Landlord asking for 40% increase in rent

noodler

drumswan wrote: »

You badgered them to tell you if they were increasing the rent? Why would you do that?

They have to give you a months notice in writing before increasing the rent, you absolutely do not have to leave at the end of this month.

Coming to the end of a 12-month lease.

I obviously wanted to give myself time to find somewhere else if they increased the rent as expected.

I belive I phrased the question by simply asking if they would be increasing the rent and by how much. There was no negotiation - they simply asked if they took take me not being able to afford the new figure as official confirmation that I was moving out

EDIT: I was given email notification. at the beginning of the month (although as I said I had to go looking for them to tell me).

Tarzana

Pdoghue wrote: »

Dublin 14

Current rent is 1100

What's he's asking for is probably a bit high then, D14 is pretty far out.

groovyg

Tarzana wrote: »

What's he's asking for is probably a bit high then, D14 is pretty far out.

It may be a bit far out but from looking at daft there are very few places around the €1100 mark most two beds are asking for 1200/1300 upwards. One beds aren't that reasonable either

Tarzana

groovyg wrote: »

It may be a bit far out but from looking at daft there are very few places around the €1100 mark most two beds are asking for 1200/1300 upwards. One beds aren't that reasonable either

Big difference between 1200/1300 and 1500. Suppose it depends on what the OP's place is like!

Grandpa Hassan

Greenmachine wrote: »

Come in lower than that. An extra €200 pm is a massive leap in monthly expenses.

But if that's the market level in that area and the tenant can't afford it they just have to move to an area that they can afford. The LL is not there to subsidise the tenant

hfallada

dolihalix wrote: »

was it a 2 year lease or have you signed a second one after a year? continuation can do wonders. are you registered with prtb? if he isn't paying taxes you're far more likely to find common ground. or be plain nasty and keep the rent the way it is. I believe he has to give you 60 day eviction notice after 2 years, in the event you can't agree on rent. someone correct me if 2 separate 1 year leases affect this and change it to 30.

side note, I really hope this is just the dead cat bounce but I'm really afraid it isn't..

Why are assuming the landlord is paying no taxes? And that if he isnt, then you can basically blackmail him? A majority of landlords pay taxes and you are probably more likely to see a Doctor on a revenue defaulter list, than a landlord.

OP if you feel the market is too high. Start looking elsewhere. But there is a serious shortage of housing in Dublin, so your chances of finding somewhere is slim.

Zamboni

Pdoghue wrote: »

Dublin 14

Current rent is 1100

Just offer €1250 or take one of these instead?
http://tinyurl.com/olzqj2k

noodler

hfallada wrote: »

OP if you feel the market is too high. Start looking elsewhere. But there is a serious shortage of housing in Dublin, so your chances of finding somewhere is slim.

Theres a huge number of landlords on this forum so I expect people to haver this kind of advice (take it or leave it) but I really feel something more sustained is going to have to happen in the near term to manage rental costs.

jmayo

JohnDx wrote: »

We should all go homeless looks like our government may be given free houses away soon.

I think if you sat down a number of years ago and tried to imagine the most dysfuncitonal accommodation market in the world you would not ever have dreamt up our one.

It is now gotten to a stage where there is a sizable chunk of people sitting in properties yet not repaying their debts, there is very little mortgage lending but hugely increased prices in some areas, and now low paid workers can't even afford to rent somewhere never mind buy.

Claw Hammer wrote: »

Happens to landlords all of the time. Sauce for the goose and all that

Claw Hammer wrote: »

They are in the business of providing places to live. Why should they subsidise their customers?

Exactly what I think every time I hear of mortgage restructuring or possible writeoffs for defaulting landlords and tax incentives for landlords. :rolleyes:

dolihalix

hfallada wrote: »

Why are assuming the landlord is paying no taxes? And that if he isnt, then you can basically blackmail him? A majority of landlords pay taxes and you are probably more likely to see a Doctor on a revenue defaulter list, than a landlord.

OP if you feel the market is too high. Start looking elsewhere. But there is a serious shortage of housing in Dublin, so your chances of finding somewhere is slim.

