Rental Market gone insane!!!

Cheese Princess

ronbyrne2005 wrote:

why not try somewhere on the northside? Buses are fairly efficient from nortside suburbs near to city centre. Phibsboro, Glasnevin, Drumcondra, Santry are all very convenient for working anywhere near city centre.

I would absolutely try any of these places if I wasn't working in Sandyford....I just couldn't cope with the commute!

ronbyrne2005

Since shortly after the new EU countries came in in 2004 rents rose which is understandable. Theres probably 200k people from the acession countries in Dublin area and even though a lot of them live ten to a house they still helped drive rents up or prevent them falling further since mid/late 2004. The guy from DAFT has said this many times. So if the economy slows down as is predicted and theres less jobs for these migrants rental demand could drop a fair bit.

Cheese Princess

Well after 5 weeks of searching we have finally found a place! Hurray!! We were very lucky that the landlord made appointments instead of having an open viewing and we got in first and he liked us. We ended up having to go a little over budget to 1150 and it's a little less accessible for work than some other places but at this stage I am so relieved I don't care. It's a lovely apartment too and the landlord seems clued in.
So I guess it's worth persevering!

Sponge Bob

its fairly obvious whats happening in Dublin .

long term landlords hanging in, they are getting a bit more rent recently
short termers are cashing out and selling , they were mainly in there for capital gain .
supply is down a bit in the rental market
ex rentals coming up for sale in the market but not shifting and lying empty .

all clearly evident in these graphs here (scroll down)

http://daftwatch.atspace.com/

(you could also check with the PRTB who are probably deregistering a fair few Dublin properties nowadays)

short term until at least october it will get worse, long term not .

Tea drinker

Sponge Bob, thanks for keeping us informed, love reading your stuff.

CheeseyPrincess(!) Well done on getting the new place. I know from a few onths back what it's like, I looked at an awful lot of junk, landlords looked dodgy, or I looked dogdy to them! It's nasty. Am paying through the nose at the moment (1400), but it's a nice place, and close to work, and I am too old to live in sh!t.

Looking at Sponge Bob's stuff certainly ties in with a restriction of supply for renters. Again making us more uncompetitive, with no explainable gain.

Sponge Bob

May I add that this is a purely Dublin problem.

Nationally 16%-17% of the housing stock is empty but in Dublin this figure is in the order of 6-8%. If certain landlords cash out the number of empties could rise for a while as they try to shift their premises at high prices but eventually things will settle down.

Elsewhere across most of the country the oversupply is so great that I cannot really see a spike in rents occuring as landlords cash out . Many of these Dublin landlords could be quite a while cashing out (to other landlords in some cases) during which time the rental stock could be affected, I fear that the worst demand/supply equation for the Dublin renter will be in september/october when the student cause a spike, note the drop in premises for rent at this time of year in the daft stats I linked a few posts back.

Ultimately the problem is that at present a landlord will make more money putting his cash in a deposit account (even after dirt tax) Than renting a premises out brings in relative to its value.

If I buy a €350k shoebox in central dublin I may pull in €1k a month rent 12 months a year. At the outside I will pull in €1.1k or €13.1k per annum.

€13.1k for an asset worth €350k is less than 4% return and thats before management charges and redecoration and repairs or stuff.

I'd rather leave leave the money in the Bank TBH, the rise of the high interest deposit account in the past 2 years is an interesting development .

Having said that, if a lot of landlords try to sell this year and fail...leaving the properties empty on the market for years maybe....rents could rise 20% this year alone but its not a sustainable rise in my opinion.

The_Conductor

I think its a good time to revisit this thread. Would people like to post about their current experiences renting? Annecdotal evidence suggests that average monthly rent has fallen almost 20% in the greater Dublin area- but particularly in the North Inner City, North County Dublin and Dublin West (to include Blanch/Lucan) areas.

People's current experiences would be appreciated.

ionapaul

I've been renting a nice single room in Rathmines for the past few months and the rent recently went up from €500 to €550...am half thinking of leaving as a result. I get free wireless broadband and basic cable but even still, the rent increasing by 10% sticks in my craw.

Ste.phen

If you left and the room was empty for a month they'd be down 550 quid. (So they'd be better off leaving your rent at 500 for 11 months before trying to raise it again...) Maybe they'd reconsider the increase based on that?

