Government to Introduce Rent Caps in Dublin & Cork

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

  1. triggs

    triggs Registered User

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    An unintended consequence of cap at 4 %, in the case of properties now rented at levels well below market level,could be sale of such properties, at some distress to tennants.There is then the possibility of purchasing another property which has never been rented with no restriction on setting a new rent
     
    Dermot, Sarenco and odyssey06 like this.
  2. Bronte

    Bronte Frequent Poster

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    Right now you gave your tenant a valid legal notice. I cannot see how this new proposal, which is not law, can negate that.

    The real facts are of course that the rent rises are mostly all done and dusted by now so this will help nobody.

    And nothing at all about supply. Which is the real issue.
     
    Annie51 likes this.
  3. Bronte

    Bronte Frequent Poster

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    The good news for landlords is they are going to speed up arrears cases, they are then going to be allowed go to the district court which is a lot cheaper. Of course the raison d'etre of the RTB in the first place was to take cases out of court. So now you have to go to the RTB tribunal, and waste your time there when to really sort out your problem tenant you still have to go to court. So more time and effort and money lost.

    And when the newspapers analyse Coveney's document and see that money is going to be paid directly to solicitors there will be skin and hair flying.
     
  4. Sarenco

    Sarenco Frequent Poster

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    Not true.

    Because of the 2-year restriction on rent reviews, a very considerable proportion of properties in Dublin and Cork are currently under rented. And will now remain so until 2020.
     
    Dermot likes this.
  5. Sarenco

    Sarenco Frequent Poster

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    Agree with Bronte here - the new requirements should have no impact on any validly notice of rent increase issued prior to the enactment of this daft law.

    Any landlord in this position should be ultra-cautious that they have fully complied with all legal requirements in this regard - they won't get a second chance if they get any detail wrong.
     
  6. Bronte

    Bronte Frequent Poster

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    Well Sarenco as rents are coming down in Dublin the point is moot ! This was in reply to post beginning 'not true'
     
  7. Sarenco

    Sarenco Frequent Poster

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    They are still a heck of a lot higher then they were 18, 12 or even 6 months ago.

    This is going to adversely impact a lot of "accidental" landlords with boom-time NE properties that were just starting to see some light at the end of the tunnel.
     
  8. Sarenco

    Sarenco Frequent Poster

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  9. odyssey06

    odyssey06 Frequent Poster

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    "Ultimately you can decide to freeze rents in the morning but that doesn't actually solve the problem..."
    - Simon Coveney

    Way to destroy your credibility Minister Coveney.

    Get more houses built, get more supply out there - anything else is a sticking plaster and he will be ultimately considered a failure without that.
     
    Delboy likes this.
  10. Dan Murray

    Dan Murray Frequent Poster

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    If I buy an apartment, are we saying that I can set the rent at whatever level if it hasn't been rented in the previous 2 years and am "referenced" to the previous rent if it has unless "substantial improvements" are carried out?

    Has the term "substantial improvements" been defined?
     
  11. Sarenco

    Sarenco Frequent Poster

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    I think we will have to see the draft legislation to answer those questions definitively but I don't see how the purchaser of a property is supposed to know whether or not that property has been rented in the previous 2 years and, if so, at what rent.
     
  12. facetious

    facetious Frequent Poster

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    Again, the government are putting sticky plaster on a wound that requires stitches. Their every attempt at improving the legislation has resulted in a disaster.
     
  13. Thirsty

    Thirsty Frequent Poster

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    If this becomes law, I'm getting out & selling up; and another family lose the roof over their heads.
     
  14. Páid

    Páid Frequent Poster

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    Dr. Rory Ahearne has a piece about it on Broadsheet.

    http://www.broadsheet.ie/2016/12/14/an-alternative-strategy-for-affordable-homes/
     
  15. valery

    valery Frequent Poster

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    So you have a good tenant, didn't increase the rent to market levels and you will be effectively penalised when the current tenant leaves. Madness.
    Did whoever draft this legislation really think it out?
     
    Dermot likes this.
  16. nbc

    nbc Frequent Poster

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    Question:
    I currently rent a 3 bedroom property in Dublin for E1100- Its let as unfurnished and the tenants have been there for 3 years. The market rent for unfurnished is probably 1500 and furnished 1650.
    My question is: If the tenants leave in 6 months and I let it Furnished I will only be able to charge 1100 plus 4% or can I argue that I should be able to charge more as I've had to furnish it?
    This appears very unfair and in fact will cause an increase in rents as I will have no option but to write and advise of an increase now.
     
  17. Sarenco

    Sarenco Frequent Poster

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    Well this policy initiative has now descended into a farcical game of political "chicken" between FF and FG.

    http://www.rte.ie/news/2016/1214/838799-rental-strategy/

    Does it remind anybody else of the Irish Water fiasco?

    Meanwhile, I was talking to a letting agent pal earlier today and he tells me that his office are flat out advising any client that can to issue rent increase notices ASAP.

    What a mess.:(
     
  18. Gordon Gekko

    Gordon Gekko Frequent Poster

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    Sorry, so if I'm charging less than the market rent and my tenants move out, I'm still wedded to the lower rate plus 4% with the new people?

    Unbelievable if true.

    Sadly, my tenants are about to get a nasty surprise in the mouth of Christmas. Their rent is going up by 33%.
     
  19. Sarenco

    Sarenco Frequent Poster

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  20. Bronte

    Bronte Frequent Poster

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    Not a bit surprised that landlords are loading on increases now. You'd be mad not to. So Coveney has actually made the situation worse for tenants this week.

    Of all times to introduce rent caps, when the market is surely at it's peak, is the worst. It should have been done 10 years ago and linked to the rate of inflation.

    All of course this does nothing whatsoever to increase supply.