Good times.

Property Clinic: How can I bring a low-rent property up to market rates? (Irish Times)

The Irish Times view on the housing crisis: how to fix a broken system (irish Times editorial)

Related: The Irish Times Property Porn Hub

19 thoughts on “Low Rent

  1. Qwerty123

    Problem is, current system penalizes landlords who don’t increase rent annually by the minimum allowed 4%. If you are a decent landlord and had somebody in your property for say 5 years ago and never increased your rent, you are well below market when they do leave.

    1. postmanpat

      In vhat vay does ze system penalise ze landlords who don’t gouge 4 percent year after year? The new tenants don’t have to know the rent the previous tenant was paying. And even if they did , the landlord was getting by on getting what he was getting so why the greed all of a sudden? Trying to keep up with all their landlord friends who are raking it in and buying mid-life crisis cars with all the disposable income they are stealing of tenants? Why would you want to be a scumbag like them?

      1. Qwerty123

        legally they cant increase it above 4% the previous rent, just so you know I aint a landlord myself, did work with one before and he was a decent enough fella that was renting an apartment approx 800 per month below market to good tenants and everyone was happy. They left as they brought their own gaff and he took option 3 of cians options below and during that he took option 2 and sold it.
        To another landlord that had the rent above 1000 that he was charging a year previously.
        Anecdotal but interesting.

        Everyone giving out here, if the shoe was on the other foot, you would want something approaching market rent on your investment.

        1. postmanpat

          Except its usually not an investment but rather an inherited family home divvied up between a few mid fifty year olds kids who are living in paid off or close to paid off homes of their own. So the rent made by the property while the new owners wait for the right time to sell is all gravy. The decent thing to do is offer a tenant decent rent and not rip them off just because Media like IT , Newstalk Radio, RTE and all the lousy boomers and financial planners are advising them to do.

          1. Rob_G

            What’s your point? The policy either encourages more landlords into the market, and eases the rental crisis, or discourages landlords from renting out properties, and makes the crisis worse.

            I suspect that the RPZ has the effect of the latter.

          2. postmanpat

            My point is the miserable meanness of people. Before the 2008 financial crash all Newstalk radio and newspaper talked about was money money money. So called easy money boomers could make by using the equity on their home to buy into new developments to gouge tenants. Or buy an existing house , dump a few grand into it for surface renovations , not pay the mortgage for 6 months. Sell for profit and only pay the arrears then. Young HOME hunters couldn’t get a look in. It was all whipped into a frenzy by newspaper supplements, Eddie Hobbs , every second of programming on Newstalk Radio. I know because it was the only station we could play in a retail shop because of royalty issues with music on other commercial radio stations, but I switched it off after getting sick of 6 months of old farts going on and on about investments day after day. This resurgence in newspaper supplements and all the Eddie Hobbs 2.0’s out there is just to feed an artificial bubble to get the second house owners out of negative equity and sell the property they couldn’t flip because they got caught out. Except its not going to work. Another recession is right around the corner . And the mean farts that planned to sell and break even are getting notions of hanging on for profits after all .Profits that are never going to come and they are going to get caught out again. The smart people will break free by tricking new investors to buy the properties off them while the wave holds. When it crashes, 2008 is going to look like a picnic. Help the rental crisis? It’s one landlord selling to another. The number of rental properties wont increase. And they are helped by the banks that should be helping new home buyers that WILL pay the mortgage. But instead the banks cite stress tests that aren’t based in reality and siding with well to do boomers who could easily pay the new mortgage even without tenants because they get 250 each a week old age state pension ( that we wont ever see the likes off when the time comes) but wont pay when things get choppy . hide their assets . claim ” family home” , “poor me pensioner” etc while some idiots actually believe and feel sorry for them. As we have all seen. I look around and see more and more suburbanites driving 161 to 191 4X4s Range rovers and assorted tosser mobiles on the PCP , boy are they in for a shock , but then again not really because the renters will bare the brunt . USC payers too. Just like before.

        2. george

          If you do the maths on foregoing 2 years rent and putting it up to €1000 vs increasing the €800 by 4% per annum vs it is not actually that much more money and involves much more hassle.

          He should have been happy that the tenant was paying his mortgage for him.

    2. class wario

      The poor dears. However will they cope with earning a few hundred euro less than their other landlord buddies per month for all the hard work they do ehhhh owning an otherwise valuable piece of property.

    3. Termagant

      You can still make a decent income far below market rate though
      The country hasn’t changed so much in the past 5 years that what was once an acceptable income is no longer
      Always squeezing the most money theoretically possible out of a given situation no matter what the damage is called greed my man

      1. martco

        well @Termagant
        all those latest iPhones, deDietrich kitchens & 192 EV’s ain’t gonna buy themselves now are they?

        +1

    4. Custo

      When the current tenancy ends you can increase the rent to the mythical ‘market value’

      That why loads of tenancies were ended when the rpz were introduced.

      The 4% only applies to the current tenancy.

  2. Cian

    Scary, the advice in the IT (if you aren’t willing to settle for less rent) :

    The choices before you are as follows:
    1. Engage in substantial change under the definition of the Act and put yourself in a position to obtain open market rental value.
    2. Sell the property if you are in a positive equity situation.
    3. Finally, take an approach I have encountered recently with landlords taking the property off the market for two years and leaving it vacant, refurbishing it and then going to the market looking for the open market rent.

    1. george

      Numbers on option 3 aren’t even that great. If the current rent is €1000. Increasing the rent by 4% over 5 years would bring in €34,734. Leaving it idle for 2 years and increasing the rent by 20% would bring in 37,459. That is only €544 per year in the first 5 years but you would have the hassle of doing regular checks on the vacant property for 2 years and assuming the vacancy doesn’t result in repairs being required.

      In five years time we could be in recession again and rents could drop massively. Who knows?

  3. eoin

    It’s almost like the only part of the loss-making (€1.5 million loss in 2018) Irish Times operation that is pulling its weight is the MyHome.ie business, and that business needs buoyancy and ever-increasing values to sustain itself.

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