Then again, maybe they'll find someone willing to pay the 550... hard to know.

mikemac

Renting a small but modern flat in a fantastic location. It's in Dublin 3 and an easy 15 minute stroll to work
Paying €550 per month and I’ve been a good tenant for the last two years, always paid on time and never had issues with landlord.

Landlord wants €600 and is telling me “market rates have increased substantially”
It’s true I pass less then the other flats but they were vacant for 2 months plus while they waited to get a tenant.
Two years ago I queued with 16 people to get the flat. It's not like that in Dublin anymore.

This landlord is stubborn and it seems would rather leave a property vacant for months then negotiate.
I dunno, they lost a good tenant for the sake of €50. Assuming a month of vancancy surely a landlord should be doing everything to keep long term tenants, no?
Besides, my bedsit days are over!

heggie

coming to end of lease on a 1 bed in D14, they are increasing rent by a few percent, and we're outta there! but there is definately better value out there now. Letting agent keep ringing to arrange viewing where we are now, but hardly anyone shows. Plus from looking at daft, a lot of properties that I have saved for a couple of months, still have not been let.

Also, there are some bloody crazy prices, 1 bed in 'hazelbrook' in kilmacud and they are looking for 1400 a month! Needless to say that has not been let and I've had it in my daft list for quite a while

Calina

Rent is due for review in a few weeks' time. Will know better then.

professore

micmclo wrote: »

Renting a small but modern flat in a fantastic location. It's in Dublin 3 and an easy 15 minute stroll to work
Paying €550 per month and I’ve been a good tenant for the last two years, always paid on time and never had issues with landlord.

Landlord wants €600 and is telling me “market rates have increased substantially”
It’s true I pass less then the other flats but they were vacant for 2 months plus while they waited to get a tenant.
Two years ago I queued with 16 people to get the flat. It's not like that in Dublin anymore.

This landlord is stubborn and it seems would rather leave a property vacant for months then negotiate.
I dunno, they lost a good tenant for the sake of €50. Assuming a month of vancancy surely a landlord should be doing everything to keep long term tenants, no?
Besides, my bedsit days are over!

Yes he should if he has half a brain .... think of it like this, if he was a business renting photocopiers with 2 customers for his product, one that paid on time every month € 600 and the other who was always late paying, always giving hassle, kept breaking the machine and paid € 650 ? Which customer do you choose ?

So your landlord is an idiot IMHO. Maybe try negotiating a longer lease at a reduced price, and let him keep it out of your deposit if you break the lease, or he pays you vice versa?

adam.number2

Rental places still very hard to get... rents rising all the time as people holding off buying and continuing to rent. New guy just started work here, finding it impossible to get a place. His description sounds like that of the OP a year ago, queues of people waiting etc. That's Dublin btw, might be different elsewhere.

bugler

Rents are not rising. I don't know if your description is of someone looking for a room, but from analysis of Daft using the property bee the trends are rocketing rental supply, falling rents and massive stagnation of properties that just aren't shifting.

Where I live must have an increased rental supply of 80-100% on three months ago, with rents suffering as a result. Those that aren't dropping their rent are remaining up for in excess of a month.

SkepticOne

It is interesting to note that this thread was originally posted during a time of historically low inventory on Daft. This was a time when selling prices had peaked and investors were dumping their tenants in order to get out of the market. Shortly after this rents started to rise significantly due to the shortage of rental accommodation and reports started to appear in the media about rising rents.

http://daftwatch.atspace.com/



Since then there's been a massive rise, beginning around September of last year. Now we have an unprecedented amount of property available for rent which should drive rents down.

The last couple of Daft rent reports show rents falling gradually but there still seems to be a view out there that rents generally are rising. I would suspect there's still a shortage if accommodation in central Dublin and probably always will be. This might be the source for anecdotes of price rises.

It is worth checking out the rental section of IrishPropertyWatch here

Another source of the perception of rising rents may come from existing tenants. A landlord will never approach an existing tenant offering to reduce rents (unless that tenant threatens to leave) but may well do so to increase rents.

