Southside Dublin Rents Going Up?

MarkMI6

Hey folks,

I'm currently living in the Dublin 6/12 area and my lease is up at the end of February. I got an email from the estate agents (Lowe) saying we have until the end of Jan to decide if we want to stay or renew, but that the rent will go up by €50 p/m 'in line with rents in the area for properties of a similar nature'!

This is probably the only time I've heard in the past 4 years of rent actually going up. Is the estate agent at all correct in this statement or are they just trying to gouge us? If I were to reply contesting their statement, also stating an interest in resigning for another year under the current rent cost, would I get very far do y'all think?

Just generally looking for some advice, the idea of rent increasing seems a bit nuts to me.

kodoherty93

Yeah. They have gone up all around the city. Most landlords have put up 1 beds by €50 and 2 beds by €75. Check daft to see what the other apartments in the area ate going for

littleredspot

Not only have they gone up but you'll also probably have difficulty finding another place. If you like the place I'd pay it.

MarkMI6

littleredspot wrote: »

Not only have they gone up but you'll also probably have difficulty finding another place. If you like the place I'd pay it.

Heh well I like it about as much as I've ever liked any rented property, overlooking the leaking shower unit, various gaps between doors/walls/windows, damp patches, mould in a few corners, lack of insulation etc... once you get past that it's great :pac:

But thanks for the info folks. I guess it's not 2010 anymore when I got €50 off the rent

Zamboni

Reply to them with this...

Rent in Dublin is going down.
We will renew the lease if the rent is dropped by €50 pcm in line with rents in the area for properties of a similar nature.

You have as much proof as they have...

#self-fulfilling prophecy

murphaph

Zamboni wrote: »

Reply to them with this...

Rent in Dublin is going down.
We will renew the lease if the rent is dropped by €50 pcm in line with rents in the area for properties of a similar nature.

You have as much proof as they have...

#self-fulfilling prophecy

There is pretty strong demand in Dublin. The only loser with your plan will be the OP as he fights with other prospective tenants for a new place. The LL will have it filled on the same day.

Tenants were happy to get €50 off when the market was weak, so they should be happy enough to pay €50 more now that the market is strong.

liffeylite

murphaph wrote: »

There is pretty strong demand in Dublin. The only loser with your plan will be the OP as he fights with other prospective tenants for a new place. The LL will have it filled on the same day.

Tenants were happy to get €50 off when the market was weak, so they should be happy enough to pay €50 more now that the market is strong.

Exactly. Rents are going up due to shortage of properties in Dublin. I think you would be wise to take it and fix the rent for a good period if possible. Until banks start lending agai. There arent gonna be many new builds and the shortage will tighten in my opinion. Rent prices are completley out of kilter with purchase price, but thats due to high demand for housing but low mortgage approval and low funding to create new dwellings which exaggerates both problems! Messed up situation!

not even wrong

If you're a good tenant you should be able to bargain with them, €25 and a six month fixed term should be achievable. Remember there is no obligation on you to sign a new fixed term lease, especially now that you have Part 4 security.

Cuddlesworth

murphaph wrote: »

There is pretty strong demand in Dublin. The only loser with your plan will be the OP as he fights with other prospective tenants for a new place. The LL will have it filled on the same day.

Tenants were happy to get €50 off when the market was weak, so they should be happy enough to pay €50 more now that the market is strong.

Doubtful.

First of all, he gives the impression that he has had a 50 Euro reduction since 2008. If that's the case then he almost certainly paying way over the odds already, regardless of the current shortage of property's. Rents in south Dublin dropped like a stone in the last four years.

Secondly, its doubtful that a property which has been occupied for four years straight will be easy to rent at a good rate without a small refurb.

Thirdly there is no guarantee that there will be suitable tenants ready to move in straight away. So there may be up to a 4 week period before occupancy. 4 weeks at a average rent of 1k, 50 euros a month = 500.

I would call their bluff and check out some other property's in the area or other suitable areas.

murphaph

Cuddlesworth wrote: »

Doubtful.

First of all, he gives the impression that he has had a 50 Euro reduction since 2008. If that's the case then he almost certainly paying way over the odds already, regardless of the current shortage of property's. Rents in south Dublin dropped like a stone in the last four years.

Secondly, its doubtful that a property which has been occupied for four years straight will be easy to rent at a good rate without a small refurb.

Thirdly there is no guarantee that there will be suitable tenants ready to move in straight away. So there may be up to a 4 week period before occupancy. 4 weeks at a average rent of 1k, 50 euros a month = 500.

