Are rents dropping in Dublin?

Dorakman

I’ve seen no official figures released yet, which obviously aren’t a priority at the moment. But having a quick look at rent.ie, it seems central locations are being rented at a cheaper rate than we’ve seen for the past couple of years.

Currently we’re due to resign a lease without a rent increase, however I’m wondering is it better to look for a new place at current rates?

Ap2020

There does appear to have been a drop, especially in the centre. From looking at the listings (and running reverse image searches) a lot of the new stock is AirBnBs that are now being put on the rental market. Sometimes these are clearly intending to go back to the short-term letting market but are nevertheless offering 3-9 month terms. I anticipate those letting these apartments might not be fully cognisant of the difficulties they are now going to face in taking them back into the short term market.

I'm seeing a similar pattern in some of the student heavy areas, such as Castletroy in Limerick. Landlords offering 6 month leases out to September at a knock down rate, looking to replace students who've gone home. There doesn't seem to be an appreciation that they are now in an RPZ and will be locked into those rates, and that it won't take a student to enforce that themselves, any busy body can refer breaches of the RPZ to the RTB who now have an independent enforcement capability.

Browney7

Dorakman wrote: »

I’ve seen no official figures released yet, which obviously aren’t a priority at the moment. But having a quick look at rent.ie, it seems central locations are being rented at a cheaper rate than we’ve seen for the past couple of years.

Currently we’re due to resign a lease without a rent increase, however I’m wondering is it better to look for a new place at current rates?

Just don't re-sign for a fixed period and you'll still maintain some flexibility to move to somewhere new or better or more suitable.

Assuming you are there more than 6 months you have Part IV rights anyway unless you fear the LL may want to sell the property or move back into it and you have a sweet rental rate.

johnnyskeleton

Hard to see how rents won't fall, with:

1) airbnbs coming back into the private rental market due to a fall in tourism;
2) dramatic job losses, particularly in the service industry;
3) people who retain their jobs, but experience pay cuts;
4) general economic uncertainty; and
5) new builds due to start coming onto the market in the next 18 months.

No one has a crystal ball so no one can say they definitely will rise or fall, nor by how much etc, but I think it's reasonable to believe that rents could drop by say 15-20% over the next year or two. Vague, I know, but it is what it is!

Claw Hammer

At a minimum, the American tourism market to Europe will be shot to bits for this year and next. America is going to have a worse virus problem than the Chinese and nobody will want them. Foreign students will be much less willing to travel to Ireland for the next academic year. Language students are also more likely to stay home and travel uncle it is very clear that the virus is not longer an issue. The result will be lower levels of employment in many sectors of the economy. It is quite likely that many large building projects will be put on hold or cancelled. Add to this the fact that the banks will be in an absolute pickle. "Criticised loans" will have risen sharply and the banks will be desperate to achieve stability on their balance sheets. With a backdrop of lower rents and negative equity the property market will be seriously challenged.

Ballso

Dorakman wrote: »

I’ve seen no official figures released yet, which obviously aren’t a priority at the moment. But having a quick look at rent.ie, it seems central locations are being rented at a cheaper rate than we’ve seen for the past couple of years.

Currently we’re due to resign a lease without a rent increase, however I’m wondering is it better to look for a new place at current rates?

I'd be extremely cautious when renting off the likes of someone who has previously had their property on airbnb but has suddenly put it back into the residential market. These are likely to be the absolute worst of the landlord sector. If you've a decent landlord now and the rent isn't outrageous I'd look at staying where you are rather than gamble on some airbnb gouger

garhjw

new colleague in work just moved over from Turkey. He had been in a hotel and was planning to stay there a few weeks while he looked for a place. His hotel closed so he had to move on an apartment. He looked at a few which were former Air BnBs..... 3 of them were oonly offering 3 month leases.

