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Does your rent go up every year?

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  • Registered Users Posts: 264 ✭✭jo187


    Well no because this is not audio. The sad part is you think your being funny/clever.



  • Registered Users Posts: 264 ✭✭jo187


    This is a sensible idea. I'm under the impression the big rental companies are not paying any tax of course that saving is not passed l.



  • Registered Users Posts: 14,513 ✭✭✭✭Dav010


    No, it isn’t.

    There is no hope that rental income will have zero taxation, and there would be no guarantee that LLs would pass the reduction on to their tenants.

    There is a vast difference between having no tax on rentals at all, and having no tax liability due to costs. Some posters will be better able to explain why institutional investors do not pay tax directly on rental income, if memory serves me right it has to do with offset costs and tax on dividends.



  • Registered Users Posts: 264 ✭✭jo187


    Yeah but they can claim tax back on there dividends, so essentially paying no tax.



  • Registered Users Posts: 2,560 ✭✭✭tscul32


    Problem with eliminating tax and passing on saving is that everyone pays tax dependent on their own personal situation.

    Take 2 identical houses both rented out at €1000. Owner A has no other income so pays minimal tax, say €100 per month. Owner B has a full time job so pays €500. New rents are now €900 and €500?



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  • Moderators, Science, Health & Environment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 60,096 Mod ✭✭✭✭Tar.Aldarion


    Yes, my LL puts it up by the max allowable every year.



  • Registered Users Posts: 28 mikecope


    Before rent controls the LL would mainly change the rent if there was a change of tenancy but now increases rent by the full amount every year for all tenants.



  • Registered Users Posts: 12,098 ✭✭✭✭Flinty997


    It used to very anti LL. I think the moderation has changed or perhaps the tools are broken since the upgrade.



  • Registered Users Posts: 12,098 ✭✭✭✭Flinty997


    A LL with multiple properties has reduced their exposure to losses by spreading such costs across multiple properties.

    If you don't need the money then it's not really a valid comparison. But keeping properties below market rates means they'll never sell for the same price as their peers and indeed it's likely they not sell into the rental market again.

    But for a LL who does need the money, then keeping the rent low increases their exposure to losses and reducing the value of their property as a rental.

    This is why larger landlords are increasing many of which who are large investment companies who's only focus is return for the shareholders. Companies generally don't operate on the principal of we don't need to make extra money.

    Landlords who would have traditionally had lower rents and have one property. Are penalized for it. So they are leaving. Their properties leave the rental market with them. New landlord with new rentals can set any rent they like. This is pushing tents higher across the market.

    "....86 per cent) own only one or two properties. Most of them own one..and half of all landlords earn less than €10,000 on these investments ...If their gross income is enough to see them taxed at the higher rate the net annual income from their investment is €5,150 or less. If they’re lower rate taxpayers then it could be as high as €7,150...."

    So landlords with multiple properties who don't need the money are not representative of the market.

    Just because someone puts up the rent they are not " greedy".



  • Registered Users Posts: 4,464 ✭✭✭FishOnABike


    The 2% cap is an annual limit,if the rent hasn't been increased in a number of years the 2% is compounded since the last rent review e.g. if the rent hadn' t been increased in five years it could be increased by 10.4% might be a bit more of a shock than 2% every year.

    https://www.rtb.ie/beginning-a-tenancy/setting-rent



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  • Registered Users Posts: 1,804 ✭✭✭ballyharpat


    I did not know that I could increase pro-rata, I don't like to increase every year, and I just increased with inflation 18 months ago, but had told them it would be 2 years again before I increase, I will see where we are in 12 months and if the tenants are working and financially ok, then I will apply a rent rise, otherwise, I will wait until they are in a good position, with HAP RAS etc, I increase at every opportunity, as it's my tax paying the rent anyway, is how I look at it.



  • Registered Users Posts: 1,604 ✭✭✭Amadan Dubh


    To be fair, if you were paying average rent 5 years ago it would've been around €1500/1600 in Dublin anyway, now it would be only €1650/1760 which wouldn't be outrageous even if introduced overnight.



  • Registered Users Posts: 1,374 ✭✭✭SortingYouOut


    Our landlord hasn't increased the rent in 4 years, Dublin City Centre RPZ. Not sure why, we're currently paying about 700-1000 below market. I don't dare ask either.

    Beverly Hills, California



  • Registered Users Posts: 5,974 ✭✭✭DoctorEdgeWild


    Been increased twice during my tenancy, which is nearly 7 years now I think. So an increase every 3.5 years on average. Really good tenant/landlord relationship with them.



  • Registered Users Posts: 8,239 ✭✭✭Pussyhands


    Yep.

    And they phrase it that it's due to government regulations. Lol.

    Your mortgage is fixed (or should be), why should you make more every year?



  • Registered Users Posts: 1,804 ✭✭✭ballyharpat


    Labour and materials are increasing every year, insurance is increasing every year, property tax has increased. Inflation is adding to everything, and will add to wages.

    If an employee comes looking for a raise, how should an employee feel if they are told, 'Why should you make more every year?'

    My roof may not need to be replaced this year, but it will, the price will be more than it was 5/10 years ago, I need more money to cover it. If I am only making the same as I was 5/10 years ago, I may not be able to repair it without borrowing. it's a business, the cost of running it needs to be paid for by the income, and I need to get a wage/profit from managing it, it's not going to arrange viewings itself, it's not going to chase down contractors to finish the job etc.


    it's not a 'set it and forget it' business.


    Any business owner wants to improve the business for resale, restaurants etc, may sell their business showing their profits, the more profitable, the more they can sell it for, same with a house.



  • Registered Users Posts: 264 ✭✭jo187


    Employee's do ask for raises and dont get them. So the comparison where a LL can legally raise the rent every year its not fair as there is nothing stopping a LL from doing it, where as most employee's don't get a raise every year.



  • Registered Users Posts: 12,098 ✭✭✭✭Flinty997


    But if you thought you could lose your income for up to 2yrs at a time, and risk damage a bill of thousands, even tens of thousands.

    What would offset that risk to make it viable.



  • Registered Users Posts: 14,513 ✭✭✭✭Dav010


    Because it’s an investment, and the primary aim for investors is to make profit.



  • Registered Users Posts: 14,513 ✭✭✭✭Dav010


    Employees are rarely constrained from applying for jobs with better terms and conditions. The best way to get a pay rise? Move jobs.



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  • Registered Users Posts: 3,991 ✭✭✭spaceHopper


    The rules are constantly changing, for instance, if you had a good tennant and were happy with the rent you could leave it alone and not increase it. Then if they and when they moved you could increase it by 4%x n Year but now it's gone down to 2% and there is no way to increase it beyond that or to appeal to the RTB that it is below market rate and to re baseline it. So every LL would be a fool to not increase the rent each year. You have our current government to thank for that.



  • Registered Users Posts: 124 ✭✭Back Home


    I've always found most tenants and most landlords are decent and try to do the right thing.



  • Registered Users Posts: 264 ✭✭jo187


    It's great if that applies to you. For lower end workers it doesn't really work that way. If I went somewhere else with my job I be paid the same as all the places in my line of work pay the same roughly.



  • Registered Users Posts: 12,098 ✭✭✭✭Flinty997


    You can't expect thing to change for the better unless you actually change something.

    I can appreciate it's not that simple and things are hard for people. Rent/housing is disaster for renters. The govt sits on it's hands though.



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