn't mean you can't help a struggling tenant by deferring rent or doing whatever else might come out in any emergency legislation.

Depends on OP s own situation. Maybe the landlord hasn't got a money tree growing in his garden.

handlemaster

handlemaster wrote: »

Depends on OP s own situation. Maybe the landlord hasn't got a money tree growing in his garden.

They are cheap to buy, just ordered two myself.

https://touch.adverts.ie/plants-trees/young-money-tree-for-sale/1601419

user.name

I do think that rents will reduce but it will probably take another while to see an overall hit. I have been browsing through some of the rental groups on FB and the only places that seem immediately in low demand is the shared rooms with 4 beds or more in the room

hardybuck

Have had a tenant enquire if mortgage freezes mean that he needs to continue to pay his rent. One of four names on the lease.

Has mentioned that he's lost his job but got a fairly sketchy email low in detail.

If it's true that he's lost his job I think we'd be happy to be reasonable in the short term, but I'd also be interested to see how social welfare and rent supplement might come through for individuals who might be in this situation.

LuasSimon

user.name wrote: »

I do think that rents will reduce but it will probably take another while to see an overall hit. I have been browsing through some of the rental groups on FB and the only places that seem immediately in low demand is the shared rooms with 4 beds or more in the room

4 beds in one room FFS , its sad our country has landlords prepared to have 4 people sharing a room. Its a throwback to strumpet city times.
Some peoples greed is shameful

Allinall

LuasSimon wrote: »

4 beds in one room FFS , its sad our country has landlords prepared to have 4 people sharing a room. Its a throwback to strumpet city times.
Some peoples greed is shameful

So make two of them homeless, yeah?

LuasSimon

Allinall wrote: »

So make two of them homeless, yeah?

Maybe you'll put ten people in a room altogether, you'll have loads of money then

LuasSimon

LuasSimon wrote: »

Maybe you'll put ten people in a room altogether, you'll have loads of money then

I suspect the point being made, is that the people sharing those rooms may not be in a position to rent an apartment in which they have their own room, and by imposing a two person per room policy, two people might be homeless. I doubt anyone shares a room with 3 other people unless they have to.

Claw Hammer

What will happen is that many people who have been crammed into sharing arrangements will attempt to move into less crowded situations. Couples who have been renting an ensuite bedroom in a house may be able to acquire a one bed apartment at the same price, when rents fall. The biggest hit will be taken by the landlords who have been renting high-priced, crowded accommodation. The move of people from that accommodation will tend to put a floor under higher quality accommodation.

JamesMason

Claw Hammer wrote: »

What will happen is that many people who have been crammed into sharing arrangements will attempt to move into less crowded situations. Couples who have been renting an ensuite bedroom in a house may be able to acquire a one bed apartment at the same price, when rents fall. The biggest hit will be taken by the landlords who have been renting high-priced, crowded accommodation. The move of people from that accommodation will tend to put a floor under higher quality accommodation.

If someone, housesharing with 12 others in a 3bed semi, tests positive for CoVid19 the contact tracing should make the landlord very very nervous.

JamesMason

JamesMason wrote: »

If someone, housesharing with 12 others in a 3bed semi, tests positive for CoVid19 the contact tracing should make the landlord very very nervous.

Why?

TippCashel

Suggestions welcome:

3 bedroom house (3 tenants) paid in full from one account.

One tenant’s parents have lost their jobs (he is a student and we both work full-time) and he can’t pay rent now (will subsequently move out).

Rent due tomorrow. Worth at least explaining this to the landlord to get a reduction of his cut for a month? Nothing to lose in asking I suppose.

Do have someone to fill the room in the next month believe it or not so that might help us.

LuasSimon

TippCashel wrote: »

Suggestions welcome:

3 bedroom house (3 tenants) paid in full from one account.

One tenant’s parents have lost their jobs (he is a student and we both work full-time) and he can’t pay rent now (will subsequently move out).

Rent due tomorrow. Worth at least explaining this to the landlord to get a reduction of his cut for a month? Nothing to lose in asking I suppose.

Do have someone to fill the room in the next month believe it or not so that might help us.

Worth asking the Landlord, some are decent but more of them have money as their God and couldnt care about your circumstances or what becomes of you, best of luck with it

LuasSimon

LuasSimon wrote: »

Worth asking the Landlord, some are decent but more of them have money as their God and couldnt care about your circumstances or what becomes of you, best of luck with it

To be fair, the poster hasn’t said he/she and other tenant have lost their jobs, therefore if the lease is shared, this is just a case of being joint and severely liable for the rent until a new tenant moves in.

Tippcashel, if the rent is being paid from one account, were you subletting to student?

TippCashel

Thanks guys

Not subletting to the student. We are three names on the lease (friends) and we pay the rent from my account then if that makes sense.

runawaybishop

LuasSimon wrote: »

Worth asking the Landlord, some are decent but more of them have money as their God and couldnt care about your circumstances or what becomes of you, best of luck with it

Are you not wrecked carrying that chip around?

hardybuck

TippCashel wrote: »

Suggestions welcome:

3 bedroom house (3 tenants) paid in full from one account.

One tenant’s parents have lost their jobs (he is a student and we both work full-time) and he can’t pay rent now (will subsequently move out).

Rent due tomorrow. Worth at least explaining this to the landlord to get a reduction of his cut for a month? Nothing to lose in asking I suppose.

Do have someone to fill the room in the next month believe it or not so that might help us.

If a new tenant is signing up next month presumably the landlord will just hold onto his portion of the deposit to cover his loss?

handlemaster

JamesMason wrote: »

If someone, housesharing with 12 others in a 3bed semi, tests positive for CoVid19 the contact tracing should make the landlord very very nervous.

