Why do Landlords feel entitled to rent increases?

Why do shops increase prices' why do employees seek wage increases, why does the minimum wage increase each year? Landlords are renting out properties to make money, the same as any other business. Its all about supply and demand and at the minute there is a shortage of supply. Inflation is hitting everything at the minute

It's not because they have it tough it's because they know we are in the middle of a housing crisis so need to capitilise on it as much as they can before the next downturn/emigration crisis. Also cash reducing in value by 5%+

No different to the housing for purchase or second-hand car market, - they will set the price at whatever people are willing to pay

What we should be more angry about is that our salaries aren't increasing accordingly

Any LL in an RPZ now feels obliged to raise the rent any chance they get. The rules work against you if you do not increase the rent any chance you can. I not in an RPZ....yet. This is a worry as well if you are designated your rent is fixed for at least the next 6-10 years at what could be a low rate.

That nice LL you post about was probably caught on the wrong part of the cycle when RPZ's were introduced. Not only that if he want to sell his property in the next few years it could cost him 30-50k in the market value of the apartment. So not only is he losing 6-10k/ year in rental he get screwed over on the sale as well. Between lost rent and property value he cod be looking at 100k over 6 years.

Yeah I'd imagine supply/ choice goes up rent goes down ! If not you have choice to move ? Seems more interference in market by government worse things get for all ? Would not like to be a tenant or a LL these days.

It's an investment, everything else is going up in price which feeds in to their expenses so they need to raise the rent or fall behind.

Not entitled, but it may do.

Yes, very much so. We gave reductions in the recession and when tennants lost jobs etc.

Now, with the current rules we have to increase the rent each year or be left behind. Previously we would only have done so every few years, and at that never increased to the full current market rate. Before when a tennant left the cost of reletting (painting, carpets, furniture, labor etc) would be covered over time by the increase to the current market rate. That is no longer possible, the rent needs to increase each year to keep up.

When we had our last rental crisis, around 2010ish, the rents where collapsing and tenants where bragging about how they got hundreds of Euro off their rent. No one complained and there wasn't stupid legislation introduced which restricted the market. Now we have a bigger crisis and the government is doing everything possible to drive investors out of the rental market.

Shop around, its mostly the irish ones that are the most expensive.

Back in 2010 I remember talking a letting agent from €1500 to €1300 for a 3 bed apartment. Letting agent told me the landlord had been getting €1800 in 2007. These things can work both ways.

our approach to housing and accommodation is an absolute train wreck, this is now the case for most renters and an increasing number of landlords. we ve codded ourselves into thinking absolute nonsense ideas and ideologies such as supply and demand etc etc, is how the world works, including in relation to our property needs, and now these ideas and ideologies are starting to fail for nearly everyone.

landlords have been encouraged into the market, but due to these critical failures, their chosen profession is becoming more and more precarious, hence the exodus, renters are obvious on the sh1t end of stick also, theres not much none sh1tty ends in this game

funnily enough, globally, you ll actually find, the more state interaction a country has in its property markets, the more stable those markets are, Singapore etc, we ve allowed ourselves to fall foul to this free market nonsense, now everyone is getting screwed, so, go us!

He is on about the removal of bedsits in the early noughties. The rules changed you could not have a single room flat, cooking and bedrooms had to be separate.

In larger cities and towns there was a lot of larger town houses. LL let these as single rooms with a bed and a small kitchenette in them. A lot were let to order single people.

At the same time fire regulations changed which took out a lot of flats over commercial premises. These units went out if the market and were never replace. Any that did stay were converted to multi- occupancy units maybe on one floor and the rentals charged doubled per occupant.

We've never let "supply and demand" work. We've either provided unneeded tax breaks to encourage supply in the noughties boom or introduced rent controls in the last few years to drive down supply. Then we provide tax incentives for big "professional" landlords to come in , after we've driven out the amateur landlords, who are buying up supply and leaving units empty because of interference in the market by goverment.

