Rent is increasing in many places in Dublin

RainbowRose81

I was looking on daft and I noticed that a lot of the rent has increased in Dublin. I don't understand I mean Ireland is an expensive country to live in even if you have a decent job and things are going well for you but the fact is the country is a mess and it's only growing worse, with unemployment rising and large scale emigration. How can they increase rents, it seems they not in touch with reality and actually don't know how much of the reality of how it is for many people especially the unemployed, people with disabilities and single parents in this country.

djimi

They charge what people will pay. If the demand is there and its a desirable area to live then chances are rent will stay static or even go up rather than down. It has nothing to do with being in touch with reality; if something is too expensive it wont get rented, so if they are moving then the demand is obviously there.

stevedublin

djimi wrote: »

They charge what people will pay. If the demand is there and its a desirable area to live then chances are rent will stay static or even go up rather than down. It has nothing to do with being in touch with reality; if something is too expensive it wont get rented, so if they are moving then the demand is obviously there.

People paid lots of money to buy in 2006.

Sir Digby Chicken Caesar

and if people are taking out 100% mortgages they can't afford to pay to rent apartments, we might be in some trouble in the future...

CricketDude

More people moving to Dublin for jobs these days. Increasing demand for rental accommodation. The flip side is cheaper rents in the country.
We've had 4 relatives come up to stay with us the last few months.

As soon as they got jobs we told them to go rent. Last one leaving Friday. Some of them would just stay and eat you out of house and home if you're too soft.

Icepick

any stats to back that up?

stevedublin

Sir Digby Chicken Caesar wrote: »

and if people are taking out 100% mortgages they can't afford to pay to rent apartments, we might be in some trouble in the future...

I dont think banks are giving 100% mortgages anymore...

stevedublin

djimi wrote: »

They charge what people will pay. If the demand is there and its a desirable area to live then chances are rent the selling price will stay static or even go up rather than down. It has nothing to do with being in touch with reality; if something is too expensive it wont get rented sold, so if they are moving then the demand is obviously there.

People were thinking the above in 2006

Lawrence1895

Maybe some landlords increase the rent, because they have to pay that Household Charge or Water Charge? They are not living in the house/apartment, so it's fair from their point of view, that the tenants have to pay, imo

djimi

stevedublin wrote: »

People were thinking the above in 2006

Im sure they were, and in 2006 the demand was there for houses from people who had the money to pay the asking price.

My point is that if in a given area the demand for renting is great enough and people are willing to pay the asking prices then the asking prices will creep up if landlords think they can make more. Theres no great mystery to what the OP is asking; its not a game where the landlords have to play fair and decrease rent just because people feel that they should be paying less rent. If Im renting a house for 800 and 10 people all want to rent it next year then chances are Ill ask for 850 or 900 and see what happens.

thesteve

http://www.fairrent.ie/

This has been running for a few weeks and accuracy will improve over time.

gaius c

Rents increased back in 2008/2009 as well when landlords were under the mistaken impression that increased mortgages were a cost that could be "passed onto" tenants.

With the way the market is, short-term fluctuations have to be expected.
Come back in six months and see how rents are doing then.

Westernman

A friend who works in banking was telling me that interest rates may start to rise again shortly. There is still a glut of properties in Ireland yet they are unadvertised and vacant. This interest increase rise may force landlords to release more of these properties onto the market. Thus bringing rental price down again.

Mr. Presentable

But the discussion is rent in Dublin. Demand and weak supply will drive up rent. It is entirely immaterial that there are 30,000 vacant houses in Cavan/Leitrim.

Spiritofthekop

My rent went down last month and I live in a supposed desirable part of Dublin!

Cuddlesworth

Asking prices are going up. That doesn't mean rental agreements are.

gaius c

All prospective tenants and landlords should really get the property bee add-on for Firefox. You can monitor properties for how long they have been on daft and if the asking rent has been dropped. It's very easy to see the landlords who priced too high and ended up chasing the market or waiting months to fill the place.

