When the budget is announced, will you be asking your landlord..

angel01

for a reduction in rent?

If taxes are going up, is it only right that we ask for a reduction or what do you think people should do?

D3PO

angel01 wrote: »

for a reduction in rent?

If taxes are going up, is it only right that we ask for a reduction or what do you think people should do?

did you ask your landlord to increase your rent when tax rates were cut and credits increased ?

I mean that would only have been right :rolleyes::rolleyes:

Exactly

ncit9933

Sure maybe your landlord might get the reduction in mortgage from the bank...

seamus

Taxes are irrelevant, it's all about supply and demand. If your landlord can get someone else to take your place, then he doesn't care that you're being taxed more (so is he, remember).

The latest daft.ie report indicates that rents are stabilising, though the level of rental stock still remains high, so maybe there's another fall to come.
This indicates that rents will likely remain flat next year.

An Bradán Feasa

I think landlords will have two choices.


1. They agree to reduce rent, based on the fact that we'll all have lower incomes after the next budget.

2. Their properties lie vacant, taking in no rent.


It's a no-brainer!

D3PO

An Bradán Feasa wrote: »

I think landlords will have two choices.


1. They agree to reduce rent, based on the fact that we'll all have lower incomes after the next budget.

2. Their properties lie vacant, taking in no rent.


It's a no-brainer!

yeah because if they dont reduce them people are going to move out and live on the street in protest :rolleyes::rolleyes:

I cant wait the budget will happen and magic deflation of the exact same amount will occur overnight. Its gonna be great :rolleyes::rolleyes::rolleyes:

maximoose

An Bradán Feasa wrote: »

I think landlords will have two choices.


1. They agree to reduce rent, based on the fact that we'll all have lower incomes after the next budget.

2. Their properties lie vacant, taking in no rent.


It's a no-brainer!

theres another choice, get a new tenant. which wont be that hard.

am i bovvered

There is a very high chance that the cost of owning a rental property will significantly increase in the budget anyway. There are a lot of landlord that have to put there own cash towards paying those costs. I realise it was a decision they made and they must live with the consequences of that.

At the end of the day it is the market that will decide on the average rent.

D3PO

maximoose wrote: »

theres another choice, get a new tenant. which wont be that hard.

we will have none of your logical thinking in here....

Tax will go up by 5% and then TV's, rent, clothing, food, utilities, everything will reduce by 5% so as to maintain the same standard of living for everybody and that will magically fix the countries problems :rolleyes::rolleyes:

Its all done by a special group of people called the "Deflation Fairies"

How dare you suggest people will have to take a drop in their standard of living ....

angel01

Personally I feel I am already paying too much rent and if the taxes go up (which they will), I will be struggling and I will have to ask for a reduction, I doubt I will get anywhere though

An Bradán Feasa

D3PO wrote: »

yeah because if they dont reduce them people are going to move out and live on the street in protest :rolleyes::rolleyes:

I cant wait the budget will happen and magic deflation of the exact same amount will occur overnight. Its gonna be great :rolleyes::rolleyes::rolleyes:

There's always the option of moving back in with family. Obviously this option isn't for everyone! But in my case, if it's too expensive for me to rent, I'll have no choice.

D3PO

angel01 wrote: »

Personally I feel I am already paying too much rent and if the taxes go up (which they will), I will be struggling and I will have to ask for a reduction, I doubt I will get anywhere though

nobody is saying you cant ask but you seem to think that becasue your feeling a pinch that your landlord should feel the pain on top of the pain he or she will already be feeling as a result rather than you.

ultimatly the market will decide if you have any chance on a reduction. If you dont then you move somewhere more affordable for you.

An Bradán Feasa

maximoose wrote: »

theres another choice, get a new tenant. which wont be that hard.

Quite right, but in a lot of cases, an apartment/house will lie vacant while the landlord is waiting for prospective tenants. An empty apartment/house takes in no rent. Landlords may be better off financially agreeing to a small reduction in rent in order to avoid, let's say, a month with no rent coming in.

