Dublin - Significant reduction in rents coming?

MadYaker

That was dumb. He should have come up with some other reason, say it’s taken or something then block her number and don’t respond any further.

Yellow_Fern

never get a reason for rejecting an applicant

the_syco

Greenlights16 wrote: »

In his ad on daft he politely responded at the start of the weekend to a lady saying “sorry hap is unsuitable for this property, hap not accepted”.
The lady responded telling him this is illegal and will be getting onto “the threshold” first thing Monday.

Best thing your mate can do is to ask Threshold on Monday is it illegal to say that he's not allowing HAP (it is illegal to state this), and then contact her to have a viewing, saying that he contacted Threshold. And then never get back to her after the viewing.

Tell your mate that in future, never respond to someone on why they didn't get the place.

=-=

IMO, it's bullsh|t. Instead of a flat out "no" to letting to people on HAP, people on HAP must now waste their time looking at properties that the LL has no intention of letting to them.

Yyhhuuu

the_syco wrote: »

Best thing your mate can do is to ask Threshold on Monday is it illegal to say that he's not allowing HAP (it is illegal to state this), and then contact her to have a viewing, saying that he contacted Threshold. And then never get back to her after the viewing.

Tell your mate that in future, never respond to someone on why they didn't get the place.

=-=

IMO, it's bullsh|t. Instead of a flat out "no" to letting to people on HAP, people on HAP must now waste their time looking at properties that the LL has no intention of letting to them.

It is against the law to say you are not accepting H.A.P. Obviously you can set a higher rent within the RPZ legislation to which a HAP tenant could not afford.

Threshold don't advise Landlord's they advise tenants

Baby01032012

the_syco wrote: »

Best thing your mate can do is to ask Threshold on Monday is it illegal to say that he's not allowing HAP (it is illegal to state this), and then contact her to have a viewing, saying that he contacted Threshold. And then never get back to her after the viewing.

Tell your mate that in future, never respond to someone on why they didn't get the place.

=-=

IMO, it's bullsh|t. Instead of a flat out "no" to letting to people on HAP, people on HAP must now waste their time looking at properties that the LL has no intention of letting to them.

Why post this? Threshold does not talk to landlords and of course saying hap not accepted is illegal why would you even need to go to threshold to ask this.

HansKroenke

To be honest, I would get a solicitor who takes care of landlord business if I was that landlord and try to get himself into a protective position ASAP. That was foolish to put something in writing that says that, but he should look to try to mitigate the fallout as best he can.

The_Conductor

Ok guys- I think Greenlights16 has got the message, lets move on.

Ozark707

Prime Time piece on why rents have not collapsed. Citing many of the points made earlier on this thread.

https://www.rte.ie/news/primetime/2021/0304/1201026-covid-19-pandemic-rental-market-landlords/

HansKroenke

Ozark707 wrote: »

Prime Time piece on why rents have not collapsed. Citing many of the points made earlier on this thread.

https://www.rte.ie/news/primetime/2021/0304/1201026-covid-19-pandemic-rental-market-landlords/

Greystar, which owns the building, told Prime Time that the measure was temporary.

Because the scheme was still under development, it said that the rent-free period was being offered for units that may be affected by "ongoing construction activity".

"Given the Government-imposed lockdown, there have been delays on site and we want to be fair to the new residents affected," it said.

Yes, that must be it.

Reading that article, I had completely forgotten about Airbnb. That business model looks dead in the water, especially with the large numbers of hotel rooms which are available that will be competed with once staycation are allowed this summer. Foreign travellers when they return next year will also have hotels trying to woo them with deals. That aspect of the Airbnb business model, the cost, is done. The flexibility offered by an Airbnb apartment might still have a market but I don't see much of a recovery for a while there. The job losses in the Dublin office last summer was announced to be around 30% of the 500 staff I think but I would be surprised if they've many left come the end of this year.

AlmightyCushion

HansKroenke wrote: »

Yes, that must be it.

Reading that article, I had completely forgotten about Airbnb. That business model looks dead in the water, especially with the large numbers of hotel rooms which are available that will be competed with once staycation are allowed this summer. Foreign travellers when they return next year will also have hotels trying to woo them with deals. That aspect of the Airbnb business model, the cost, is done. The flexibility offered by an Airbnb apartment might still have a market but I don't see much of a recovery for a while there. The job losses in the Dublin office last summer was announced to be around 30% of the 500 staff I think but I would be surprised if they've many left come the end of this year.

Yeah, everyone and their dog knows if they had no issues renting them without the 2 months free rent, they wouldn't be offering it.

beauf

The pattern of large property owners especially Reits leaving property empty is well known around the world.

Was there a TV programme associated with this report.

JimmyVik

Ozark707 wrote: »

Prime Time piece on why rents have not collapsed. Citing many of the points made earlier on this thread.

https://www.rte.ie/news/primetime/2021/0304/1201026-covid-19-pandemic-rental-market-landlords/

In this day and age, if I owned a rental i wouldnt be giving lower rent if the tenant asked.
Id be saying no, in the hope they would just move out so I could sell the place and get rid.

The Irish rental market is no place for anyone but REITS now.
My employer is in negotiations with a reit to rent 20 apartments off them from January.
They plan to use them as a perk for attracting overseas workers.
They have all ready rented as many apartments in Dublin from their own staff as they could get.

Dav010

One of the surprising lines is that fewer than expected Airbnb units have been released for long term rental. Even with no lettings, STR owners would still prefer not to be Landlords.

Ozark707

Dav010 wrote: »

One of the surprising lines is that fewer than expected Airbnb units have been released for long term rental. Even with no lettings, STR owners would still prefer not to be Landlords.

