40% of rented houses in the vicinity of UCC are vacant

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Greenbook

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Article here from the Labour Party.

This seems extraordinary - 40% of rental properties near UCC are vacant. Landlords are apparently asking too much rent from students, so students don't rent and the house or part of the house is just left vacant for the entire year it seems.

Surely the landlord would rent to non-students at the higher rent (even if the place isn't great, there is such demand, the landlord would get someone) or reduce the rent to a level that suits students.

Instead the landlords are so well off they can just leave 4 in 10 houses in the vicinity of a university idle.

I wonder if it isn't rent a room which is the issue. These are quite expensive, I've looked on UCC studentpad and are the least popular option among students I hear. From talking to relations and friends with college going children the top preference is actually the private landlords, followed by the complexes and last choice, after 1st year, is digs.
 
DannyBoyD said:
Students grow up finish their degrees and leave
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So you are saying that landlords will insist on students because the students will leave every May and there is no risk of a 6 year or permanent tenancy?

I had not thought of that. I think you are correct. That is something that would certainly influence landlords. Many with houses around UCC may only now want to rent to students. You would still think they would decrease their rents though. I mean if you don't get students in September that is it for the entire year and you may have no more luck September 2027. Hardly a sensible way to run a business.

You are right though, student letting is likely coming becoming more popular as students will leave. This was hardly the intention of the new rules though.
 
Fortune said:
From reading posts on this website, landlords are terrified of tenants that won't leave
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Well, I would not say terrified, but if the tenant leaves you can sell or use the property for family, you can also rent again at a higher rent. That is flexibility.

If the tenant doesn't leave, you are hoping the government will allow you a real rent increase at year 6 or, if you want to sell, you'll find another landlord with cash who'll take the whole thing, tenant and all, off your hands.

You're also hoping that you aren't stuck with even worse new rules due to a change of government or additional restrictions.

You can see where the preference for short term tenants comes from, another unintended consequence of the new rules.

Before rent caps etc. kicked off in 2016 most landlords were looking for a reliable tenant who'd stay a number of years, not anymore though
 
Greenbook said:
Before rent caps etc. kicked off in 2016 most landlords were looking for a reliable tenant who'd stay a number of years, not anymore though
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Is that not a perverse impact of all the new regualtions.... that landlords do not want tenents who stick around!! I count my blessings that I never got into PRS
 
jfrank said:
Is that not a perverse impact of all the new regualtions.... that landlords do not want tenents who stick around!! I count my blessings that I never got into PRS
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Yes, a very wise move.

I think the new regulations do impact. You're less likely to be concerned with how long tenants will stay if you can issue an NoT and sell with vacant possession when you want to. If you can only (in theory) sell at year 6 or never if you are a large landlord, then how long the tenant is likely to stay becomes much more important.
 
Greenbook said:
This seems extraordinary - 40% of rental properties near UCC are vacant.
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This is NOT what the original article is stating.

www.irishexaminer.com

'Rooms are not being filled and this is costing them': UCC urges landlords to cut rents

UCC president John O’Halloran said the college is urging landlords to cut prices to try to address its accommodation crisis
www.irishexaminer.com www.irishexaminer.com
UCC has identified that some private rental properties within walking distance have an unoccupied rate of up to 40%, primarily as they are seeking too much rent.

This is all very vague and carefully worded.

Hypothetically, if just one property, lets say its 5 storeys high close to UCC and each level has its own large open plan studio with ensuite because its a protected building and that's all the fire officer will allow on each floor. The fire officer also won't allow a bedroom in the basement so it has a gym and cinema there instead beside the secure parking behind the private gate. It's obviously aimed at young professionals. Only two floors or studios are currently let for obvious cost reasons or they were recently refurbished so this property is at 40% occupancy. Suddenly this gets spun and we get to the point where 40% of student rental properties near UCC are vacant.
 
Duddaa said:
This is NOT what the original article is stating.
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That is correct, I misinterpreted it.

But it is mysterious. UCC may be able to identify that a certain percentage of properties are vacant ie. they keep an eye on them, no one is seen coming and going, no lights come on at night, etc.

