Why do Landlords feel entitled to rent increases?

The poster actually stumbled upon a salient point, are landlords entrepreneurs? They're definitely in business, but we tend to associate entrepreneurs with financial risk taking and innovation. I'd argue that a great number of citizen landlords, myself included, would be quiet financially risk adverse. So fair enough, entrepreneurial failures, but I'm not sure people either set out to be successful at that or that being a small time landlord is conductive to same.

Let me break it down for you. The yield on my property is 4.2% with the tax man taking roughly half. In the same time period the asset appreciate by 5% and I'd only pay a third of that in CGT. Positive income stream and capital appreciation factor into the business model. When Sinn Fein or the like propose that landlords never be able to sell at market rate a property, they effective zero out the Capital gain. If I have to choose between no rental income or no capital gains, well the smart move is to bank the 5% and move on. The single best time to make such a move is before the law changes. For me this has to be the reason so many landlords are selling up, it's not emotional, it's not due to bad tenants, it's due to hard cold financials.

I never said that. LL leaving the market is the problem. small LL's

If you think it’s a money making machine, then clearly you’re not that familiar with it.

I bought my apartment as a home. Thanks to the financial crisis I could not afford to sell it when I needed to move for work. I suppose I could have stayed put, stopped paying my mortgage and lived off social welfare. Instead I let it out and rented elsewhere myself. Usually the rent has covered costs but I haven’t made much profit from rental income. Now that house prices are up, I’ll sell as soon as my tenants leave but I don’t want to kick them out. Please, tell me again how lacking in morals and principles I am??!!

Why don''t you have job for the last 3 years? You do understand landlords pay a lot in taxes that helps pay for people unable or not working? If somebody is earning more than you what is your problem with that?Not sure why you are so angry. Ignorance of how economics of the rental market is one thing but what is the anger about?

Ah so it's not so much you have superior morals but rather you lack the means.

I recognize his style. Hes back :)

He has been in the property threads for a while now predicting a crash. Keeps moving the date. You know him well :)

If you are going to invest in any traded stock, you cant measure success in a 2 month timeframe. See what the 3-5 year capital gain/loss is like.

A 17% reduction in the first 2 months of the year is also an indication of increased value for investors moving into REIT investments at the moment. Lets see if its still down 17% even 12 months from now.

Inflation is predicted to run at 4-6% over the next 2 years. Rent increases in RPZs will be capped at 2%. This constitutes rent decreases across the board in real (albeit not nominal) terms.

This combined with increases in the value of the underlying asset which will run well above 2% means an ongoing annual reduction in yield. Which means inevitably we reach a point where better yields are available for the capital value of the equity in the property elsewhere. At which point it makes sense to sell up rather than continue to rent, especially since those alternative yields can probably be achieved at significantly less risk and less effort/hassle.

So don't be surprised when the supply of rental accommodation continues to reduce.