D3PO

An Bradán Feasa wrote: »

There's always the option of moving back in with family. Obviously this option isn't for everyone! But in my case, if it's too expensive for me to rent, I'll have no choice.

exactly or renting a room, or moving to a cheaper area, or moving into a house share, or somewhere smaller etc etc etc

Just as everybody shouldnt expect they should have the right to buy property, people shouldnt expect they have the right to rent certain properties either.

Harsh perhaps but a dose of reality does nobody any harm

angel01

D3PO wrote: »

nobody is saying you cant ask but you seem to think that becasue your feeling a pinch that your landlord should feel the pain on top of the pain he or she will already be feeling as a result rather than you.

ultimatly the market will decide if you have any chance on a reduction. If you dont then you move somewhere more affordable for you.

All I am trying to say is that I feel I am paying way over what others are and depending on how badly off I will be, I will have to put it to him of what my situation is. (only wages coming in is mine)

An Bradán Feasa

D3PO wrote: »

exactly or renting a room, or moving to a cheaper area, or moving into a house share, or somewhere smaller etc etc etc

Just as everybody shouldnt expect they should have the right to buy property, people shouldnt expect they have the right to rent certain properties either.

Harsh perhaps but a dose of reality does nobody any harm

In my case I'm probably living in one of the cheapest areas to rent!

At the end of the day, I view landlords as business-people. They chose to buy their properties and to take the associated risks. I have to look after my own interests. I won't be shedding a tear for any landlord losing money, harsh as that sounds!

D3PO

An Bradán Feasa wrote: »

In my case I'm probably living in one of the cheapest areas to rent!

At the end of the day, I view landlords as business-people. They chose to buy their properties and to take the associated risks. I have to look after my own interests. I won't be shedding a tear for any landlord losing money, harsh as that sounds!

and why should you its not your problem, Im not sticking up for landlords here just trying to add some balance.

My comment was in relation to the original post.

The budget has nothing to do with the rental position somebody has just as when taxes came down that equally had no position in determining rent.

Clearly the amount of net income somebody has will determine what their willing to pay for something, but the fact is discresionary spending is what gets hit first.

Things like rent, utilities, clothing, and food are the last things to be impacted as they are all essentials to everybody.

So the thought process that rent should come down becaue tax goes up is a false premise.

magneticimpulse

maximoose wrote: »

theres another choice, get a new tenant. which wont be that hard.

I think it will be hard. Ive lived abroad a few years and wanted to come back to Ireland...i know that seems unlikely now. But all my cousins are getting out of Ireland. I have 1 cousin a week that is currently leaving. In the 18 - 35 year old bracket in the family, none of them have stayed or are going to stay in Ireland.

I think it will even become difficult to rent property!!

tara73

yes, I will.
and I think almost everybody should, as most rents are still too high and as wages are falling (higher taxes), there's no question why rents shouldn't.

D3PO

tara73 wrote: »

yes, I will.
and I think almost everybody should, as most rents are still too high and as wages are falling (higher taxes), there's no question why rents shouldn't.

before making this kind of statement you should have a basic grasp on economics.

ncit9933

angel01 wrote: »

Personally I feel I am already paying too much rent and if the taxes go up (which they will), I will be struggling and I will have to ask for a reduction, I doubt I will get anywhere though

and do you not think so landlords and in the same situation when a investment property that they can't sell and rental income that doesn't near cover the mortgage....

djimi

Surely all this is completely irrelevant if you have a fixed term lease? The budget can say and do what it likes; you have a legal contract to pay x amount for the term of that lease.

silja

djimi wrote: »

Surely all this is completely irrelevant if you have a fixed term lease? The budget can say and do what it likes; you have a legal contract to pay x amount for the term of that lease.

Yes, but asking can't hurt!
Speaking as a landlord, my last tenants asked for a reduction in rent 8 months into a one year tenancy as one of the couple had lost her job, and rents had been falling in the area. I agreed as long as they signed a new one year lease with the reduced amount, which they did. I got to keep a good tenant and they got to pay less rent.