But how do they know the vacancy rate within individual rented properties?

How do they also know it is caused by landlords asking for too high a rent? It could be as you say fire safety or refurbishment.
 
Greenbook said:
But it is mysterious. UCC may be able to identify that a certain percentage of properties are vacant ie. they keep an eye on them, no one is seen coming and going, no lights come on at night, etc.

But how do they know the vacancy rate within individual rented properties?

How do they also know it is caused by landlords asking for too high a rent?
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I'd say the research is as lazy as the article. Someone in the accommodation office is under pressure to find places for students so looked at Daft.ie, saw a building with a few units available in a larger building. Looked at the price and thought 'well they're not let as the price is too high'. That got put on a email or post someplace which got to the President of UCC who thought maybe we could email some of these to see if we can do a deal. This was picked up by a poor journalist who labels it as 'research from UCC' and then its rephrased by an opposition Politian for their own benefit.

I know nothing about this story, but I wouldn't be surprised if my assumption was surprisingly accurate.

EDIT:
I don't know Cork but have done my own 90 seconds of research on Daft for properties near UCC. It appears circa five apartments are available to rent in what looks like a very nice building called Lancaster Gate. These 2 beds are over 3k a month and it has a 1 bed for 2.5k a month. Lovely building and facilities overlooking the river obviously aimed at professionals.

There's your research. They're obviously not let as they're too expensive for students!
 
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Duddaa said:
There's your research. They're obviously not let as they're too expensive for students!
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I think you are very likely correct there.

Possibly the landlords in Lancaster Gate or similar, as they consider the applications from the highly paid professionals, are scratching their heads wondering why the head of UCC is writing to them telling them their rents are too high for students
 
One of my kids is a UCC student and from my knowledge of the rental market in Cork, I think UCC are refering to private puropse built student accomodation. All of the cheaper stuff is booked out since March, but if you check the websites of some companies (eg. Yugo) you will see lots of availability for very expensive rooms (€1200+ per month). By comparison UCC's own student accommodation is half this price but in very, very short supply!
 
Mocame said:
One of my kids is a UCC student and from my knowledge of the rental market in Cork, I think UCC are refering to private puropse built student accomodation. All of the cheaper stuff is booked out since March, but if you check the websites of some companies (eg. Yugo) you will see lots of availability for very expensive rooms (€1200+ per month). By comparison UCC's own student accommodation is half this price but in very, very short supply!
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That is a possibility also.

The article makes it sound as if ordinary private landlords are doing this. But I'd honestly think that the private landlord with one house or a couple of houses knows how much he can get from students and charges accordingly. He's unlikely to leave a house 40% vacant until next year in the hope he'll get more takers then. If nothing else, the students will probably sneak in their friends to the vacant rooms. If he really wants more money, a bit of sprucing up will get him non-student higher paying tenants.

As @Duddaa says, it is badly researched. A lot of questions are just left hanging.
 
@Mocame is this what is happening here. It is the student complexes that the Professor is talking about and it is another unintended consequence of the new rules.

Could this be what is happening?

1. Student complexes can only raise the rent every 3 years.
2. So the rent in September 2026 can only increase by 2% pa until 2029
3. If the complex decreases the rent on a studio for example from €1200 to €1000, it is stuck with €1000 until 2029. Even if loads of students turn up next year clamouring to rent studios at the higher price, it must offer this one at the lower one.
4. Even worse in 2029, if the €1200 studios increase by 10% to €1320, the €1000 studio needs a 32% increase to reach the same level. The RTB will surely investigate.
5. Worse still, if students who are renting studios for €1200 find out that the exact same studio is now going for €1000, they will contact the RTB and claim that they have been charged rents in excess of market. So the accommodation complex is now facing fines and sanctions and rent repayments.

Overall, it makes more sense to keep quiet and leave the unrented units vacant and hope for more success after Christmas or in 2027. This is even though there is a massive shortage of student accommodation.

I think @Duddaa is right as well, there is likely some lobbing in of vacant high end accommodation for professionals which happens to be in walking distance of the university. @Duddaa is correct as well, no investigation by the journalist so still very hard to figure what is happening here.
 
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