Thinking of selling a rental property? You should probably get a move on...

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Sarenco

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The Tanaiste confirmed today that the Government will not be opposing a Labour Bill that seeks to provide greater security of tenure for tenants.

The Bill will remove the ground which allows a landlord to end a tenancy on the basis that they intend to sell the property within three months.

The Bill also provides that a landlord can only evict for renovations where “no reasonable measures can be taken to maintain the dwelling fit for human habitation”. It also deals with landlords evicting renters to move in their own family member – it would restrict this to just spouses, civil partners or children.

www.oireachtas.ie

Residential Tenancies (Tenants' Rights) Bill 2021

www.oireachtas.ie
 
Obviously that doesn't necessarily mean it will become legislation, it will be up to the Government to decide on the legislation?

If, as Govt has stated, that it is unconstitutional to have a rent freeze for 3 years then is it also unconstitutional to prevent someone selling a property they own?
 
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There are other silly things like prohibiting landlords from banning pets.

Another one is giving tenants the right to opt for an unfurnished dwelling.

This will just accelerate landlords' rush for the door.

Politicians obviously want a perfect, but very small, rental sector in Ireland.
 
The Labour Party and awkward tenants would need to be careful what they wish for. Dealing with a one house (so called) landlord and dealing with a conglomerate that owns hundreds of properties are 2 completely different entities. Lots of tenants will soon see themselves dealing only with the big boys, the Goverment will be left to house everyone else, because the small investor is going to be a thing of the past.
 
aristotle said:
If, as Govt has stated, that it is unconstitutional to have a rent freeze for 3 years then is it also unconstitutional to prevent someone selling a property they own?
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Well, the Bill (if enacted) would not actually prevent a landlord from selling a property - it would simply prevent a landlord from terminating a tenancy in anticipation of a sale.

In other words, the sale of the property would have to be "subject to tenancy".

In most cases, you would expect a residential property that is subject to a tenancy to sell at a discount to an identical property where vacant possession can be obtained.
 
Sarenco said:
In most cases, you would expect a residential property that is subject to a tenancy to sell at a discount to an identical property where vacant possession can be obtained.
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With bells on.

Adverse selection will apply. Buyers will automatically assume that a sale with a tenant in place means a bad tenant.

You will only get cash buyers ready to take on problem tenants and a battle at the RTB. They will look for huge discounts to fair value.

Owner occupiers will stay well away. Would a bank even lend without vacant posession?
 
Not long now until a landlord is just the caretaker and bill payer on their own property.
They will have no rights to do anything including selling it for fair market value.
Basically the landlord will just be paying for the upkeep for whichever tenant "owns" the property.
 
the amount of rental properties is going to go through the floor. They just want big institutional investors. They don't want small time landlords at all. Full stop.
 
noproblem said:
The Labour Party and awkward tenants would need to be careful what they wish for. Dealing with a one house (so called) landlord and dealing with a conglomerate that owns hundreds of properties are 2 completely different entities. Lots of tenants will soon see themselves dealing only with the big boys, the Goverment will be left to house everyone else, because the small investor is going to be a thing of the past.
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That's tomorrows problem and they never care about that. Anymore than they care about who is going to pick up the tab and housing costs for retired people who didn't buy their own home, because you should be renting like good Europeans and Irish people have an irrational attachment to property ownership.
 
The proposed new legislation is designed at getting at the private Landlord. Who is going to pick up the slack in smaller urban areas?.
I cannot see the corporate big boys doing it.
The rental sector in this country must be the most regulated and complicated in Europe. Every 4-6 months in recent years there are more changes added on.
 
The tenant has to be placed above all else. The tenant is the victim. All additional rights and protections are for the tenant. Pay no rent and they are protected for upto 2 years on average staying in the property. The onus is on the landlord to do everything in their power to go through the processes and procedures to get them out. The landlord is the evil in the story. Punish, extra restrictions, requirements, all that. 86% of landlords own 1 or 2 properties. I would hazard a guess and say these are the landlords with below market rents and long term tenants in most cases. These are the people who are going to flee the market. It needs to be fair for both tenants and landlords. Yes you will have bag eggs in both groupings, but both need the other to survive.