I would call their bluff and check out some other property's in the area or other suitable areas.

I'd check the other threads on here about rental shortages in Dublin before calling anyone's bluff tbh

steve9859

Cuddlesworth wrote: »

Doubtful.

First of all, he gives the impression that he has had a 50 Euro reduction since 2008. If that's the case then he almost certainly paying way over the odds already, regardless of the current shortage of property's. Rents in south Dublin dropped like a stone in the last four years.

Secondly, its doubtful that a property which has been occupied for four years straight will be easy to rent at a good rate without a small refurb.

Thirdly there is no guarantee that there will be suitable tenants ready to move in straight away. So there may be up to a 4 week period before occupancy. 4 weeks at a average rent of 1k, 50 euros a month = 500.

I would call their bluff and check out some other property's in the area or other suitable areas.

The landlord has a month notice period to find someone, and if the property is looked after, a splash of paint and a professional clean will suffice in terms of refurb. So, OP, I'd think carefully before calling the landlords bluff....right now I doubt they'd think twice about remarketing the property

xper

Bear in mind the OP is dealing with an agency, not directly with a landlord. An agency is less likely to have the remit or the inclination to haggle on price and terms and far more likely to say take it or leave it if you call their bluff. An agency is also less likely to be impressed on whether you are a 'good tenant'. I'm generalising of course but my experience and anecdotal evidence
is that most Irish letting agencies do not serve their clients or their client's tenants well. Maybe Lowe is an exception, who knows.


OP,
first, look at the current asking prices on daft and myhome for properties of similar size and quality in your area and determine if the new rent level for your place is in line with this market rate - that's the landlord's legal benchmark for setting the rate and whether you have had discounts in the past or not is not really relevant. I would not be surprised, given the current trend in the Dublin rental market, if the proposed new rent is in line with the market.

Assuming it is then your probable only haggling argument is whether you sign a new fixed term lease with no increase or smaller increase or say you'll elect to go with a Part 4 tenancy at the proposed rate.
With a Part 4, you will at least have the option of keeping an eye out for a new place that is more affordable or (judging by your own description) better quality for the same price! The downside of a PArt 4 if you have been in your current place several years is that you would have to give notice of several weeks which makes searching for a new place tricky in the current constrained supply market

gosuckonalemon

steve9859 wrote: »

The landlord has a month notice period to find someone, and if the property is looked after, a splash of paint and a professional clean will suffice in terms of refurb. So, OP, I'd think carefully before calling the landlords bluff....right now I doubt they'd think twice about remarketing the property

Agree 100%.
It makes sense that rents would be going up, particularly in desireable areas. People are reluctant to buy or want to but can't get mortgage approval.

You should speak to the landlord direct, don't mind the agent. If you are a good tenant I'm sure a compromise can be reached.

And make sure that snag list is fixed before signing any new contracts. I'd never put up with that crap.

P_1

If your lease is up for renewal you're probably in a Part 4 tenancy by now.

That means you don't have to renew anything

strandroad

Check Daft yourself and see if they are bluffing or not. We changed houses a couple of months ago and had plenty of choice (and we don't put up with stuff like mouldy bathrooms, crappy heating etc); but a little later in the autumn apparently the demand was quite strong with all the students back. In our experience every place we saw would give €50-100 off advertised price the moment they saw we are not students and we are looking for long term.
Student peak is past now so check Daft and if you see places you like within your budget, call their bluff. If not, don't.

Cool Rider

Rather than asking here why don't you research on daft that what the property in area are renting for or what the asking rent rent is may be view a few and try to negotiate on prices and that'll give you a real feel and change if you get a better deal as the property you are living in doesn't sounds too appealing:).
People here know as much as whats going in their own backyard but rents going up is just another rumor I am hearing these days and you better work it out for yourself than asking people here.
Sorry if it comes out wrong but every area is different.

Cool Rider

pithater1 wrote: »

If your lease is up for renewal you're probably in a Part 4 tenancy by now.

That means you don't have to renew anything

Its first I have heard of it, doesn't sounds realistic

Zamboni

On Daft...
Just for clarity - It is a database of ASKING prices inputted by PAYING VESTED INTERESTS.

The LL may be entitled to raise a rent to the market value - but
Market Value does not equal Daft asking prices.

Chris_5339762

Cool Rider wrote: »

Its first I have heard of it, doesn't sounds realistic

You dont have to sign a fixed term lease, just write to the agency saying you want to use your Part 4 rights. Someone else will have better details than me, but after 6 months of any tenancy you can claim Part 4.

