Leaving an apartment empty for two years

Of the very few properties left for rent in Ireland I would love to know the ratio between those who receive tax benefits and those who do not?
Anyone know?
 
Brendan Burgess said:
Not a good idea as he sacrifices €6,500 a year net for two years or €13,000 up front.

After two years, the legislation may well be changed and he could be stuck with charging the same rent.
After two years, rents may have fallen so he might not be getting more than €1,300 a month.

If he is still unhappy in two years, he can sell the apartment and buy another one which has not been let and charge market rent. Or he can do that now or just exit the market as many landlords are doing.

Sinn Féin is proposing to require landlords who want to sell to be forced to sell with the tenants still there. So it is probably time to get out anyway.

Brendan
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Agreed - its also possible that far more extreme rent controls could have been introduced by then, and he could even be faced with a scenario where there are set rents for his property type, potentially even less than he is getting right now.
 
Mamamia22 said:
Thanks Brendan. Good synopsis. His landlord friend is quite adamant that vacating the property is the only way to go. I thought with 2% pa he might catch up a bit eventually. I suppose he could also sell and buy back in. Would cost him at least 10k between auctioneers fees, stamp duty and moving furniture. Would be hassle. The upside being that rents aren’t likely to fall in the near term. But they could ?
How likely are SF to enforce sales with in situ tenants ? Is it against owners rights ? Would devalue many properties esp those with low rents.
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SF don't need to do this - its already a practice respected by anybody who inherits a tenancy from a deceased relative. The tenant themselves will be very quick to rush to RTB and make a claim. This is already the case, and that was brought in under an FG government and reinforced under the current coalition.
 
I know people who just didn't want the hassle or work of having tenants. Just used the property as extra space for visiting relatives and family, even storage. They were happy that with the capital appreciation that got as an investment.
 
A West Dublin based letting agent has advised that leaving the property vacant for two years is now common practice. The agent is aware of dozens of landlords doing this in order to re enter the market at market rates.
What a mess the RPZ legislation has caused.
 
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Others prefer to take the fine on the chin.

It's not just about rents. Selling a former rental with a low rent cap will hurt the price a new landlord will buy the property for. Which means it will likely still to an owner occupier instead. So shrinking the amount potential buyers. While it was/is a seller's market all these things are cumulative.
 
Two years rent is quite a hit. You still have to pay management fees, utiliyy standing charges etc. It’s more likely to be sold to an owner occupier. Don’t think too many landlords are entering the market nowadays.
 
There's always churn landlords entering the market. But there are more leaving then joining. The ratio of smaller landlords to large landlords had shifted to the larger ones. Which changes number of properties to landlord ratio a bit but the general trends is less landlords and less rental properties for sure.
 
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