You can't compare a democratic country with an tiny city state ruled by a single party. Look at the problems nearly every other functioning country is having with property and they are all the same.

we have to walk away from all of this textbook economic crap, fundamental beliefs of this thinking, such as supply and demand simply doesnt work in this case, its not how the real world works, what you have just described is exactly what occurs when you allow major sectors such as the fire sectors to control your economy, i.e. credit fueled booms, and credit fueled busts, which in turn causes highly reactive policies such as you described.

yes, we ve all followed each other down this fire sector cul de sac, we have to move back towards more state interactions with these critical sectors, and not allow them to dominate and dictate our economies, as we have now....

A rental property is worth between 15 and 20 years annual rent so if you don’t keep the rents high you are lowering the value of your property. Banks probably use closer to 10 years rent. 

My father had a house in flats, since he passed away I help my mother with it.  Dad had the rents low and it very foolish of us not keep rising them.

Once the government brought out Rent Pressure Zones we should have been rising the rents to the max every year. Because we didn’t we are now locked in to low rent. The only way to fix that is to kick out every body and do a major renovation so that we can rebase line the rents. Personally I think rents are about 30% or more too high but are all the other costs in Ireland.  

By getting rid of small timeland lords and bring in RITS we have made things worse. Yes there is stock of good apartment to rent but a lot of them are empty, from what I hear finding somewhere to live is very difficult. I work with a guy from India and he said that people were offering an extra 200 or 300 a month cash to get a place at viewings so he keep missing out. So we are back to a black market economy. Thankfully for him he’s bought a place here now.

The way I see renting form a private LL is meant to be a convenience while you are young and not a life time thing. Is you’re a student you rent a house with a gang keep the rent down. You’re a 20 something you rent a house or flat with few others and enjoy life then eventually settle down and buy a place of your own or with wife, husband…  You’re in need of social housing, short term rent allowance or HAP, log term you rent form the council at an affordable rent.  

This craic of using private land lords as social housing is driving up rent and costing the state much more for poorer quality housing or the wrong type. I know people are crying out for apartment but these new 10+ story apartment building are going to end with social problems and massive fire. We don’t deal with antisocial behaviour here and we don’t enforce building regs or have a fire service that can fight those types of fires.

The blaming all of this on LL’s and RITEs is the government's way of covering their tracks and avoiding blame. As a further LL I shouldn’t say this but if you want to change things don’t vote FF or FG next election vote Labour and SF or for Social/Left  parties. Whatever you do make sure to vote.  

Agree on that. Crazy people with all their spare cash since covid putting it into property. Artificially inflating everything. Its a lose lose situation

Why do some tenants feel entitled , to STOP paying their rent ??

possibly some psychological issues occurring, possible financial issues, the list is endless really, but its the fact, our property markets are falling most tenents and landlords now, most landlords probably need to continually increase rates, to decrease the risks involved

If you want LOWER RENTALS, you need more rental properties (and more evil landlords).

RPZ's only help sitting tenants. New tenants pay top dollar in return. RPZ's drive lower cost rentals out of the market. Any LL charging anything less than maximum rent is reducing their income for decades to come as well as the value of their investment - who is going to do that.

As for entitlement .... I expect if your employer offered you a pay increase, you'd happily take it, but should you be entitled to it? The cost of my electric bill for my home has increased, buy why should my utility company be entitled to charge more? Entitlement is a dangerous concept in a market where identical properties have different limits on how much they can be rented for. Who should get to set the entitlement for any given product or service?

Finally. If you want quality, having a market where the price you are charged cannot be increased because you are receiving a higher quality product/service, is only going to mean a race to the bottom in standards. Where is the incentive to repaint, replace the old carpet, and fix the drafty window when you can charge the same rent whether you do the work or not?

Your argument is based on one person you know and you assume to know the landlords tax situation.

Inflation

Its a business

Your free to purchase Our own place or move

Within the law

High cost /risk

All of the above and more is why landlords can increase rents.

No big conspiracy just market factors at play. Constant government interference is guaranteed to make it worse