Renting in RPZ - landlord has decided to refurb so he can increase rent

Zulu

So just to share my experience and anger...
We've been renting for 6 years. Were actually planning on buying towards the end of the year. Rent was reasonable as the property was bottom end. The landlord notified us of a rent increase a few months ago in line with the 4%, but in the meantime has done the maths and figured out that a refurb and tenant change would be worth it, so has notified us of this.

I now have to find a place for a family of 4 with a dog in September. While my daughter starts school in September. While I try to get mortgage approval in December to buy sometime in the new year.

So yeah, thank you for meddling. Your ill conceived populist 4% has put my family on the street. It's going to be awesome craic trying to rent a place in the area with 2 kids and a dog. And IF I manage to get a place, I'll be annoying the landlord by exiting the lease early.

So realistically, my only option is to serve notice on my tenants who've done nothing to me only being great tenants. I hate to do it, but what choice do I have. I evict them, and I save myself in the region of €1800 per month. We squeeze into the two bed for a handful of months. And then re rent.

So fair play again to the government. Great job.
.

Gloomtastic!

^ The reason why socialists, or any flavour thereof, should never be let near government ever!

expectationlost

Gloomtastic! wrote: »

^ The reason why socialists, or any flavour thereof, should never be let near government ever!

Fine Gael are a flavour of socialist now?

sentient_6

You are also a landlord yourself? Your rant is confusing.

Are you serious raving about the government putting you on the street while you actually own property you are renting to someone else?

estee11

his post is 100% clear.

Browney7

And government action and inaction in equal measure has realistically helped to increase the value of the apartment you own albeit probably still in negative equity...

Zulu

sentient_6 wrote: »

You are also a landlord yourself? Your rant is confusing.

"Accidental" landlord.

Are you serious raving about the government putting you on the street while you actually own property you are renting to someone else?

Yes I am. I'm going to have to boot out my tenants. They are also going to be -vely impacted. And good luck to them renting a 2 bed city centre apartment.
This is because the Government meddled. Hed they not, I wouldn't be leaving my property, and I wouldn't be evicting my tenants.

Can you seriously not see the impact and problems this all causes?

Tell me how

estee11 wrote: »

his post is 100% clear.

It's anything but.

Gloomtastic!

expectationlost wrote: »

Fine Gael are a flavour of socialist now?

The measure was introduced by Alan Kelly/Labour in the last government and continued as populist nonsense by the current clowns......

Claw Hammer

It seems it is the o/p's tenants who are really being shafted, not the o/p. I wonder why they are not having a rant.

mickoneill31

I don't know if it's incompetence or maliciousness on the government's part. When Alan Kelly introduced his rent caps a couple of years ago anybody could see that rents would fly up. Then the first time buyers assistance this year sounds like a great idea. Except we've no supply so anybody could see what that would do for property in Ireland.

Claw Hammer

The whole thing is being driven by the need to be seen to "do something". The numerous easy things which could be done are not being done. It is just headline grabbing antics which are happening.

Graham

Claw Hammer wrote: »

It seems it is the o/p's tenants who are really being shafted, not the o/p. I wonder why they are not having a rant.

It is probably reasonable to suggest nobody is doing well in this scenario.

CIARAN_BOYLE

Zulu wrote: »

So just to share my experience and anger...
We've been renting for 6 years. Were actually planning on buying towards the end of the year. Rent was reasonable as the property was bottom end. The landlord notified us of a rent increase a few months ago in line with the 4%, but in the meantime has done the maths and figured out that a refurb and tenant change would be worth it, so has notified us of this.

Why not offer to say screw the 4%, pay a little extra and keep your current tenancy till the end of the year. Remember of course that had the 4% not come in you would probably have gotten a bigger price rise at the last rent review.

KindOfIrish

Zulu wrote: »

So just to share my experience and anger...
We've been renting for 6 years. Were actually planning on buying towards the end of the year. Rent was reasonable as the property was bottom end. The landlord notified us of a rent increase a few months ago in line with the 4%, but in the meantime has done the maths and figured out that a refurb and tenant change would be worth it, so has notified us of this.

I now have to find a place for a family of 4 with a dog in September. While my daughter starts school in September. While I try to get mortgage approval in December to buy sometime in the new year.

So yeah, thank you you fucking cretins for meddling. Your ill conceived populist 4% bullshit has put my family on the street. It's going to be awesome fucking craic trying to rent a place in the area with 2 kids and a dog. And IF I manage to get a place, I'll be pissing off the landlord by exiting the lease early.

So realistically, my only option is to serve notice on my tenants who've done nothing to me only being great tenants. I hate to do it, but what choice do I have. I evict them, and I save myself in the region of €1800 per month. We squeeze into the two bed for a handful of months. And then re rent.

So fair play again to the government. Great job.
Morons.

Just make an offer to your landlord to pay current market rent before you buy your own place. I don't think it's a crime to ignore the 4% cap.

Fol20

CIARAN_BOYLE wrote: »

Why not offer to say screw the 4%, pay a little extra and keep your current tenancy till the end of the year. Remember of course that had the 4% not come in you would probably have gotten a bigger price rise at the last rent review.

Maybe not. Personally I haven't really increased rent for a good few years for my tenants. But now with new rules, to protect myself. I will try and keep rents as close to market rent as possible

76544567

CIARAN_BOYLE wrote: »

Why not offer to say screw the 4%, pay a little extra and keep your current tenancy till the end of the year. Remember of course that had the 4% not come in you would probably have gotten a bigger price rise at the last rent review.