Yes that appears to be the case. The overall count of available units on Daft has now been remarkably stable for a good few months it appears. As we start to open up closer to the summer (hopefully at least!) it will be interesting to see what happens. I can't see supply remaining at current levels if nothing is done to help small LL's (and I don't expect there to be any unfortunately).

JimmyVik

Ozark707 wrote: »

Yes that appears to be the case. The overall count of available units on Daft has now been remarkably stable for a good few months it appears. As we start to open up closer to the summer (hopefully at least!) it will be interesting to see what happens. I can't see supply remaining at current levels if nothing is done to help small LL's (and I don't expect there to be any unfortunately).

Its going to be carnage coming up to October if the virus is defeated.

Claw Hammer

The Dublin rental market is extremely slow at the moment. The rent cap is causing landlords to hold prices rather than find themselves locked in well below market levels when the tide turns. The rent cap is now doing the exact opposite of what was intended. Smaller landlords are taking the opportunity to sell up if units become vacant. Some tenants are now taking the opportunity to move now if they can negotiate a keen rent. They will be in part 4 by the Autumn and will have locked in a low rent which will keep them going for years.

beauf

JimmyVik wrote: »

Its going to be carnage coming up to October if the virus is defeated.

Be interesting the effect of WFH will have on it.

JimmyVik

beauf wrote: »

Be interesting the effect of WFH will have on it.

Negligible would be my guess.

JimmyVik

JimmyVik wrote: »

...........
They plan to use them as a perk for attracting overseas workers..............

So folk get a €2k/month apartment as part of their package?
Presumably BIK is due on that?

JimmyVik wrote: »

Its going to be carnage coming up to October if the virus is defeated.

What do you mean?

beauf

JimmyVik wrote: »

Negligible would be my guess.

All these things are cumulative though.

Dav010

beauf wrote: »

All these things are cumulative though.

Would the wfh effects not be at their worst now? Any return to offices later in the year would drive demand.

Dav010

Augeo wrote: »

What do you mean?

Tens of thousands of students all looking for accommodation at the same time. Normally a considerable number have their accommodation already from the previous academic year, not this year, so there will be an unprecedented number looking for accommodation if classes resume in October.

JimmyVik

Dav010 wrote: »

Tens of thousands of students all looking for accommodation at the same time. Normally a considerable number have their accommodation already from the previous academic year, not this year, so there will be an unprecedented number looking for accommodation if classes resume in October.

Thats it exactly.
There is a huge shock to supply on the cards.
Also people called back to work from abroad or down the country.
If I owned an investment property I wouldnt be trying to rent it until at least September. And thats only if the virus situation is over by then.
If its not, i would wait until it is.

HansKroenke

Dav010 wrote: »

Tens of thousands of students all looking for accommodation at the same time. Normally a considerable number have their accommodation already from the previous academic year, not this year, so there will be an unprecedented number looking for accommodation if classes resume in October.

It's hard to know what will happen. If it is not possible to get the part-time job for a bit of beer money, might students just commute for their college work and keep what money they have to have a social life around their home town? How will travel look in August with the messaging from the government that any sort of stricter measures on travel will not come in for another few weeks (which means they won't be abandoned quickly, unfortunately)? There is also a lot of newly built student accommodation which has come on stream since the last pre-covid academic year began to help with the student accommodation crisis. If there was a risk of another winter surge and re-introduced restrictions, would students not take the risk of a 6-9 month rental contract with deposit?

There really is a lot riding on the government to roll out a proper plan to get back to normal as people and businesses need certainty, for the sake of the economy. This kicking the can down the road and a "hope to see" policy with regard to covid restrictions is not going to be good enough come May/June when people are starting to look into their college plans for the new academic year. For example, if I was due to be going back to college in September, I'd want to know quite early if it is likely that restrictions will be eased so that I can get a part-time job in a pub, like I did before, to pay for my living expenses while renting. I'd want to know if it is worth taking on a rental contract with a couple friends for a place when there was a risk of things getting shut down again.

Dav010

That only applies to those who can/want to commute. The surge which will occur if lectures do resume will be unlike anything seen before, those new purpose built accommodations amongst the most expensive for students.

Dav010

Dav010 wrote: »

Tens of thousands of students all looking for accommodation at the same time. Normally a considerable number have their accommodation already from the previous academic year, not this year, so there will be an unprecedented number looking for accommodation if classes resume in October.

If their accommodation isn't sorted from previous years there's more empty/available units also surely?

Dav010

Augeo wrote: »

If their accommodation isn't sorted from previous years there's more empty/available units also surely?

Depends on whether LLs took the opportunity to sell. What makes this situation different is that the stock of rentals will not have changed significantly, even the number of students will be a relative constant, it’s that normally a proportion of students renting would be looking to rent for the first time, or change rentals, but in Sept/Oct virtually all students will be looking for new accommodation because few will have kept their rentals during this academic year.

I reckon some will be sorting the accommodation out in advance tbh.
Don't really see how it'll be carnage. Especially with the AirB&B/tourist situation.

beauf

Dav010 wrote: »

Would the wfh effects not be at their worst now? Any return to offices later in the year would drive demand.

Yes. But the current situation is "temporary" we won't know the permanent effect of WFH until everything starts back up again. I agree it will be less than people hoped. But I'm curious what will happen.

beauf

Augeo wrote: »

I reckon some will be sorting the accommodation out in advance tbh.
Don't really see how it'll be carnage. Especially with the AirB&B/tourist situation.

Depends on whats available. I know some places (like hotels) won't open if the volume is too low low to be viable.