no one thing is the solution. But I think if landlords were consulted about leaving or staying in the market, the following are likely notes of feedback.
1) Taxation - LL are taxed to much to make a profit and worthwhile in terms of the risk they take and the investment of upto hundreds of thousands of euros in equity in a property.
2) Stuck in RPZs. Good and fair LL's have been punished for doing just that with the temporary intrduction (there's a laugh) seven years ago of RPZs. These motivate people to leave the sector and compel new entrants (what few their are) are charge the absolute maximum rent achievable.
3) Non-paying tenants. If tenants don't pay, they should be out within 3 months, or even less. If I go into a restaurant for my lunch, eat it and get the bill and tell the owner I cannot pay, I do not sit at the table and order dinner and eat that and repeat again. I don't eat in the restaurant for 2 years without paying any bills and expect to be fed. And yet with housing, it's legal to do just that. How is that fair? Big motivator for LL's to exit.
There are many others, but I don't see anything positive in the sector for LL's in the last 7 plus years. Nothing. Just increased taxation, increased regulation, increased threat and a reduction in rights. Who in their right mind invests in such sectors and remains in such sectors??? Things are bad now, they are going to get worse again in 2023 and even worst again in 2024 and 2025. The rental sector, I don't know if it can't be rescued at this stage, I think if they did something on the three points above, it would certainly retain a significant amount of LL's. Some will leave, that's normal and to be expected. It's normal, because there should be new investment. But what little new investment there is, is charging €2000 for a property that was probably €1,200 or €1,300 by the LL who is exiting.
As these LL's leave, more people are pushed into emergency acccommodation, paid for by the State. The State loses 52% of the €1,200 rental income. Whereas by giving a tax break and permitting the LL to say increase rent to €1,500 or €1,600 or something closer to market rent would keep the tenant out of emergency accommodation and tax revenue from the landlord would be retained. I know someone will pick up the tenant is the loser here, but maybe reduce rental income to 20% and reduce rents to €1,000??? I'm a LL and I would rather charge rent of €1000 a month @ 20% tax rate than charge €1,600 a month at a tax rate of 50%. Both scenarios I pocket €800 but I'd infinitely prefer one over the other.
It's a combination of things are going to start the improvement process. Unfortunately, this Minisiter and the government seem to total unwilling, not brave enough, or too bloody stupid to actually do something on the supply side (i.e. the LL) to try and improve things for the demand side (i.e. the tenants)