Dorakman

Ballso wrote: »

I'd be extremely cautious when renting off the likes of someone who has previously had their property on airbnb but has suddenly put it back into the residential market. These are likely to be the absolute worst of the landlord sector. If you've a decent landlord now and the rent isn't outrageous I'd look at staying where you are rather than gamble on some airbnb gouger

The rent is pushing 2000, so it’s not exactly reasonable.

Graham

You don't have to sign a new lease.

Continue on a part 4 tenancy.

Dorakman

Graham wrote: »

You don't have to sign a new lease.

Continue on a part 4 tenancy.

I’m not familiar with that, do both parties have to agree to it? Sorry, I really need an idiots guide to this.

Graham

No, if you are due to sign a new lease I assume you have already been a tenant long enough to acquire part 4 rights.

As such you now have all of the statutory protections afforded by a Part 4 tenancy

More info here: https://www.citizensinformation.ie/en/housing/renting_a_home/types_of_tenancy.html

Read the section titled "Claiming a Part 4 tenancy at the end of a fixed-term lease"

Dorakman

Graham wrote: »

No, if you are due to sign a new lease I assume you have already been a tenant long enough to acquire part 4 rights.

As such you now have all of the statutory protections afforded by a Part 4 tenancy

More info here: https://www.citizensinformation.ie/en/housing/renting_a_home/types_of_tenancy.html

Read the section titled "Claiming a Part 4 tenancy at the end of a fixed-term lease"

Cool, so essentially we can keep living here without signing a lease, as long as the landlord doesn’t terminate the tenancy with just cause?

I informed the agency that we wouldn’t be signing the lease, but said nothing about actually moving out.

Ballso

Dorakman wrote: »

Cool, so essentially we can keep living here without signing a lease, as long as the landlord doesn’t terminate the tenancy with just cause?

I informed the agency that we wouldn’t be signing the lease, but said nothing about actually moving out.

A fixed term lease offers the landlord fewer options to evict.

Claw Hammer

Dorakman wrote: »

Cool, so essentially we can keep living here without signing a lease, as long as the landlord doesn’t terminate the tenancy with just cause?

I informed the agency that we wouldn’t be signing the lease, but said nothing about actually moving out.

There are limited grounds for the landlord to terminate the tenancy once you have been there for more than six months and less than five years and six months. You may well be able to negotiate a much better deal by July of this year as the market adjusts to the new reality.

Graham

Ballso wrote: »

A fixed term lease offers the landlord fewer options to evict.

Most modern leases allow for a break clause for any of the reasons allowed under the legislation.

A lease is all but worthless to landlord or tenant.

Graham

Dorakman wrote: »

Cool, so essentially we can keep living here without signing a lease, as long as the landlord doesn’t terminate the tenancy with just cause?

I informed the agency that we wouldn’t be signing the lease, but said nothing about actually moving out.

Just make sure they know you're planning to stay on by claiming your Part 4 otherwise you could be found liable for advertising costs etc.

jimmyrustle

Amazing to hear Matt Cooper and Karl Deeter remark this evening that available places, and thus rates of rent, may be rising and falling respectably due to an exodus of suddenly unemployed foreign nationals.

A strange claim, seeing as for the past five years anyone who dared suggest that EU freedom of movement and the free for all for student visas might just be having a negative effect on the ability of the natives to find an affordable rental property was rejected as dillusional racism.

garhjw

jimmyrustle wrote: »

Amazing to hear Matt Cooper and Karl Deeter remark this evening that available prices, and thus rates of rent, may be rising and falling respectably due to an exodus of suddenly unemployed foreign nationals.

A strange claim, seeing as for the past five years anyone who dared suggest that EU freedom of movement and the free for all for student visas might just be having a negative effect on the ability of the natives to find an affordable rental property was rejected as dillusional racism.

Wil be interesting to see if there is much movement of people returning to their own countries if they are unemployed. This is a global event so job opportunities may be limited in their home country as well. How do social welfare payments in Ireland compare with other countries etc....