exodus of small investors from the Irish rental sector has reduced the number of available tenancies

Any existing small LL will have bought their properties at past prices (possibly decades ago). The cost of owning the property wont have changed much but they will be benefitting from the current high rents. I'd say those selling up are mostly those who covered most/all of the cost of the property and are getting a massive windfall due to high selling prices. The existence of REITs hasn't really changed much for the small LL, certainly not in terms of their costs. Some even claim the REITs have increased rents. It may prevent them acquiring more properties but given the complaints here about tax, that is unlikely anyway.

Despite what some have said, there are obvious economy of scale benefits to owning and operating a large number of units, particularly apartments. Maintenance costs and replacements are built in to the overall project. Assets are depreciated and written off over time. They also get better prices on appliances as part of an overall FM system than someone buying a single item.

I know this won't be a popular here but those exodusing are doing so because it is beneficial to them, it's not something to be lamented. They are not being driven out, rather opportunistically leaving at a good time (as is their right and likely a good business decision). If the small LL was so worried about tenants then they could remain in the game. It seems more like small LLs are angling for a tax break and if not they sell up, either way they win.

There is another side to this story, it might not be many people but a few fall into this:

Accidental of reluctant landlords exiting because the value of the property has for the first time in a decade brought them out of negative equity, or back to the original high price that was initially paid and they can cut their losses and not have to pay over half the rent in tax.

if they are lucky come out with a few quid to clear a loan or make a payment off their primary home. Any profits are subject to CGT so the gov get their pound of flesh as well.

Not every landlord is wealthy, many are just ordinary people working ordinary jobs trying to live.

Of course some costs have risen over time, that is pretty standard in every business. People may be getting out because they are sick of it but also because the current prices which can be achieved by selling make it more attractive. The properties are either bought by occupiers or those who will let them out again so there isn't a negative impact on the overall property market (properties removed from rental are put up for sale which is also under supplied).

The cost of buying, as well as the lack of financing for buy to let properties means there are very few new small LLs. I don't really see the negative in the shift from small LL to large funds. The funds are actually building units which increases the supply. Small LL would be competing with occupiers and I see no longer having that as a positive. Yes there are issues around funds and the tax they pay but these really need to be addressed after they have built enough units, not before which would act as a disincentive to develop.

Maybe they could seek an end to the difference in taxation between normal landlords and REITs.

It may have been the case historically (although I'dalso query that) but I seriously doubt rented units are used less efficiently than owner occupiedunits now.

I know plenty of individuals and childless couples who own two/three bedroom units. There's also lots of empty nesters out there with permanently empty bedrooms. I also know plenty of pairs/groups of individuals renting properties and every bedroom is occupied, it has to be to cover the rent. Very few families can afford to rent a property with an additional occasionally used bedroom.

How could anybody still be in negative equity in 2021?

Surely ten years of mortgage repayments would have lifted them out of negative equity?

The only reason I can see for remaining negative equity is somebody who has an interest-only mortgage.

Negative equity doesn't mean worth less than paid it means owe more than worth.

From link peak is 165 points currently at 150, so just over 90% of peak value, 12 yrs of mortgage payments would have easily paid of that much unless they were interest only the majority of that time.

927 rental properties in daft today. I put in Dublin as the search.

1200+ only a month ago.

Exactly. Noone I know who was a landlord and has got out in the last couple of years got out because they wanted to. They would rather have continued, but the risk profile of the investment plus the ever changing legislation have made it impossible for them to justify staying.

Any bets on when the legislation for no rent increases and indefinite tenancies comes in?

My bet is Christmas week.