Effect of rent controls? Higher rents and reduced supply

Sarenco

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If it's a new charge for something that wasn't previously considered part of the rent then I think there'd be no comeback?
That would appear to be the factual position - look at the letter reproduced in this article:-
http://www.thejournal.ie/robin-hill-3380861-May2017/

I don't see any breach of the new rent control rules in this case.

Incidentally, the fact that the landlord has to terminate the remaining tenancies on a phased basis (as a result of the "Tyrrelstown amendment" introduced last year), in order to secure vacant possession of the block, is actually keeping much needed properties off the rental market.

Another good example of the unintended consequences of Government interference in the market.
 

SqueezedMiddle

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Obviously the REIT who are doing it so publicly think they have it in the bag.
I'm with the REIT on this one if it comes to the fight they are clearly ready to have. Those guys make sure they have their ducks in a row before they do anything.
 

Firefly

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If the rent previously included these charges, then hiving them off and charging for them separately seems like a blatant way to get around the rent cap.
I agree but it reminds me when my bins were collected. Don't remember getting a reduction in my taxes for that!
 

cremeegg

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We often see calls for more professional landlords in this country, less of the small time landlords, who are considered less than professional.

Well I don't think any small landlord would have thought of this and even if they did, they wouldn't have had the face to go through with it.
 

Firefly

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SqueezedMiddle

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We often see calls for more professional landlords in this country, less of the small time landlords, who are considered less than professional.

Well I don't think any small landlord would have thought of this and even if they did, they wouldn't have had the face to go through with it.
I certainly wouldn't want to go first anyway.
Now that first is out of the way though......
 

Sarenco

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To be fair, not too many small time landlords supply heating and hot water to their tenants.
 

odyssey06

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I just realised... €140 per month... for heating and hot water (not entire electricity bill).
Unless every apartment has its own hot tub I don't see how that represents the legitimate costs of supplying said service.
Maybe it doesn't breach the new rent controls but maybe there's another angle it could be challenged under!
 

Sarenco

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Well, this case is quite unusual in that, as I understand it, the hot water is supplied from a central tank and less than half the units in the block are actually occupied.

In other words, €140 per month may not even cover the cost of supplying hot water to the remaining tenants.

I still think it's a crying shame that perfectly good apartments that are close to good transport links and employment opportunities are being held off the rental market to avoid daft Government regulations.

But I suppose that doesn't make for good headlines.:(
 

Leo

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€140 a month wouldn't be too far off the mark. They're D1 rated, and the SEAI estimate an annual cost of €1300 for space and water heating for 2 bed apts in that category based on 2014 fuel prices. Servicing & maintenance would be additional. While community systems like these should be more efficient, there is little incentive to conserve, so the power showers last a lot longer and the thermostat stays a little higher.
 

Sarenco

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I see a FF Senator is now calling on the Government to slash CGT on vacant homes. Apparently this cunning plan will "immediately solve the housing crisis."

https://www.rte.ie/news/2017/0511/874201-housing/

No explanation is given as to how any new purchaser would be any less inclined to leave the property vacant than the existing owner.

I notice the good Senator is also an estate agent - vested interest perhaps?
 

Sarenco

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MichaelCOH

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Spoke to an estate agent the other day, he said at least half the properties on his books were landlords selling up. He also told me he put a two-bed Dublin apartment up for rent on Daft - he had 150 replies within an hour. The whole situation is incredible.
 

SqueezedMiddle

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Price of one bed apartment s are going up a lot all of a sudden according to the estate agent I was talking to. I presume two beds too.
And they are being.sold as soon as they are put on the market for above asking.
I wonder is it reits or owner occupiers buying them up, because surely no sane person wants to get into renting nowadays.
 

odyssey06

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In the long run it might be for the best if the one property landlords are squeezed out in favour of owner occupiers and companies with a portfolio of properties...

There are bad tenants out there.
If you have one property and end up with a bad tenant, you're screwed. It's not a good business model.
If you have a dozen, you can carry it.

In the short run, I really wouldn't want to be looking for a place to rent in Dublin right now.
 

smarts

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Well, here's one way around the new rent caps that I hadn't anticipated:-

"As Ireland's rent crisis continues to worsen, "sex-for-rent" ads have begun to appear for properties in Dublin".

What next?
I think we will see more and more desperate behaviour as tenants deal with impossible rental costs. People will refuse to get out, refuse to pay rent, sublet on AirBnB, overcrowd properties etc. I am planning to rent out my apartment but only if I can find a tenant that I am comfortable can afford it. I and I think most landlords would prefer to charge less but the current taxes and regulations mean we need to keep up with market rates. I just hope the government sees sense and changes the policy.
 

Bronte

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I cannot read the letter. If water and heating was included in the rent up to now then you cannot just decide that it now has to be paid. Tenants need to complain to the PRTB.

For example I pay the bin charges for my properties. And the communal lighting.

Looked to me also that the letter heading is a 'creative' entity. As distinct from a 'legal' entity.

Anyone able to read the letter please.
 
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