In terms of rent reduction after the budget, it depends on what exactly the budget says. I would consider giving my tenant a rent reduction if her liabilities (tax, bills etc) is increasing significantly more than mine. I already pay 20% tax on my property though, so I really cannot afford to cut my rent much more.

PS: Remember not all landlords bought investment properties and are operating it as a business; many moved abroad due to economic or family reasons (like myself), or moved back in with family themselves and are renting out their home because they cannot afford to live in it.

Scambuster

D3PO wrote: »

before making this kind of statement you should have a basic grasp on economics.

I don't agree with you. You can have demand for 100,000 rentals in some country but if everybody earns 500 quid a month then that will be reflected in the rental prices.

Demand isn't a uniform entity and it exists accross a range of prices. Less money will mean more demand for lower priced rentals, larger households etc. This will drive prices down across the board.

Distorted

Sure, because landlords won't have to pay higher taxes as well on their rental income or their salaries that are subsidising the mortgages that the rents don't cover!

I was being sarcastic there.

And to be perfectly honest, I'd rather have a property empty for up to 3 months than a tenant constantly looking for ways to breach their lease terms - that tenant tends to be an expensive one in other ways too, in terms of breaking things, so yes, I would rather have that property empty and lose that tenant.

Klingon Hamlet

Scambuster wrote: »

I don't agree with you. You can have demand for 100,000 rentals in some country but if everybody earns 500 quid a month then that will be reflected in the rental prices.

Demand isn't a uniform entity and it exists accross a range of prices. Less money will mean more demand for lower priced rentals, larger households etc. This will drive prices down across the board.

True plus with mass emigration and reducing rent allowance on the cards, tenants will be scarcer and poorer. And if rates climb, landlords cannot refuse money.

Snakeblood

seamus wrote: »

Taxes are irrelevant, it's all about supply and demand. If your landlord can get someone else to take your place, then he doesn't care that you're being taxed more (so is he, remember).

The latest daft.ie report indicates that rents are stabilising, though the level of rental stock still remains high, so maybe there's another fall to come.
This indicates that rents will likely remain flat next year.

I dunno. If 150 thousand people are scheduled to leave the country, generally the younger ones without property, I don't see how rent prices will stabilise. PLus the government will probably take a chunk out of Rent Allowance, so LLs who do rent to the unemployed will have to live with less, and people who are paying actual cash will probably push the rent lower too. I can see Landlords might resist, but I think the balance is pushing to a lowering of rents.

Gummy Panda

I'm curious to see what the budget does to rent allowance and what its effect on the rental market is.

Cookie_Monster

fingers crossed the gov axes rent allowance by a decent percentage in the budget as that's about the only way rents are going to continue to fall by decent amounts.

Damie

With proposed Property Rates and Water charges, it will more than likely end up that landlords will try to increase rent. Hang on a second before you shout me down....

The question is who will pay these rents?
Its a renters market, emigration is increasing thus more places to rent....
Less disposable income which means people may have to 'downgrade' or simply barter with the landlord...but now they have more choice and the threat of leaving may force the landlord to accept the inevitable.

Its going to be tough for everyone after the budget but even more so for Landlords.....


It will make for interesting times but I reckon that the high end rents will take a battering!

Snakeblood

Damie wrote: »

With proposed Property Rates and Water charges, it will more than likely end up that landlords will try to increase rent. Hang on a second before you shout me down....

The question is who will pay these rents?
Its a renters market, emigration is increasing thus more places to rent....
Less disposable income which means people may have to 'downgrade' or simply barter with the landlord...but now they have more choice and the threat of leaving may force the landlord to accept the inevitable.

Its going to be tough for everyone after the budget but even more so for Landlords.....


It will make for interesting times but I reckon that the high end rents will take a battering!

That all makes sense too. I think Landlords will probably have to accept that they're not going to profit off their properties right now though. They'll probably try to pass costs on until people start downgrading their expectations of accomodation and leave the newer rental properties alone.