Long Term RAS .10 year's plus

kyleman

As rents have being increasing I see most landlords have pulled their properties from this scheme. Can anyone tell me what if any penalty the councils impose for removing your house from RAS

newacc2015

kyleman wrote: »

As rents have being increasing I see most landlords have pulled their properties from this scheme. Can anyone tell me what if any penalty the councils impose for removing your house from RAS

Very few signed up to it in the first place. I knew several LLs with hundreds of property collectively and none would touch this scheme with a barge pole. The councils literally pull a "market rate" from thin air and then decide they will only pay a fraction of this already under the market rate. Meaning a LL ends up getting a fraction of the rent they could get on the open market with no potential to increase the rents inline with the rise in the economy

Gatling

newacc2015 wrote: »

Very few signed up to it in the first place. I knew several LLs with hundreds of property collectively and none would touch this scheme with a barge pole. The councils literally pull a "market rate" from thin air and then decide they will only pay a fraction of this already under the market rate. Meaning a LL ends up getting a fraction of the rent they could get on the open market with no potential to increase the rents inline with the rise in the economy

It's actually paid at 80+ % of market rents which many are actually inflated they are Hardy loosing our,
I believe alot of places wouldn't be fit for the scheme too .

kyleman

Just read an article where almost 400 landlords in Dublin withdrew their properties from this scheme. Most were getting less than half the going rate and certainly nowhere near 80%

newacc2015

Gatling wrote: »

It's actually paid at 80+ % of market rents which many are actually inflated they are Hardy loosing our,
I believe alot of places wouldn't be fit for the scheme too .

80% is a fraction of the market rate! A market rate which councils have literally pulled out of their arse. Call DCC and ask them what the market rate is for a 3 bedroom mid terrace in Drumcondra. You will be very surprised to find out what they call the "market rate". I will spoil the surprise you, it nothing like the real market rate. So when your local council is offering you a fraction of an already significantly below market rate, you are actually loosing out. If it was attractive as you think it is, why is no one signing up to it?

Who are these "many" who are saying rents are inflated? If rents are so "inflated" who isnt every American or European pension fund jumping at the opportunity to make massive profits at these "inflated" prices considering they are paying to take on Government debts ( ie a lot of bonds are now negative interest rate bonds ie you are paying to lend a Government money)? Because when you look at the cost of construction, land etc. Irish rents arent inflated, they are reflecting the cost of housing in Ireland.

What are you basing your "believe" on places not being fit for the scheme? The standard for rental properties in Ireland are so low, you would nearly need to try not to pass them.

kyleman

On the long term rental landlords were offered 80% of a very reduced rate by the Co.Co's which was reviewed after 2 years and most got a tiny rent rise. The next rent review is after 5 year and by that stage landlords at best will achieve 50% of the going rental rate.
No wonder most landlords renaged on their end of the deal.

Marty1983

kyleman wrote: »

As rents have being increasing I see most landlords have pulled their properties from this scheme. Can anyone tell me what if any penalty the councils impose for removing your house from RAS

It depends on your contract, if it's tenancy specific you are fine, if it's fixed maybe get legal advice.