I'm not assuming anything, he should simply cover his bases. it's a lot more common than most people think, is all. If it was so simple for OP I doubt he'd come here for all the obvious advice, seems to me he's looking for a way to stay, not leave.

yeah, you're likely to see a Doctor on defaulter list because he invested in 3 buy to let properties, not because he's a doctor

Ray Palmer

jmayo wrote: »

Exactly what I think every time I hear of mortgage restructuring or possible writeoffs for defaulting landlords and tax incentives for landlords. :rolleyes:

Well the best way not to have to default or need assistance will be to maximise the income at every opportunity. You know like put up the rent.

You can't have it both ways.

There are plenty of us who haven't defaulted nor have any financial issues.

Agent J

Hey OP.

This is what you want. The PRTB rental index. It's comprised from their own data so it is market prices (Remember Daft is ASKING prices).

http://www.cso.ie/px/pxeirestat/Statire/SelectVarVal/Define.asp?maintable=RIQ02&ProductID=DB_RI&PLanguage=0

I'd offer 1200 and tell them they can take it to the PRTB if they don't like it.


Based on the information provided (2Bed in Dublin 14)


PRTB Average Monthly Rent Report (Euro) by Location, Property Type,
Number of Bedrooms and Quarter

Dublin 14
Apartment
Two bed
2012Q3 1,137.72
2012Q4 1,148.70
2013Q1 1,151.07
2013Q2 1,160.35
2013Q3 1,175.68
2013Q4 1,190.30

Note: Location selection is based on population and dataset size.
A nil return (0.00) indicates insufficient data for that location.

hfallada

Agent J wrote: »

Hey OP.

This is what you want. The PRTB rental index. It's comprised from their own data so it is market prices (Remember Daft is ASKING prices).

http://www.cso.ie/px/pxeirestat/Statire/SelectVarVal/Define.asp?maintable=RIQ02&ProductID=DB_RI&PLanguage=0

I'd offer 1200 and tell them they can take it to the PRTB if they don't like it.


Based on the information provided (2Bed in Dublin 14)


PRTB Average Monthly Rent Report (Euro) by Location, Property Type,
Number of Bedrooms and Quarter

Dublin 14
Apartment
Two bed
2012Q3 1,137.72
2012Q4 1,148.70
2013Q1 1,151.07
2013Q2 1,160.35
2013Q3 1,175.68
2013Q4 1,190.30

Note: Location selection is based on population and dataset size.
A nil return (0.00) indicates insufficient data for that location.

I wouldnt call that index a fair representation of market rate. It doesnt take into account the quality of the accommodation, its age and the part of the post code its in.

The market rate is what most people are willing to pay. I can imagine the LL, giving OP a notice to quit over not getting a sufficient rent increase. If OP thinks the increase is too high, he can move. Although he will struggle to find somewhere else

awec

Agent J wrote: »

Hey OP.

This is what you want. The PRTB rental index. It's comprised from their own data so it is market prices (Remember Daft is ASKING prices).

http://www.cso.ie/px/pxeirestat/Statire/SelectVarVal/Define.asp?maintable=RIQ02&ProductID=DB_RI&PLanguage=0

I'd offer 1200 and tell them they can take it to the PRTB if they don't like it.


Based on the information provided (2Bed in Dublin 14)


PRTB Average Monthly Rent Report (Euro) by Location, Property Type,
Number of Bedrooms and Quarter

Dublin 14
Apartment
Two bed
2012Q3 1,137.72
2012Q4 1,148.70
2013Q1 1,151.07
2013Q2 1,160.35
2013Q3 1,175.68
2013Q4 1,190.30

Note: Location selection is based on population and dataset size.
A nil return (0.00) indicates insufficient data for that location.

That's 2013 Q4 at the latest though?

We're 2014 Q2 now, no?

Idbatterim

I would find out market rent, find out what your alternatives are and negotiate... I am about 30-40% below market rent, also in 2 bed in rathfarnham, letting agent is great etc, but I am not going near them, carpet needs carpet cleaning in living room, I'm paying for it, dishwasher packed it in, I'm going to replace the part. Window in bedroom needs some attention. I will gladly stump up E300 (probably less), and keep my head down, than risk losing E300 a month, (conservatively) €3600 a year!!!