Proper landlords know the value of keeping vacancy periods low. The ones sticking the asking rent up by €50 because they read something in the newspaper, haven't done their own research and spend months trying to fill it are the amateurs who will lose out.

gurramok

Mr. Presentable wrote: »

But the discussion is rent in Dublin. Demand and weak supply will drive up rent. It is entirely immaterial that there are 30,000 vacant houses in Cavan/Leitrim.

There are still many vacant's apartment blocks near me in the Docklands as well as in the likes of Sandyford which NAMA are holding back.

The OP said 'many places', which ones?

Mr. Presentable

gurramok wrote: »

There are still many vacant's apartment blocks near me in the Docklands as well as in the likes of Sandyford which NAMA are holding back.

The OP said 'many places', which ones?

Yes, but these are not part of the supply, so can't effect the demand. If they are not on the market then, for rental purposes, they may as well not exist.

mikemac1

Any place I've ever viewed and was interested in I put on my haggling hat
Maybe they are pricing them up knowing their next tenant is going to knock the monthly rent down
Those asking prices you see OP, they are not realy the final figure that's agreed on
Landlords are free to ask for whatever they want but that doesn't mean they'll get it


There may be a few landlords who will try to put up rent on existing tenants with these new charges.
But it's a risky tactic, if the tenant calls their bluff and walks away then the vacancy will wipe out the proposed increase and more


When I moved to Dublin years back you got the Evening Herald and queued with others to view flats and if it was half decent you had your deposit in cash with you
Bad times and never coming back I hope
Showing my age

CricketDude

Westernman wrote: »

A friend who works in banking was telling me that interest rates may start to rise again shortly. There is still a glut of properties in Ireland yet they are unadvertised and vacant. This interest increase rise may force landlords to release more of these properties onto the market. Thus bringing rental price down again.

Noone knows what will happen with interest rates. Go back and look at every time people predict where interest rates are going (eg 6 months ago). If someone tells you they know where interest rates are going, slap them, they are a bul****ter.

snubbleste

CricketDude wrote: »

Noone knows what will happen with interest rates. Go back and look at every time people predict where interest rates are going (eg 6 months ago). If someone tells you they know where interest rates are going, slap them, they are a bul****ter.

I don't think the poster was referring to the ECB rate, but those set by the banks on their products - mortgages..

who_ru

what about the dead hand of NAMA holding back rental stock in many areas of Dublin?


NAMA - THE ENEMY!!!!

onedmc

Its supply and demand. I have place up for rent and have received more enquires in the last 3 days then ever before.

I figure I should have put the rent up. There obviously isnt enough available in the city, I figure I'll have it rented in less than a week, the first time ever I did that.

Still running at 40% less than at the peak rental income and my costs have gone up by 75% so I still have a long way to go to get back to profitabiliy.

BostonB

Its supply and demand. A lot of the spare capacity is in less desirable locations. The shortage is in the desirable locations.

TommyTheGun

mikemac1 wrote: »

Any place I've ever viewed and was interested in I put on my haggling hat
Maybe they are pricing them up knowing their next tenant is going to knock the monthly rent down
Those asking prices you see OP, they are not realy the final figure that's agreed on
Landlords are free to ask for whatever they want but that doesn't mean they'll get it


There may be a few landlords who will try to put up rent on existing tenants with these new charges.
But it's a risky tactic, if the tenant calls their bluff and walks away then the vacancy will wipe out the proposed increase and more


When I moved to Dublin years back you got the Evening Herald and queued with others to view flats and if it was half decent you had your deposit in cash with you
Bad times and never coming back I hope
Showing my age

I will be a first time renter this summer. My gf has been renting for over 8 years in various properties. She wouldnt be a haggler but i would! Basically, would i be wasting my time putting an offer lets say on the table for a rental property?? i.e landlord wants €950 , Id rather offer €800 or so naturally. Would landlord take into account 2 professionals with less hassle than a family with 2/3 kids for example?

Thanks,
Tom

shoegirl

RainbowRose81 wrote: »

I was looking on daft and I noticed that a lot of the rent has increased in Dublin. I don't understand I mean Ireland is an expensive country to live in even if you have a decent job and things are going well for you but the fact is the country is a mess and it's only growing worse, with unemployment rising and large scale emigration. How can they increase rents, it seems they not in touch with reality and actually don't know how much of the reality of how it is for many people especially the unemployed, people with disabilities and single parents in this country.