Meathlass

Again this seems to be a Dublin problem. I'm renting in Clonmel in Tipp. Lots of 3 and 4 bed houses for rent for 800 upwards. Having rented in Dublin for a year in Rathfarnham I know what it's like in Dublin though. Have to say though that the house I'm in now (80 euros a week ensuite) is shocking, no insulation at all. It's a detached 2 storey in an estate, built in last 2 years but I can hear all my flatmates in their rooms at night, watching tv, chatting on phone etc. I can mute my tv in my room and listen to the tv downstairs instead. I've rented plenty of places throughout the country in the last 5 years and this is the worst ever. Are there no standards at all in building regulations? It's a very family orientated estate with not that many people renting so God knows how they get on. Even though it's a new house on 3rd letting you can see how shoddly the builders finished it. Sign of the times I suppose.

Kur4mA

Myself and the missus rent a small 1 bed apartment in Ongar, Dublin 15. Monthly rent is 1000 Euro. We've been here since September last year and hope to be out before the lease finishes in September.

We're hoping to buy our first place together and have spotted a very nice 2 bed apartment close by which we're viewing next week.

Supercell

Definately coming down.
This time last year I was checking out daft and in my price range (<1000€ p/m) there was bugger all non bedsits in Dublin's southside, these days I'm spoilt for choice and can even find some two beds - totally unheard of this time last year.

Looking at daftwatch rentals figures can only imagine the rental market becoming better and better for us renters.

johnnyskeleton

micmclo wrote: »

Landlord wants €600 and is telling me “market rates have increased substantially”

More likely, his mortgage has gone up €50 and he's trying to put it on you.

Kintarō Hattori

Hmnnn interesting. Myself and the missus are paying €1000 a month in dublin 7 and the landlord wants to increase the rent when the lease is up in a month, though by how much I don't know.

The_Conductor

eo980 wrote: »

Hmnnn interesting. Myself and the missus are paying €1000 a month in dublin 7 and the landlord wants to increase the rent when the lease is up in a month, though by how much I don't know.

Hop on Daft and some of the other websites- and get a range of properties in the area. Rents are trending downwards, not upwards......

kaimera

Happened to me too.
Paying 800pm along with my flatmate and the landlord wanted to up the rent 100e each on the new lease.

Clown.

SkepticOne

I think you need to be prepared to shop around if you want to take advantage of increased competition in the rental market. If you stay in one place the landlord won't be exposed to market forces and so will try to pass on increased costs onto the tenant. A landlord will only reduce rent if his property is empty and can't find tenants but he won't know this if he has an existing tenant.

The_Conductor

However a landlord cannot simply pass increased costs onto a tenant- any increases in charges have to reflect market conditions. The big problem is the number of amateur landlords out there who really haven't a clue about business, and are now feeling the heat with increased interest rates. Its not a bad thing- as it may shake the market up by getting rid of the amateurs- but in the interim- its up to anyone renting to know what their rights are

Kintarō Hattori

smccarrick wrote: »

Hop on Daft and some of the other websites- and get a range of properties in the area. Rents are trending downwards, not upwards......

Will do, had a look last night and the average seems to be around €1000 or less. I'll keep looking and print some off for him.

kaimera wrote: »

Happened to me too.
Paying 800pm along with my flatmate and the landlord wanted to up the rent 100e each on the new lease.

Clown.

So what happened?

Afuera

smccarrick wrote: »

its up to anyone renting to know what their rights are

Very good point. It seems to be a little known fact that in most cases all you need to do to stop a rent increase under the current market is lodge a complaint with the PRTB, saying that the landlord is attempting to set the rent above market rate.

highgiant1985

generally whats the busy time of the renting season and whats the quite time? I'm looking at daft at mo and seeing alot of propertys up for rent compared to say when I looked in Auguest last year. Would be interested to know if this is just seasonal as such or what the general treads are usually like.

SkepticOne

highgiant1985 wrote: »

generally whats the busy time of the renting season and whats the quite time? I'm looking at daft at mo and seeing alot of propertys up for rent compared to say when I looked in Auguest last year. Would be interested to know if this is just seasonal as such or what the general treads are usually like.

Check daftwatch. It does not appear to be seasonal. Just over 3 times the amount for rent as this time last year and the trend seems to be accelerating.

kaimera

eo980 wrote: »

Will do, had a look last night and the average seems to be around €1000 or less. I'll keep looking and print some off for him.



So what happened?

He only put it up 100 overall

How nice. Another increase and I'm away.