Dublin - Significant reduction in rents coming?

Ozark707

Timing belt wrote: »

As of Q3 2020 they had a occupancy of 93% for the following 9 properties (so 145 units vacant)



The also had the following 3 properties in lease up at the time (456 units) and the following under development


Source:http://ir.kennedywilson.com/financial-information-and-sec-filings/quarterly-earnings-and-supplementals/2020

Thanks for this, very useful. It is interesting that their occupancy is 93%. I remember a few years back some REIT (no idea which one) was claiming 99% occupancy. Question is whether now they can maintain an occupancy level in the nineties. Without an additional increase in the number of state assisted payments I can’t see it (at the rents they are asking).

JimmyVik

Ozark707 wrote: »

No thanks ��

I dont think that would bother them as much as you think it would

Ozark707

JimmyVik wrote: »

I dont think that would bother them as much as you think it would

Seeing as IRES are advertising a 2 bed, 2 bath for 1520 I would probably go for this one if I was looking here

1520 - Apartment 23, Phoenix Park Way

(edit: This place is for move in next Wedesday, it will be interesting to see if they are still advertising it after that given how much cheaper it is compared to other places there)

There are 7 2-beds for 1900 or less in this development. Good to know if you are looking here.

Ozark707

The Docklands area rental market badly hit according to agents Owen Reilly's.

While the demand for short-term rentals fell, the report noted that the supply of long-term rental units more than doubled.
“This, combined with reduced demand due to lockdown measures and work from home initiatives, caused rents to fall steeply in the second and third quarters,” it said.
Owen Reilly’s average rental was €2,312 per month, 6.97 per cent lower than 2019.

...though on the positive side it expects a huge increase in the amount of workers here which will lead to a strong rebound

Strong outlook
Despite this, the report said the outlook for residential property in the docklands was still strong with the workforce expected to double in the next two years to at least 80,000.

https://www.irishtimes.com/business/economy/rental-market-in-dublin-s-docklands-nosedives-as-couples-shun-one-bed-apartments-1.4470045

Ozark707

Ozark707 wrote: »

Seeing as IRES are advertising a 2 bed, 2 bath for 1520 I would probably go for this one if I was looking here

1520 - Apartment 23, Phoenix Park Way

(edit: This place is for move in next Wedesday, it will be interesting to see if they are still advertising it after that given how much cheaper it is compared to other places there)

There are 7 2-beds for 1900 or less in this development. Good to know if you are looking here.

Looks like it was let, unsurprising given how low it was compared to the others. Someone looks like they got a bargain.

But now No 22 is up for 1635 from IRES.

https://www.daft.ie/for-rent/apartment-apartment-22-rosanule-phoenix-park-avenue-castleknock-dublin-15/2884705

redarmyblues

Not Dublin but only 5 properties to rent in Sligo town on Daft, 6 advertised but one is a share, about 20% of normal supply.

cojomo2

Are people able to view rental properties at the moment with the level 5 restrictions?

redarmyblues

Viewings are only meant to happen when the parties are close to contracts, but how this tested or enforced is another thing. A friend of mine moved recently and her old place was let without advertising, even though it was in her words "a kip" but she said "people are desperate".

bucketybuck

cojomo2 wrote: »

Are people able to view rental properties at the moment with the level 5 restrictions?

I've viewed a couple of places, the routine has been masks and gloves, only one person allowed in, the usual things.

I don't know if they are technically allowed in level 5, but since I don't want to be homeless I don't particularly care.

One things I've noticed is some of the letting agents not responding to enquiries at all, despite the lets sitting there for weeks/months. Maybe thats just what they are like or perhaps they are all laid off, but it doesn't help much.

PommieBast

bucketybuck wrote: »

One things I've noticed is some of the letting agents not responding to enquiries at all, despite the lets sitting there for weeks/months. Maybe thats just what they are like or perhaps they are all laid off, but it doesn't help much.

One thing I can say is that behaviour is not new to the pandemic.

Claw Hammer

redarmyblues wrote: »

Viewings are only meant to happen when the parties are close to contracts, but how this tested or enforced is another thing. A friend of mine moved recently and her old place was let without advertising, even though it was in her words "a kip" but she said "people are desperate".

People can't be as desperate as they were. Rents in Dublin are falling!

Yellow_Blue

Browney7 wrote: »

https://www.daft.ie/for-rent/apartment-2-bedroom-phoenix-park-racecourse-castleknock-dublin-15/2883334

This is an interesting market development. IRES recently purchased c. 100 in the wider development. They are advertising these 2 beds for 1760, fully furnished for a brand new 2 bed apartment which haven't been rented before.

Older 2 bed apartments have typically been commanding around 1800 mark here in the wider develooment so begs the question - why rent an older more expensive one if there's a new build for cheaper. Size etc may differ but interesting to see the prices they have advertised these at

Messaged IRES last week asking if they have more photos for one of the apartments. Got response requesting double deposit and million proofs. Looks like they are not interested in tenants after all

Dav010

Yellow_Blue wrote: »

Messaged IRES last week asking if they have more photos for one of the apartments. Got response requesting double deposit and million proofs. Looks like they are not interested in tenants after all

They are being careful about who they let to and looking for a higher security deposit. Better to be choosey than let anyone in.

Yellow_Blue

Dav010 wrote: »

They are being careful about who they let to and looking for a higher security deposit. Better to be choosey than let anyone in.

Exactly, so we made a choice not to deal with them

Dav010

Yellow_Blue wrote: »

Exactly, so we made a choice not to deal with them

Both parties may feel they dodged a bullet.

bucketybuck

Dav010 wrote: »

Both parties may feel they dodged a bullet.

