Government to Introduce Rent Caps in Dublin & Cork

Discussion in 'Property investment and tenants' rights' started by Sarenco, Dec 13, 2016.

  1. Sarenco

    Sarenco Frequent Poster

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  2. Bronte

    Bronte Frequent Poster

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    I heard this today and laughed. 4% apparently. And the RTB are going to monitor it. Legislation to be brought in quickly to stop landlords increasing the rents now. Did they miss the fact they already brought in a rent cap of 2 years so all the rents were already increased.

    I suspect this is anti constitutional too. As property ownership rights are pretty strong there.

    This is such nonsense. Trying to appear to be doing something but not sorting out supply which is the main issue. How does this give one single homeless person somewhere to stay.

    Does it mean that landlords now can ignore the 2 year rule?
     
  3. Sarenco

    Sarenco Frequent Poster

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  4. Gordon Gekko

    Gordon Gekko Frequent Poster

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    I have a property which is under-rented by around 20%.

    What does this mean for me? Should I increase the rent now?

    I don't want to be stuck at an artificially low baseline, with 4% increases thereafter.

    That's not to say that I want to increase the rent, but if now's my only option to do so, then maybe I will.
     
  5. Fella

    Fella Frequent Poster

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    I've free cash there that makes me very little, I find myself looking at myhome website thinking maybe i'll give landlord a go. But all these rules and regulations makes it so unattractive to become a landlord.The more the government interfere the more I think -Why would anyone want to become a landlord!
    You'd imagine they would want to give people an incentive to become landlords if there is a shortage not the other way around.
     
  6. michaelm

    michaelm Frequent Poster

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    More nonsense from an inept Government. Costs nothing to implement, gives the appearance of doing something, will fix nothing. I'm surprised that anyone wants to be a landlord.
     
  7. Palerider

    Palerider Frequent Poster

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    Agreed, I have bought a few overseas over the past ten years and these are performing for me, I came close here when a house came up near where I live but when I crunched the numbers, added risk from vacancy and repairs etc I could not justify the State taking such a high percentage, maybe 60% of what is left, this assumes I get a solid tenant that pays on time and that is becoming rare enough, nope not for me,risk / reward is way out of kilter, and don't start me off on the RTB, Rent caps will worsen the situation not improve it imo.
     
  8. Sarenco

    Sarenco Frequent Poster

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    This really is a bizarre proposal.

    According to the RTB index, Dublin house rents actually fell by 0.6% in the last quarter (and rose by 3.6% outside Dublin). The rate of increase in annual rents outside Dublin overtook the rate of increase in the capital in Q3 2015 and continues to rise at a faster rate. So why would Dublin be designated as a "rent pressure zone" when all the available evidence suggests that the greater rent pressure is being felt outside Dublin?

    How could it possibly be constitutional to limit the exercise of property rights in Dublin and Cork but not elsewhere in Ireland? Surely the reported proposal clearly and deliberately restricts the exercise of the property rights of one group of citizens for the benefit of another group in a manner which fails to compensate the first group and disregards the financial capacity or needs of the members of both groups.

    If introduced, it is perfectly obvious that the proposals will restrict the supply of the rental accommodation as increasing numbers of landlords will inevitably exit the market - this could well be the straw that breaks the back of many landlords. Those landlords that do try to stick it out (particularly "accidental" landlords in NE) will inevitably try to "front load" rental increases, thereby triggering further increases in homelessness. They certainly won't have any incentive to improve their properties for the benefit of their tenants which, in time, will reduce the quality of our existing housing stock.

    I thought the FTB tax rebate was bad but this really takes the biscuit.

    Massive fail Mr Coveney.:mad:
     
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  9. odyssey06

    odyssey06 Frequent Poster

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    Will we ever see the powers applied I wonder? Seems to be an awful lots of schemes like this, and incentives, put into legislation in relation to housing that you have to wonder if they will ever be put into effect ... e.g. giving powers to the central bank controlling interest rates.
     
