Government to Introduce Rent Caps in Dublin & Cork

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
 
Gerard123 said:
Does anyone know the position if a rent review has already been communicated to a tenant, fully as required, and supported by three other properties. Tenant lease due to expire end February 2017. New rent level more than 4% higher. In Dublin.
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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.
 
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.
 
Bronte said:
The real facts are of course that the rent rises are mostly all done and dusted by now so this will help nobody.
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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.
 
Gerard123 said:
Does anyone know the position if a rent review has already been communicated to a tenant, fully as required, and supported by three other properties. Tenant lease due to expire end February 2017. New rent level more than 4% higher. In Dublin.
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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.
 
Well Sarenco as rents are coming down in Dublin the point is moot ! This was in reply to post beginning 'not true'
 
Bronte said:
Well Sarenco as rents are coming down in Dublin the point is moot ! This was in reply to post beginning 'not true'
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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.
 
"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.
 
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?
 
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.
 
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.
 
If this becomes law, I'm getting out & selling up; and another family lose the roof over their heads.
 
Dr. Rory Ahearne has a piece about it on Broadsheet.

The government’s Strategy for the Rental Sector, while containing the welcome provision of rental restrictions is ultimately flawed because it does not link rent increases to inflation, excludes areas outside Dublin and Cork (particularly the commuter counties), does not provide security of tenure, proposes the sale of public land ‘below market value’ (i.e. give away/privatising a valuable public resource) to global real estate funds to increase ‘supply’, and is based on the failed (and contradictory) market assumptions that increasing rents will lead to further supply and increased supply will lead to affordable rents/house prices.

Firstly, in relation to the Strategy for the Rental Sector, there is no evidence or research provided by the government or the Department of Housing as to how the 4% increase in rents is being justified.

For example, 4% per annum represents 8 times the increase in annual earnings for full-time employees in 2015. It has no justification from price inflation as the (Consumer price index) is running at -0.3%. Within the CPI there is a specific category, Furnishings, Household Equipment & Routine Household Maintenance, which you would think would be a reasonable indicator as to the main on-going cost for landlords. Inflation for that category is running at -4.3%
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http://www.broadsheet.ie/2016/12/14/an-alternative-strategy-for-affordable-homes/
 
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?
 
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.
 
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.:(
 
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%.
 
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.
 
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