Landlords costs are escalating due to the cost of household, 2nd home charges and reductions in allowances for tax reliefs. They will try to pass these costs onto tenants. That doesn't mean that the end rent will match the asking rent, but they may look for a little more to compensate themselves for losses elsewhere.

One thing that might be hitting this is the forced reduction in rent allowance levels. In my experience if you are unlucky enough to be a working tenant when your landlord has many unemployed tenants is that they will try to push the cost to you higher to compensate themselves. There may be an element of that at the moment as the state are starting to come down hard on rent subsidy costs, rightly or wrongly.

In fairness, after over a year of watching carefully I got a gorgeous one bedroom exactly where I wanted it with proper central heating and nice furniture/fittings for about 50-100 less than the current going rate for the area. I suspect that EAs and landlords are advertising in hope rather than expectation.

P. Breathnach

Lars1916 wrote: »

Maybe some landlords increase the rent, because they have to pay that Household Charge or Water Charge? They are not living in the house/apartment, so it's fair from their point of view, that the tenants have to pay, imo

It's futile to increase the rent, no matter how fair you think you are being, if there is nobody willing to pay it.

johnfás

who_ru wrote: »

what about the dead hand of NAMA holding back rental stock in many areas of Dublin?


NAMA - THE ENEMY!!!!

Mostly not in places people want to live though. That's the whole reason NAMA exists, overdevelopment in bad locations. Even if the Sandyford stuff came into supply it doesn't change the fact most people don't want to live in Sandyford. Rents in Dublin 2, 4 and 6 will continue to go up because 1) there are lots of people who want to live there but not buy 2) theres not actually that much development in those areas 3) there are plenty of people still in work and able to pay rent, particularly new entrants to the market without debt - which happens every year people enter the workforce.

ProudDUB

TommyTheGun wrote: »

I will be a first time renter this summer. My gf has been renting for over 8 years in various properties. She wouldnt be a haggler but i would! Basically, would i be wasting my time putting an offer lets say on the table for a rental property?? i.e landlord wants €950 , Id rather offer €800 or so naturally. Would landlord take into account 2 professionals with less hassle than a family with 2/3 kids for example?

I imagine it would vary a lot from landlord to land lord. Some would rate how well you take care of the place over the finances, but I imagine that most landlords would see the finances as being the #1 priority.

The difference between 800 and 950 is 1,800 euros a year, or 3,600 over 2 years. That is A LOT of money to ask a LL to give up just because you don't have kids, especially as that can change in the blink of an eye, or in the blink of one burst condom.

If your landlord has a mortgage to pay in the 950 euros or higher region, that doesn't give him much wiggle room regarding the rent he can or will accept. Add in the NPPR charge, the new household charge, the lowering of mortgage tax reliefs & the looming property tax, landlords have less and less incentive to cut their tenants a deal.

Lets say you and your gf rent a place for 2 years. Or a couple with kids do. Even if the kids scribbled all over a bedroom wall needing it to be repainted, or the little darlings ripped a sofa to shreds and it had to be replaced, the land lord could hang onto the tenants deposit to compensate him for those expenses. He could do that pretty easily on 3,600 + 950 with A LOT of change left over.

Do your homework. Go on Daft and see what properties similar to the one that you want are going for. Call a few estate agents and see what they will accept in reality, not just the asking price. If you feel that 800 euros is a fair price based on your research, go for it & make your offer. Tell the LL or EA you are making that offer based on research that you have done, so that they don't immediately discount you as being cheeky or overly cheap, but don't be surprised if they say No.

Solair

I had a situation in Cork where the landlord rang looking for a 150 per month increase to cover rising mortgage costs.
I explained that mortgage costs had nothing to do with it and that I could easily find equivalent or better property for the same price or less!
She got really angry and started ranting about how she'd been such a great landlord and fixed the windows etc etc
This was followed by a series of pestering phone calls trying to justify a rent hike. So, we gave her notice and moved out.

There's a BIG lack of reality amongst many landlords and a lot of "my property is worth more than this" type notions.

Property is only worth the market value. There is no intrinsic value other than that.