  10. Dan Murray

    Dan Murray Frequent Poster

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    Hi Sarenco,

    Another of your first rate posts - well done.

    Just a question, if you get a chance, please....

    If I buy an apartment, how much freedom do I have in setting the initial rent?
     
  11. Sarenco

    Sarenco Frequent Poster

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    You can set the initial rent at whatever excruciating rate the (increasingly supply starved) market will bear.

    It's one of the obvious market distortions that comes with rent control and will incentivise landlords to move on existing tenants, by legal means or otherwise.
     
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  12. Sarenco

    Sarenco Frequent Poster

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    Last edited: Dec 13, 2016
    Here's the details:-

    http://www.housing.gov.ie/sites/def...iles/strategy_for_the_rental_sector_final.pdf

    Rent setting
    • The effect of an order designating a Rent Pressure Zone will be that annual rent increases in that area will be limited to 4% for a maximum of 3 years.
    • The limitation will apply to rents set for new tenancies and to rent reviews within tenancies.
    • When issuing a notice of rent increase to the tenant, the landlord will include information demonstrating that the rent increase is in line with the legislation (i.e. not more than 4% p.a. for the period since the rent was last set).
    • If the tenant feels that the rent set is not in line with the legislation, they may refer the matter to the RTB for a determination.
    • Where an area is designated as a Rent Pressure Zone, the 4% p.a. limit will apply to all notices of rent increase issued from the date of designation.

    Exemptions
    • Certain rental properties within a Rent Pressure Zone will be exempt –
    (a) those that are new to the rental market (i.e. they have not been rented at any time in the last two years), and
    (b) those that have been substantially refurbished in the last two years.​
    • Where a property is exempt from the measure, the landlord in issuing a notice of rent increase to the tenant will include information justifying the exemption.
    • If the tenant feels that the conditions for the exemption are not met, they may refer the matter to the RTB for a determination.
    • In addition, the provisions introduced in November 2015, whereby rent can only be reviewed every two years, will cease to apply in a Rent Pressure Zone when the next two-year review takes place – thereafter, annual rent reviews will apply.
    • The two-year rent review arrangements will continue to apply in other areas until the 2015 provision expires in 2019.
     
    Last edited: Dec 13, 2016
  13. Sarenco

    Sarenco Frequent Poster

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  14. Gordon Gekko

    Gordon Gekko Frequent Poster

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    And what happens if the current rent is 20% below the market rent?
     
  15. Páid

    Páid Frequent Poster

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    This is new. Unless I'm mistaken, previously if the tenancy ceased due to a part 4 ending (or other valid termination) the landlord was free to set the rent at any rate for new tenants (even above the prevailing market rate). Now it seems that this is not allowed. Good luck policing that.
     
  16. Sarenco

    Sarenco Frequent Poster

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    Well if you haven't reviewed the rent in the last 24 months then you should so pronto, bearing in mind that you have to give 90 days' notice of any rent increase. - http://www.askaboutmoney.com/threads/increase-of-rent-guidelines.199950/

    Otherwise, I'm afraid you're plumb out of luck - there's nothing much you can do (legally, at least).
     
  17. Sarenco

    Sarenco Frequent Poster

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    Agreed - that's a particularly daft proposal.

    So, if a property hasn't been rented at any time in the last two years, a landlord can set the rent at whatever the market will bear but otherwise can only charge 4% (or possibly 8%) above whatever rent a previous tenant was paying. Unless, of course, the property was "substantially refurbished" (whatever that means) at some point in the previous two years.
     
  18. MajorTom

    MajorTom Registered User

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    Fianna Fail want this changed to 2% !!
     
  19. Sarenco

    Sarenco Frequent Poster

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  20. Gerard123

    Gerard123 Frequent Poster

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    Does anyone know the position if a rent review has already been communicated to a tenant, fully as required, and supported by three other properties. Tenant lease due to expire end February 2017. New rent level more than 4% higher. In Dublin.