Effect of rent controls? Higher rents and reduced supply

Well its decease in registrations. Considering high profile recent cases of tenancies not being registered with RTB you can read between the lines.

Considering we shut down the economy for 2yrs and people moved home so they didn't have to pay rent while not working. I'm not sure 5% is that bad.

here were 320,000 landlords in 2016 and recent figures show there are currently just over 298,000.
Click to expand...

That's about 6.8% decline in LLs.

if you consider the number of tenancies. This means the the ratio of LLs with multiple properties is increasing as LLs with single properties leave.

This isn't a new trend.
More landlords have multiple properties
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More landlords have multiple properties

The number of landlords in Ireland with multiple properties increased last year for the first time since 2015.
www.irishexaminer.com

It what popular opinion wanted, and the Govt delivered legislation to promote that aim.
 
As for the supply side

https://www.eolasmagazine.ie/wp-content/uploads/2019/03/Ireland-2040-1-1024x761.png
 
Purple said:
It certainly isn't a myth. The question is why it's happening. Are rent controls a bigger factor in that exodus than positive equity i.e. taking their profit, age profile and fear of the next government?
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In my humble opinion, rent controls are the primary (not the sole) reason for the recent net reduction in rental stock.

Accidental landlords coming out of negative equity are certainly now in a position to exit the market but I don’t believe they would be doing so in large numbers if they were able to generate a reasonable risk-adjusted return on their rentals.

I don’t really see why the age profile of landlords is particularly relevant. As it happens, most landlords that I know are long since retired.

Fear of a future Sinn Fein led government? That might be a motivating factor for some landlords but it’s hardly a new concern.

In the here and now, landlords can see that their costs are rising, without any ability to meaningfully increase their rental income. The consequent squeeze on rental profit is causing many landlords to conclude that staying in the business simply isn’t worth the risk and hassle. So they’re heading for the exit doors.
 
Take your example of 2800 rent per month.

What costs have risen in running the rental that require squeezing that income. Considering these are historic high rents.
 
Let's not be vague.

Can we put a number in these costs. So for 2022 which of these increased and by how much?

Rtb
Mortgage
Service charges (what are these?)
Insurance
 
I don't say anything was a myth. Reverting to strawman about myths ever 5 mins is not endearing.

You could approximate most of them.

Why? I'm wondering if it's not viable with relatively small increases at a time of peak rents was the rental ever viable. The LL should have a reserve for emergencies and bad tenants and recessions.
 
How could I possibly approximate how much any landlord’s mortgage costs, to take one example, have increased? It’s obviously totally dependant on a variety of individual factors.

The point I’m making is that rental profits have come under pressure due to rent controls to the point that many landlords are exiting the business.

I really don’t understand why you are arguing otherwise - it’s blindingly obvious.
 
If they can't survive with historic high rents its not a viable business and they are right to quit.

It's not hard to estimate costs knowing the rent and range of likely values.
 
AlbacoreA said:
If they can't survive with historic high rents its not a viable business and they are right to quit.

It's not hard to estimate costs knowing the rent and range of likely values.
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The level of rent is not the only issue. All businesses have contingency funds but if you have a delinquent tenant, an inability to raise rents, increasing costs and ever increasing one sided legislation then what exactly do you expect any rational business person will do?

The biggest issue whether you accept it or not is the rent controls and the whole uncertainty the ever changing legislation is creating.

An inability to trade in a market (which is what private rental is) where it is so one sided and getting worse is why landlords are leaving.
 

I don't disagree with you. But you've mentioned a load of issues not solely RPZ. These issues are cumulative.

I'm not sure what you mean by an inability to trade. Are you suggesting renting can't generate a profit. Which isn't credible.

RTB Rental Sector Survey - The Medium Landlord Profile | Residential Tenancies Board

RTB operates Ireland's National Tenancy Register and resolving disputes between Landlords, tenants and third parties. Governed by residential Tenancies Act 2004. View more information on landlords and tenancies.
www.rtb.ie
 
What are you trying to demonstrate by posting that RTB presentation? It has absolutely nothing to do with the topic under discussion.

Again, nobody is saying that rent controls are the only reason that landlords are exiting the market.
 
But that presentation has nothing to do with income and this not a discussion about “viability”.

At this stage I really have no idea what point you are trying to make.
 
Sorry completely irrelevant.

".....Medium private landlords (3-20 tenancies) Likelihood of selling their current properties by incomes from lettings, in the next 12 months (n=250) 2021....."
 
"....Rents surge by up to 17% as laws flouted..."

Rents surge by up to 17% as laws flouted

"Government is constantly afraid that if they put in too many measures in favour of tenants that landlords will leave the market," says housing expert Rory Hearne.
www.irishexaminer.com

If anything the rules will get more strict.
 
The rpz result in a decrease ability to earn the contingency fund you reference in a previous post. Remember costs are continually increasing. Have you tried to get a tradesmen lately?

Any fully functioning market allows buyers and sellers enter/exit that market freely. If a seller chooses to leave a market what they do with their asset is their business. However this is not the case with the rental sector.

A fully functioning market allows the market set the price and by extension the price buyers are willingto pay (ie equilibrium price). The rpz has stopped this fundamental basic of a market.

This is what I mean when I say "inability to trade".
 
Eoin O'Brion has a detailed outline of his plans for regulation of private rented housing in today's Sunday Business Post. This is the most significant paragraph:

'We would give tenants real security of tenure by removing the sale of property as a grounds for issuing an eviction notice. We would also narrow the use of landlord or family member grounds for eviction to very specific categories, and we would introduce an NCT-style certification system for landlords to ensure that property meets minimum standards'.
 
Over the the 20yrs or more as economic conditions change there's been constant change to the legislation and rules to improve and protect tenant's. Which is fine. The problem is theres been almost no changes to improve things for the Landlords. In fact it's got a lot worse. So that's why more landlords are leaving than joining.
 
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