Thats very simplistic.

I did the same recently, I made a simple inquiry and instead of an answer I got a response asking for a laundry list of details more akin to a mortgage application. I wouldn't mind if we were at the signing stage, but before I have seen anything more than a few photos on a website?

I would be a good tenant by any metric you can think off, especially in financial terms, I am confident of that. But why exactly am I giving copies of my payslip before I can find out what floor the apartment is on?

Yellow_Blue

Dav010 wrote: »

Both parties may feel they dodged a bullet.

TBH I don't care what other party feel)) Surprised with this approach , and have to remember the logo so that i would not contact them again , this is pretty much it.

Dav010

bucketybuck wrote: »

Thats very simplistic.

I did the same recently, I made a simple inquiry and instead of an answer I got a response asking for a laundry list of details more akin to a mortgage application. I wouldn't mind if we were at the signing stage, but before I have seen anything more than a few photos on a website?

I would be a good tenant by any metric you can think off, especially in financial terms, I am confident of that. But why exactly am I giving copies of my payslip before I can find out what floor the apartment is on?

All tenants start out as “good tenants”, few LLs rent to ones that they recognise as being bad at application stage. The reality is that letting you know what is required from the outset saves both parties a lot of time.

bucketybuck

Dav010 wrote: »

All tenants start out as “good tenants”, few LLs rent to ones that they recognise as being bad at application stage. The reality is that letting you know what is required from the outset saves both parties a lot of time.

Its the "Both sides" part that rankles.

If they don't have the professionalism to even answer a simple query before making their demands then I would prefer to know that, yes. I just don't see how it reflects on me as a tenant.

Yellow_Blue

Dav010 wrote: »

All tenants start out as “good tenants”, few LLs rent to ones that they recognise as being bad at application stage. The reality is that letting you know what is required from the outset saves both parties a lot of time.

Typically they let to the 'best available tenant' , rather than abstract 'good' one. E.g you might be rolled out from cheaper apartment due to high competition and your income being lower than other applicants. At the same time time you can get more expensive rent simply because there is less competition.

During last recession no-one ever asked us proof of anything, while during 2nd boom they did ask for proves but never for double deposits.

Dav010

bucketybuck wrote: »

Its the "Both sides" part that rankles.

If they don't have the professionalism to even answer a simple query before making their demands then I would prefer to know that, yes. I just don't see how it reflects on me as a tenant.

At the moment many LL would prefer to have no tenant than a bad one. Failure to forward the requested info doesn’t mean you are a bad tenant, it just means they won’t consider you. It might be a crap policy, but I suppose they prefer to work that way.

Dav010

Yellow_Blue wrote: »

Typically they let to the 'best available tenant' , rather than abstract 'good' one. E.g you might be rolled out from cheaper apartment due to high competition and your income being lower than other applicants. At the same time time you can get more expensive rent simply because there is less competition.

During last recession no-one ever asked us proof of anything, while during 2nd boom they did ask for proves but never for double deposits.

New tenant legislation and ban on evictions means that more security is wanted by some LLs. It is hard to blame them.

PommieBast

Dav010 wrote: »

New tenant legislation and ban on evictions means that more security is wanted by some LLs. It is hard to blame them.

Apparently the UK government is about to lift the ban on evictions for people who are more than six months in arrears. Interesting to see how things pan out there.

Yellow_Blue

Dav010 wrote: »

New tenant legislation and ban on evictions means that more security is wanted by some LLs. It is hard to blame them.

Just googled them and it looks like they have proven track- record of asking double-deposit so eviction ban is not an excuse. They just want to perform some sort of short term investment with your 2 deposits, nice try, what can i say.

Yellow_Blue

Dav010 wrote: »

At the moment many LL would prefer to have no tenant than a bad one. Failure to forward the requested info doesn’t mean you are a bad tenant, it just means they won’t consider you. It might be a crap policy, but I suppose they prefer to work that way.

Which is exactly my original point

Dav010

Yellow_Blue wrote: »

Just googled them and it looks like they have proven track- record of asking double-deposit so eviction ban is not an excuse. They just want to perform some sort of short term investment with your 2 deposits, nice try, what can i say.

What sort of investment? I think it is more likely that they see the two month deposit as a means of mitigating at least some of the risk of a tenant falling into rent arrears.

JimmyVik

bucketybuck wrote: »

Thats very simplistic.

I did the same recently, I made a simple inquiry and instead of an answer I got a response asking for a laundry list of details more akin to a mortgage application. I wouldn't mind if we were at the signing stage, but before I have seen anything more than a few photos on a website?

I would be a good tenant by any metric you can think off, especially in financial terms, I am confident of that. But why exactly am I giving copies of my payslip before I can find out what floor the apartment is on?

They probably have you flagged as awkward to deal with

JimmyVik

Yellow_Blue wrote: »

Just googled them and it looks like they have proven track- record of asking double-deposit so eviction ban is not an excuse. They just want to perform some sort of short term investment with your 2 deposits, nice try, what can i say.

I think once the REITs are the dominant force, which isnt far away now, that it will go to 3 months up front like in every other country.
1st and last months rent plus one months deposit before you even get a look at the place.

Yellow_Blue

JimmyVik wrote: »

deposit before you even get a look at the place.

Can you share a link to this legislation?

The_Conductor

Yellow_Blue wrote: »

Can you share a link to this legislation?

What legislation?
JimmyVik offered an opinion.
Just because you disagree with him- does not mean that his opinion is any less worthwhile than your opinion- nor does it mean that his hypothesis, or yours, will come to pass.

There is an element of people wishing to have their cake and eat it here.