The corporate landlords are charging top rents. It would be interesting to see breakdowns of rent charged by individual investors and corporate landlords in similar areas for similar properties. Labour Party are jumping on the populist ideals of freeze this, more rights for tenants etc. Be careful what you wish for perhaps. In five years time, a lot of renters still won't be able to afford to buy houses and may find themselves in a situtation, wherre they cannot find a house they can afford to rent either. Where will the government put them then??
 
The latest "heads I win, tails you lose" policy under consideration:

Rents will only be allowed to rise in line with inflation to a certain point before being capped under reforms being considered by the Department of Housing.

Reforms linking rent increases with the rate of inflation were introduced by the Government in July, but have been targeted as ineffective by the Opposition after inflation rose to 3 per cent in the latest figures, significantly in excess of recent averages.

The increase, were it to be sustained, could result in higher than anticipated rents.

Minister for Housing [broken link removed] O’Brien has now asked his officials to examine whether the inflation-linked rent increases could be capped once they hit a certain level.
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This will limit the supply of houses for owner occupiers I presume.

If a house is sold with a tenant in situ and the tenancy can't be terminated, then no owner occupier could buy it.

Maybe a cash buyer could buy it and then give notice that they want it for themselves. But that could take years to get them out.

I wonder will any TD or Senator have the courage to point out how ludicrous this proposal is?

Brendan
 
NoRegretsCoyote said:
There are other silly things like prohibiting landlords from banning pets.
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I have seen a house absolutely wrecked because the tenants left their dogs in the house all day while they were in work. Dogs peeing on the floor, it going under the skirting boards, which between that and the chew marks meant they had to be replaced, along with all the scratch marks on doors and windows. The landlord of the property now won't rent the property for people with pets and actually had trouble renting it last time out as most people had a dog.

If a landlord is prohibiting from banning pets, by that logic, they should be prohibited from banning people. In other words, they should have to rent to whoever comes up with the deposit first, no matter how undesirable they are.


In the govts attempt to appease tenants, they are pushing out the small landlord and we will end up with just large corporate landlords. Tenants can say goodbye to landlords not increasing rent to keep good tenants. It will be an increase every year in line with limits in the area. Wait until compounding takes hold and the property becomes unaffordable after a few years.

Steven
www.bluewaterfp.ie
 
Steven Barrett said:
In the govts attempt to appease tenants, they are pushing out the small landlord and we will end up with just large corporate landlords. Tenants can say goodbye to landlords not increasing rent to keep good tenants. It will be an increase every year in line with limits in the area. Wait until compounding takes hold and the property becomes unaffordable after a few years.

Steven
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Do we need to wait at all for property to become unaffordable?
 
Populist policy is being driven by left wing intellectuals. Labour are running scared of other socialist parties incl SF, PBF, etc and looking to put their stamp on housing policy. Govt have little choice to go with this as otherwise are branded as pro landlord anti tenant. Labour are now saying they don't want properties viewed as investment / income generating but as homes.
They are looking to implement a '3 year rent' freeze which judging from previous temporary measures would likely be extended past 3 years so effectively indefinite, indefinite (up from current 6 year) Part 4 tenancies, landlords only able to end leases if property reqd for spouse, civil partner, or child, tenants allowed to have pets in houses / apartments!!, max of 1 mths rent as deposit, tenants entitled to request unfurnished properties - I assume after lease has been signed leaving LL with the expense of removing and storing furniture until needed again.
Smaller LL's in Ireland are an endangered species and this bill will likely cause more to exit the market at first opportunity, and discourage others from entering it.
 
Small landlords are fleeing the market. House prices are booming and the rental market is becoming more dangerous, more complicated and there's a strong anti landlord vibe growing stronger. The government aren't quelling this as the anger should be directed at them and not the landlords.

The rental problems are going to get a hell of a lot worse before they get better.
 
Steven Barrett said:
Tenants can say goodbye to landlords not increasing rent to keep good tenants. It will be an increase every year in line with limits in the area.
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Isn't this already the case since landlords can no longer reset the rent to market rates after the tenants leave?
 
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