A LL cannot do this as then if the tenant ever falls out with him the RTB will punish him severely. You just can't take the risk.

Op i hear ya. I had several properties let at way below market rates and the new rules have seriously undermined me. I tried to find ways to stay in the business but it's easier to get out from under the RTB. So i have to say goodbye to 3 sets of tenants this year who i was happy to let at below market rates the last few years. But the future is so bleak for landlords i just had to get out.

seamus

Serious question;

If your landlord was willing to boot out perfectly good tenants and refurb the property to get more than 4%, do you think he wouldn't have done that if he had free reign to increase the rent? Do you think he's only looking for 5 or 8% increase? What would you have done if he asked for a 15% increase and you refused?

You're right in that the government has just been polishing a turd and the rental sector won't work for anyone until the supply issues in the private sector catch up. But I think you're definitely barking up the wrong tree if you think you'd be in a much better situation without the caps.

Realistically if you're going for mortgage approval this is all going in your favour in the long run because your rent isn't going up by an insane amount and eating into your ability to save.

dubrov

Landlord rents below market rate and decides to up to market rate.
I don't see how the new 4% rules have anything to do with it.
Without it, he could just up the rent and not have to do a refurb.

If you are on good terms with your landlord, explain your situation and I am sure you can come to some arrangement.

Graham

dubrov wrote: »

Without it, he could just up the rent and not have to do a refurb.

That may suit some tenants in specific circumstances like the OP.

nikkisclearout

Be thankful you have a "2 bed" to "squeeze into". Many people would be delighted to have that and you have another property purchase in the pipe line.

coffee_cake

I don't understand how it is worth it since a 4% cap applies to new tenants as well anyway? He can't just start from whatever he wants? I'm not up to date in the rules but I thought that was the case

Graham

bluewolf wrote: »

I don't understand how it is worth it since a 4% cap applies to new tenants as well anyway? He can't just start from whatever he wants? I'm not up to date in the rules but I thought that was the case

Not if the property has been substantially refurbished/upgraded.

.......

This post has been deleted.

Graham

nikkisclearout wrote: »

Be thankful you have a "2 bed" to "squeeze into". Many people would be delighted to have that and you have another property purchase in the pipe line.

What should the OPs tenants currently living in the 2 bed be thankful for?

pilly

bluewolf wrote: »

I don't understand how it is worth it since a 4% cap applies to new tenants as well anyway? He can't just start from whatever he wants? I'm not up to date in the rules but I thought that was the case

You can charge market rate after a substantial refurbishment.

coffee_cake

Thanks guys that clears it up

nikkisclearout

Graham wrote: »

What should the OPs tenants currently living in the 2 bed be thankful for?

Its pretty clear from my post that i am addressing the OP not his tenants

Bandana boy

Have a chat with your current landlord , and do a deal to extend till January .

Zulu

Claw Hammer wrote: »

It seems it is the o/p's tenants who are really being shafted, not the o/p. I wonder why they are not having a rant.

Well we're both being shafted. They are not having a rant because they dont know this yet.

CIARAN_BOYLE wrote: »

Why not offer to say screw the 4%, pay a little extra and keep your current tenancy till the end of the year.

We've suggested this. They are having a think about it, but have officially still served the notice. In all likelihood I don't see them going for it, as it would potentially put them in a precarious position with the RTB if we decided not to move out.

Remember of course that had the 4% not come in you would probably have gotten a bigger price rise at the last rent review.

True, which we could have negotiated, and managed, and not be forced to move out.

seamus wrote: »

Serious question;

If your landlord was willing to boot out perfectly good tenants and refurb the property to get more than 4%, do you think he wouldn't have done that if he had free reign to increase the rent?

If you are asking me? He wouldn't have booted us out. We've had rent increases over the past years. And we've managed to always meet an arrangement.

Do you think he's only looking for 5 or 8% increase? What would you have done if he asked for a 15% increase and you refused?

They would have been looking to get the rent up 30% - 50% I reckon. We would have negotiated. And we probably would have gotten a 35/40% increase. We would have taken this and managed it.

But I think you're definitely barking up the wrong tree if you think you'd be in a much better situation without the caps.

Well, I'd have the opportunity to claw back a margin of this against the rental income I get (albeit not that much considering tax due)

Realistically if you're going for mortgage approval this is all going in your favour in the long run because your rent isn't going up by an insane amount and eating into your ability to save.

I assure you this isn't in my favour. The last thing I want to be doing now is either evicting good tenant or moving from an unfurnished 3 bed to a furnished 2 bed!

And the banks have advised that they consider rent paid in the ability to repay, but either way we could have covered it for a year.

Grumpypants

I've said it time and time again, all they need to do to fix the rental market is make the tax rate on rental income under 10K 0% (similar to the 14K limit for Rent a room). If you earn 10,001 you pay the 60ish% on it all.

Overnight rents would drop to €833 a month across the board.
Most renters would get a discount from what they currently pay, so they would be happy and have more to spend/save.
Most landlords would take home more money, so they would be happy.
It would increase the amount of houses on the market as the accidental landlords who have left the market because they can't break even would flood back.

But no we get dumb 4% caps that screw everyone.