You dont have to sign another fixed term lease to stay, regardless of whatever crap the agency tell you.

irishguy

I know a few people who moved in D6/2/4 in the last 6 months and found it very hard to get a place and ended up paying a good bit more than they were expecting after they finally found a place. I'd say put

MagicMarker

irishguy wrote: »

I know a few people who moved in D6/2/4 in the last 6 months and found it very hard to get a place and ended up paying a good bit more than they were expecting after they finally found a place. I'd say put

I'm in this position at the minute, I've also had to increase my budget, been looking for months now, same areas.

gaius c

Zamboni wrote: »

On Daft...
Just for clarity - It is a database of ASKING prices inputted by PAYING VESTED INTERESTS.

The LL may be entitled to raise a rent to the market value - but
Market Value does not equal Daft asking prices.

However, if there are no bites, landlords will have to drop their asking prices. This happened after the last big spike in rents around late 2007-early 2008 as a lot of landlords increased rents to cover their increased costs (mainly the mortgage interest rate increases). So for six mad months, asking rents just went up and up and because everybody was at it, tenants were stuck between a rock and a hard place. However, the empties eventually told and their prices had to drop, thus undercutting everybody else and pulling the whole market down.

We didn't panic at the time because we could see the supply spiraling on daftwatch but this one is different. Daft rental supply is slowly but surely dwindling away for Dublin (8,500 then to about 2,100 now) and rents are inching up and up in response. Still don't think it's a sustainable market though.

irishguy

Zamboni wrote: »

On Daft...
Just for clarity - It is a database of ASKING prices inputted by PAYING VESTED INTERESTS.

The LL may be entitled to raise a rent to the market value - but
Market Value does not equal Daft asking prices.

It varies by area. There are a few high demand areas (mainly central/south Dublin) where actual prices are at or above asking prices. Lots of other areas there is room for negotiation as there is more supply.

StillWaters

Rents to rise between 7-10% next year according to this article

http://www.irishexaminer.com/text/business/cwkfqlgbmhkf/

mikemac1

I'd believe the posters on this thread sooner then an estate/letting agent

paul4green

If I were you OP, I'd point out the flaws in the property and tell the Estate Agents that you'll happily pay 50 quid extra, on condition that they are all fixed.
Rental prices are going up in South Dub, certainly in D16 in anyways

who_ru

StillWaters wrote: »

Rents to rise between 7-10% next year according to this article

http://www.irishexaminer.com/text/business/cwkfqlgbmhkf/

a property agent predicting rent increase, who'd of thunk it. Brillant analysis.

but why stop a 7%, why not 10% or 15% as they're just pulling numbers out of their arse at this stage.

Are wages also going up? Nope didn't think so.

murphaph

who_ru wrote: »

a property agent predicting rent increase, who'd of thunk it. Brillant analysis.

but why stop a 7%, why not 10% or 15% as they're just pulling numbers out of their arse at this stage.

Are wages also going up? Nope didn't think so.

I agree with you that such reports are about as useful as a chocolate teapot but wages don't have to increase to see increases in rents in selected areas of the country. The few jobs going will pretty much tend to be concentrated in the cities, especially Dublin. As welfare is cut for young people, they will tend to seek whatever work they can find, even if it means moving out of home to rent in shared accommodation in an "over priced" house in Dublin. Rents are going up in Dublin, the only question is how high will they go.

Berlin has seen rocketing rents for the past 5 years, but wages for most people are not going anywhere.

gaius c

Just on Berlin, it was an extremely cheap place to rent until a few years ago and rents are only now coming up to the level that you'd expect of a major European city. Dublin rents have never been cheap, ever.

Zamboni

The naivety on this thread is incredible.
Nobody has any solid evidence of rent increases in South Dublin outside of anecdotal tales from friends and biased reports form vested interests.
It does not exist.

By pandering to the vested interests with your innocence you are simply assisting the VI's create a self fulfilling prophecy.

People not houses buying DOES NOT EQUAL higher rent in South Dublin.
It is not that bloody simple.
Also, do people think that the folks moving into Dublin looking for work, rent in sunny suburbs of south Dublin?
Or emigration? There are plenty of young educated jobless people and families leaving Dublin, should we quietly forget to mention them too?

To summarise - an alleged scenario is being presented without evidence.
Despite the alleged scenario having multi-factorial causality, one single factor is being presented as the sole cause, whilst ignoring other factors which would negate the possibility of the alleged scenario.

garhjw

With the additional taxes being levied on people with additional properties, it is not surprising they have to increase rents irrespective of increased demand etc.