Op, have you ascertained what market rent is yet? You cant just say 2 bed apartments in rathfarnham go for X, it depends on number of factors, they range from what I have seen, from around E1100 to E1300...

jmayo

Ray Palmer wrote: »

Well the best way not to have to default or need assistance will be to maximise the income at every opportunity. You know like put up the rent.

You can't have it both ways.

There are plenty of us who haven't defaulted nor have any financial issues.

To me part of that is true and part of it is bullcr*p.
As you well know there are some landlords out there who were always stretched and I am not just talking about the ones who became landlords accidentaly when the cr*p hit the fan.
A hell of a lot were leveraging existing properties for further deposits and going interest only, and it was all hinging on increasing capital appeciation.
Some then bought either at ridiculous prices or totally in wrong areas.
They are now up the creek without a paddle.

For some of them to keep their heads above water, they would have to have astronomical rents.

Besides you can't have a market that is there to shore up bad business decisions.
It doesn't work and it backfires eventually.


And yes we know there are plenty of long established and savvy landlords who are not in danger and are doing quiet nicely.

Shure aren't you always telling us you are one.

Pdoghue

I eventually bit the bullet and negotiated a rise of ~23% which brings the rent up to 1350.

Making me think now strongly of buying a 2 bed apartment on the south side. Any thoughts on the market there?

murphaph

Just don't buy anything that you wouldn't be content to stay in for ever (markets can fall as well as rise) if you had to.

Idbatterim

this is the thing, if you are now paying market rent, yeah buying COULD make sense!

Idbatterim

Just don't buy anything that you wouldn't be content to stay in for ever (markets can fall as well as rise) if you had to.

I agree to an extent murpaph, but say you buy a 1 bed in Dublin 14 now, rathfarnham or dundrum, there is pretty much no conceivable way I could see how the rent, wouldnt meet the mortgage and management fee etc. As we have seen from this crisis, property and rents are just so resilient in Dublin... Its pretty much a one way street once you dont buy in some god forsaken location and dont buy at or near the peak of a bubble. Being overly cautious isnt a great trait either, it has cost a lot of people SERIOUS money, my mate who had over half a million in cash to buy outright, missed houses around Dundrum / Churchtown that he could have had for low three hundreds at the time, they would now achieve low fives and that was 18-24 months ago... I honestly couldnt fathom why he didnt buy then.

Agent J

awec wrote: »

That's 2013 Q4 at the latest though?

We're 2014 Q2 now, no?

Yeah that's the latest available. We're still in Q2 2014 so Q1 2014 would technically be the most relevant if it was available. It's why I suggested going to approx 1200 EUR because i'd bet Q1 2014 is somewhere very near that.

hfallada wrote: »

I wouldnt call that index a fair representation of market rate. It doesnt take into account the quality of the accommodation, its age and the part of the post code its in.

It's based off the data provided by the OP. Possibly they could fine tune the address a bit but ultimately it is what the PRTB has as market rent for a 2 bed apartment in Dublin 14.

hfallada wrote: »

The market rate is what most people are willing to pay. I can imagine the LL, giving OP a notice to quit over not getting a sufficient rent increase. If OP thinks the increase is too high, he can move. Although he will struggle to find somewhere else

And the OP can appeal that notice to quit to.. the PRTB who will go and look at their own data of what people are currently paying for that type of accommodation in that that area and decide accordingly.

The PRTB rent index is made up of the rents actually been paid for that area so it's hard to argue against that they say is market rent.

PRTB wrote:

The Private Residential Tenancies Board (PRTB) publishes the most accurate and authoritative rent report of its kind on the private accommodation sector in Ireland. Compiled by the ESRI, and based on the PRTB’s own register of tenancies, this index reveals the actual rents being paid for rented properties.

http://www.prtb.ie/landlords/rent-index

Greenmachine

Pdoghue wrote: »

I eventually bit the bullet and negotiated a rise of ~23% which brings the rent up to 1350.

Making me think now strongly of buying a 2 bed apartment on the south side. Any thoughts on the market there?

Still a huge increase. Are you really happy it is the market rate for an apartment of that quality in D14.

Idbatterim

for that price it could only be in one of two blocks in rathfarnham IMO, and unless its a penthouse one or something special E1350 is the absolute limit on what I would deem market rent.