Landlords = mommy & daddy !!

Field east

LuasSimon wrote: »

4 beds in one room FFS , its sad our country has landlords prepared to have 4 people sharing a room. Its a throwback to strumpet city times.
Some peoples greed is shameful

Individual cases make bad law comes to mind. I assume you know the context re the 4 in a room, nationalities involved, what has made them do it , relationship between them, , etc, etc, etc ,etc, . Otherwise you are not in a position to to make such a statement.

Edgware

The atmosphere at the moment is all anti landlord and there willl be lots of cases of people not paying any rent knowing that there is nothing the landlord can do about it.

hardybuck

Edgware wrote: »

The atmosphere at the moment is all anti landlord and there willl be lots of cases of people not paying any rent knowing that there is nothing the landlord can do about it.

Absolutely.

There will be some people who rely on the property for their income and who will probably be ineligible for welfare.

Flexibility has to go both ways.

Mrs OBumble

OP are you and the other tenant still working?

If so, just pay the rent between you.

easymoneysnipe

Hi all,
I am a student working in Dublin from January-August as part of placement/co-op from college. I am living with 5 others who are doing the exact same, all college students, working for 8 months. We are all renting a house together in Dublin but have all since moved back to, and are working from, our family homes. I am wondering can anyone tell me if we are still obliged to pay rent for the next 5 months, despite the 3 month rent freeze announced last night (24/03/2020). We have all signed a lease until August but I highly doubt we will be moving back in. Any advice or help would be greatly appreciated.

Old diesel

Dav010 wrote: »

Why?

I presume that 12 names from SAME address might raise eyebrows with the contact tracing people.

Not sure what they'd actually do about it though.

But all 12 names will be on record somewhere so that carrys risk.

Clearly in an apartment complex you can have more then 12 but then you'd expect to see that in the addresses.

So Apt 1 B or Apartment 2 c.

If you need 46 Attracta Estate on 12 people's addresses then that's not 12 different Apartments in the one block.

shreko

easymoneysnipe wrote: »

Hi all,
I am a student working in Dublin from January-August as part of placement/co-op from college. I am living with 5 others who are doing the exact same, all college students, working for 8 months. We are all renting a house together in Dublin but have all since moved back to, and are working from, our family homes. I am wondering can anyone tell me if we are still obliged to pay rent for the next 5 months, despite the 3 month rent freeze announced last night (24/03/2020). We have all signed a lease until August but I highly doubt we will be moving back in. Any advice or help would be greatly appreciated.

Has all of your CO-op been cancelled ? Why cant you continue with the lease ? Even if you have been advised to work from home why couldnt you do it at the rental property? Seeing as you are still working and (and I would assume being paid) you don't fall into the category of people this emergency legislation is there to help.
If you just decide to move home off your own back you are breaking the lease and while I doubt a landlord would chase you for 5 months rent its highly unlikely you will get your deposit back.

Old diesel

Old diesel wrote: »

I presume that 12 names from SAME address might raise eyebrows with the contact tracing people.

Not sure what they'd actually do about it though.

But all 12 names will be on record somewhere so that carrys risk.

Clearly in an apartment complex you can have more then 12 but then you'd expect to see that in the addresses.

So Apt 1 B or Apartment 2 c.

If you need 46 Attracta Estate on 12 people's addresses then that's not 12 different Apartments in the one block.

You think the young people doing the calls from UCD are going to waste time doing that? They are phoning hundreds, maybe thousands about a potentially deadly infectious disease, they are not checking living arrangements. Honestly, some of the stuff on here is mind bending.

franglan

Question all related to signing a lease in the current environment. I'm moving into a new property end of April, lease has arrived. Is there a way of checking previous monthly rent paid by current tenant to ensure annual increase of 4% cap is being adhered to? Also if it has been a year since previous increase would landlord be breaking law to increase rent with measures announced on rent freeze by government in response to Cov-19?

Old diesel

Dav010 wrote: »

You think the young people doing the calls from UCD are going to waste time doing that? They are phoning hundreds, maybe thousands about a potentially deadly infectious disease, they are not checking living arrangements. Honestly, some of the stuff on here is mind bending.

Its an additional risk from a public health viewpoint.

I don't know what training they are getting but from a strictly public health viewpoint - it wouldnt surprise me if they were trained to flag up more then 5 at an address.

Old diesel

Old diesel wrote: »

Its an additional risk from a public health viewpoint.

I don't know what training they are getting but from a strictly public health viewpoint - it wouldnt surprise me if they were trained to flag up more then 5 at an address.

You are not being serious I hope. You think the Dept of Health trained these guys to check whether they are complying with RTB/LA residential letting requirements? All in 2 weeks.

Mrs OBumble

Dav010 wrote: »

You are not being serious I hope. You think the Dept of Health trained these guys to check whether they are complying with RTB/LA residential letting requirements? All in 2 weeks.

It's nothing do do with tenancy requirements.

It's everything do to with having limited living space and no ability to self-isolate if needed.

Plenty ofvfamilybhomescwould have similar issues.

Mrs OBumble

Mrs OBumble wrote: »

It's nothing do do with tenancy requirements.

It's everything do to with having limited living space and no ability to self-isolate if needed.

Plenty ofvfamilybhomescwould have similar issues.

If you go back a few posts you will see that this tangent of the thread started with a poster saying Landlords will be sweating this. I don’t see what impact this will have on the LL, I suspect many of these types of squat conditions arise without the LLs knowledge.