2% max rental increase allowed inflation 7% plus

handlemaster

The lastest government max rental increase of 2% is not only unfair when landlords are facing increases accross the board but will only lead to rental property shortage and higher rents eventually. Its surely a populist peope pleasee but the long term effect will do nothing to supply new homes.

mikemac2

If the tenant is paying the rent and all gas, internet, electricity bills why does the landlord need an inflation matching rent? Everything is being covered as agreed at the start of tenancy.

Interest rate rise, sure the rent can be looked at but the tenant will never know that situation and many properties are long since paid off.

What changed for the landlord? If they are not paying utility bills and do little upkeep what changed suddenly to need a rent increase?

Gumbo

Realistically the only things going up for the LL is LL Insurance and costs if repairs.

handlemaster

https://www.boards.ie/discussion/comment/118867923#Comment_118867923

Cost of repairs , you got it in one. Costs increased dramatically. Shortly interest rates will rise and rent will remain stagnant. Again the country needs rental properties this only discourages further investment accross the country.

Varik

https://www.boards.ie/discussion/comment/118867893#Comment_118867893

What changed for the landlord? If they are not paying utility bills and do little upkeep what changed suddenly to need a rent increase?

The Value of the money is what's changing, it's worth less.

redlad12

https://www.boards.ie/discussion/2058239880/2-max-rental-increase-allowed-inflation-7-plus

The government care more about renters than landlords, which is more than fair. Good luck

Snugbugrug28

Why do landlords need to be mollycoddled to make their lives easier?

Yellow_Fern

https://www.boards.ie/discussion/comment/118867923#Comment_118867923

If you believe in this position, why not force a rent cut of 50%? Why not force a price cut of 50% on petrol? Or iphones? The reality is that it is an irrational idea and only tolerated because houses evoke emotional responses and it is electorally popular.

The 2% rent cap is bad, because it causes market distortion, hurting renters. The expected effects of rent controls, don't happen overnight, but what we see in the market now is consistent with those predictions.

Victor

https://www.boards.ie/discussion/2058239880/2-max-rental-increase-allowed-inflation-7-plus

Rent increases of 4% were allowed when inflation was near zero. Of course, if we allow higher rent increases, that then feeds into higher inflation elsewhere.

https://www.boards.ie/discussion/comment/118869473#Comment_118869473

This happens for both landlord and tenant - the tenant can't afford the rent increase when their income is fixed.

DFB-D

https://www.boards.ie/discussion/2058239880/2-max-rental-increase-allowed-inflation-7-plus

To be fair the value of our investments increased by more than 7% in the last year.

You can't have everything!

handlemaster

https://www.boards.ie/discussion/comment/118870373#Comment_118870373

Great if your selling . Selling price is a moment in time at is not guaranteed

handlemaster

https://www.boards.ie/discussion/comment/118869596#Comment_118869596

So its ok for the landlord to have higher costs and taxes

Victor

Other than bank interest, most residential costs are covered by the tenant.

Which taxes have increased?

Economics101

While the long-term effects of rent controls are largely perverse (as evidenced by the exodus of private landlords), a fixed 2% increase irrespective of overall inflation is just plain daft. Better to have a formula related to overall prices or earnings, if you have to have controls.

How many times has the 2% rule changed over the past decade? Shows that they just make daft things up.

handlemaster

https://www.boards.ie/discussion/comment/118869514#Comment_118869514

All short term election moves

Mrs OBumble

https://www.boards.ie/discussion/comment/118870503#Comment_118870503

Appliance replacement isn't covered by the tenant. Nor are repairs to plumbing or electrics or the billding (unless the tenant broke things). Or property tax. Or insurance. Of management company charges.

JimmyVik

https://www.boards.ie/discussion/comment/118869461#Comment_118869461

Further investment has been well and truly discouraged for a long time now. Hence the current rental crisis.

And its only getting worse. People wanting to make landlords lives harder is like tukeys voting for Christmas. And Christmas is coming. Its all fine when you are sitting in the house reaping the benefits of rent controls, but when you have to move ... well its Christmas time for the turkey then.

Thinkingaboutit

https://www.boards.ie/discussion/comment/118869461#Comment_118869461

Landlords will just leave if the government is determined to disadvantage them, and have been. It appears to me that the idea is to be replace Irish landlords with huge foreign trusts, the infamous vulture funds, who can have the means to spread their costs over a great many unit. However they have no interest whatsoever in anyone who cannot afford a premium rent unless someone (say the County Council) pays for it. It is now also nearly impossible to get a mortgage for a rental property and property costs cannot be written off in the same way as other businesses. The government, no government is going to rack up taxes to mass build council houses, at least not for Irish people (or so Roderic O'Gorman envisages), vulture funds have no interest in poorer tenants, and so private rental should fill the gap. It cannot because government seems content to squeeze them regardless of the social cost. The government is determined that a section of business owners cannot be allowed to cover their costs. Rent control just means no one will enter the market except large scale property speculators with replacement (appliances, furniture) and repairs becoming ever more difficult.

The Student

https://www.boards.ie/discussion/comment/118869497#Comment_118869497

They don't its a business like every other business. Is the price of other goods and services staying at the same price?

Snugbugrug28

https://www.boards.ie/discussion/comment/118877807#Comment_118877807

I don't really see it as a business. More like a speculative investment with some dividends thrown in.

magicbastarder

could we retitle the thread 'why can't we allow one of the main drivers of inflation to further inflate'?

Fattybojangles

https://www.boards.ie/discussion/comment/118870494#Comment_118870494

Yes you chose to become a landlord you are already making profit. If you don't like it sell up.

JimmyVik

https://www.boards.ie/discussion/comment/118878039#Comment_118878039

Most of them are doing just that. Clearly they dont like it :)

But they are not the one who will suffer at the end of the day when they do sell up.

Fattybojangles

https://www.boards.ie/discussion/comment/118878112#Comment_118878112

Indeed and it's their right to do so but I really hate this fake poor mouth that landlords put on it's sickening.

ELM327

Have to laugh at these threads. "LL being mollycoddled" .. in a world where it's the only commercial income being taxed at 52%, and the systems of enforcement are biased towards the tenant, how is that mollycoddled?

JimmyVik

https://www.boards.ie/discussion/comment/118878137#Comment_118878137

Do you know what it leads to after you run them all away?

Fattybojangles

https://www.boards.ie/discussion/comment/118878146#Comment_118878146

The sky will fall in?

Amadan Dubh

The 2% rent increase limit was a compromise from those calling for an out and out rent freeze, but if we keep seeing rents increasing on average, then a rent freeze will come, SF will ensure to that. That's how I see it, not that I in any way agree with it.

JimmyVik

https://www.boards.ie/discussion/comment/118878148#Comment_118878148

Clearly not a forward thinking person if you cant figure it out.

Fattybojangles

https://www.boards.ie/discussion/comment/118878156#Comment_118878156

You're going to tell me that there'll be no properties left to rent because the gubbermint are driving the poor selfless entrepreneur landlords out of business? Meanwhile in the real world Landlords are extorting outrageous profits out of desperate tenants.

JimmyVik

https://www.boards.ie/discussion/comment/118878176#Comment_118878176

Im trying to help you use your loaf. Thats all. Use it and draw you own conclusions.