Landlords body: Rent controls have made matters worse

[dereko1969]

Report claims rent controls have backfired and worsened crisis

Study claims rent pressure zones have added to rent pressures

www.irishtimes.com

Government measures to control rents have backfired and in many cases have led to an increase in rents, a new report has claimed.

The study by economist Jim Power suggests that Rent Pressure Zones (RPZs), introduced in 2016 to limit rent price increases, have resulted in significant “rent rigidities” and an inefficient two-tier system where the proper maintenance of rental properties is no longer economically viable.

This has prompted many smaller landlords to exit the market and to be replaced by institutional landlords with new stock at higher rents.

A longstanding complaint against the RPZ system is that new rental properties or tenancies are excluded from the restrictions and can be put on the market at any rent.

“The real losers are tenants at the lower end of the market,” Mr Power said

Market​

The report, commissioned by the Institute of Professional Auctioneers and Valuers (IPAV) and the Irish Property Owners Association (IPOA), concludes that the Irish rental market is not functioning in an effective manner and that RPZs are undermining the market and not achieving what they are intended to achieve.

In other news the Turkey Rights Association has commissioned a report that concludes that Christmas is a bad idea!

 

[T McGibney]

Comparing a rental crisis (or an unfolding disaster if you're at the receiving end of it) to Christmas is a new one.

 

[Purple]

I have an excellent tenant, who repairs everything themselves and keeps the house in perfect condition. It's now 50% of the market rate. It's making very little profit but takes no effort on my part. If they leave I plan to sell. I would not pass this discount onto another tenant.

Are you my Landlord? He reduced the rent by €100 a month about 5 years ago, without being asked, and hasn't increased it since. I look after everything in the house.

 

[Purple]

Small Landlords are leaving the market because;

• They never wanted to be landlords but were stuck in negative equity and are now quid's-in and are now taking their capital gain.
• They hate being landlords as it's a hassle and are now taking their capital gain.
• They aren't making any money due to rent controls, their tax treatment and high costs.
• They have been burned by bad tenants which are next to impossible to evict.
• They fear the Shinners and the utterly crazy policies they say they will implement in government.
• They have retired with a big bloated pension and big bloated real estate portfolio due to the insane money printing that's been going on over the last decade or so and now like pigs in muck.

 

[Paul O Mahoney]

Small Landlords are leaving the market because;

• They have retired with a big bloated pension and big bloated real estate portfolio due to the insane money printing that's been going on over the last decade or so and now like pigs in muck.

I've taken out the previous points to focus on this, it literally contradicts your previous points.

Small landlords don't have a " big bloated real estate portfolio " the clue is in the word " small ".

We have 2 properties........and they were our PPrs the first one we kept by choice in 2005 and we viewed this as a prudent investment and something for the children....the other we tried selling for over 2 years but would have lost €250k at least on the banks " valuations"that they extended finance......we rented it out and thankfully we will probably wipe its face now....and will still attract tax

I doubt if any " small landlords " a term I find unintelligent , as it isn't correct, as for " pigs in muck"?.

As one of those pigs, the muck us dry.

 

[bipped]

Small Landlords are leaving the market because;

• They never wanted to be landlords but were stuck in negative equity and are now quid's-in and are now taking their capital gain.
• They hate being landlords as it's a hassle and are now taking their capital gain.
• They aren't making any money due to rent controls, their tax treatment and high costs.
• They have been burned by bad tenants which are next to impossible to evict.
• They fear the Shinners and the utterly crazy policies they say they will implement in government.
• They have retired with a big bloated pension and big bloated real estate portfolio due to the insane money printing that's been going on over the last decade or so and now like pigs in muck.

Small landlords are also leaving because of constant changes to legislation affecting the rental market, it is impossible to keep up with. There is no other sector that has had as many changes to the rules and regulations in the space of five years as the rental market. Small landlords are scared of doing something wrong and ending up with huge fines or being unlucky enough to have a tenant who doesn't pay rent or overholds. Then waiting for years until the rtb handles the dispute. It's just easier to sell up and avoid the grief and hassle.

 

[Purple]

I've taken out the previous points to focus on this, it literally contradicts your previous points.

Small landlords don't have a " big bloated real estate portfolio " the clue is in the word " small ".

We have 2 properties........and they were our PPrs the first one we kept by choice in 2005 and we viewed this as a prudent investment and something for the children....the other we tried selling for over 2 years but would have lost €250k at least on the banks " valuations"that they extended finance......we rented it out and thankfully we will probably wipe its face now....and will still attract tax

I doubt if any " small landlords " a term I find unintelligent , as it isn't correct, as for " pigs in muck"?.

As one of those pigs, the muck us dry.

There are many landlords in your position but there are also plenty with 2-3 properties who now find themselves facing retirement with a decent pension (thanks for QE) and €1.5-€2 million worth of property (also thanks to QE). The muck is wet and warm for those people and fair play to them. We don't celebrate success enough in this country.