Should you increase rent on yearly review.

beattie I think with interest rate rises on the way you had better steel yourself for rent rises. In my experience property does not lie vacant for long when I am charging less rent than others. Tenants know I charge less and they know it is increased year on year so there is no cloak and dagger stuff. I encourage tenants to check the market a couple of months prior to end of tenancy as it is a free market. When they do they invariably find that there is no financial incentive to do so.
 
I don't see why rent should necessarily rise when interest rates go up. The market rate for rent is determined by supply and demand of rental properties. If interest rates rise do people see either supply or demand being effected?

Perhaps investors will be less likely to buy investment properties if interest rises so supply will be reduced (less demand for properties = house prices going down?). But I see pleanty of vacant properties so I think renters have the stronger hand at this time.

I don't really know how it will play out. What do people think? If interest rates go up will rents rise too?
 
Supply and demand issue I would agree with.
Also I think a key factor is affordability of property for first time buyers.
As interest rates increase I think this may keep people inthe rental sector.
More importantly I think the lending policy of the banks could be a key issue.
Central bank musings recently could signal an imposed tightening of lending policy.
This could be a driver also in the rental market.
I also think first time buyer stuff will see significant price rises as ssia policy maturity coincides.
So I think the demand side could well increase but who is to know.
In answer to your question I nor noone else knows but the potential reasons for general rent increases are multifactorial.
Where do you see the vacant properties?
 
in cork,from what i can see, there are very few rental properties vacant for long.

sudden
 
I'm bemused by this talk of raising rents if interest rates go up. In order for you to succeed with this strategem, you would need *every* landlord in your price bracket to increase at the same time - otherwise your tenants will move on (in an idealised world - obviously some people will have different levels of inertia to moving). The "market rate" for rentals is driven by supply and demand, and not by your level of expenses. Again, as a tenant, I don't care that your expenses have gone up because I have freedom to go a competitor.

I remember a time when you had to queue to be interviewed by a landlord, and when there were perhaps 15/20 other people in this queue. In Dublin at least, that's no longer the case. If I had a landlord come to me in the current market and said he was upping rent by 50/100 euro a month, I'd be off.
 
Absolutely. I remember trying to find a place when I moved to Dublin first 6 years ago and you basically had to know someone. Once when I moved house I agreed to find someone to move into my old room and I got 50 phonecalls and messages in 4 days - and this room was in Clonskeagh!

In contrast, last year when my girlfriend and I were looking for a place, we saw 2 we liked, were offered both and we negotiated the rent down by E100 a month before we eventually signed the lease. The idea that landlords can increase rent in the current climate just because costs are increasing is laughable. Costs have been increasing for the last 4 years but rents have fallen all over the country. The market always dictates prices and there is a plentiful supply of rental properties. If my landlord increases the rent, I'll move.
 
hmmm said:
I remember a time when you had to queue to be interviewed by a landlord, and when there were perhaps 15/20 other people in this queue. In Dublin at least, that's no longer the case.
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God, that brings back a lot of bad memories. I remember looking to house-share in the early/mid 1990s, knowing you hadn't a hope of getting a room in a decent area, coz males tended to want to share with females, & females usually preferred to share with females, & when you went to the house it was always 'sure we'll let you know', & that was the end of that, coz there'd always be 30 to 50 people looking at the room. Not only was it difficult to get a place, your self-confidence also took a bit of a bashing.
 
Firstly, hello to everyone. I have read this site with great interest for awhile and this is my firsy post.
I have been a tennant in dublin for the last 7 years and have also experienced the nightmare that was the "landlords market". The market rate is defined by section 19 of the Private Residential Tenancies Act 2004 as "the rent which a willing tenant not already in occupation would give and a willing landlord would take for the dwelling". There is no provision for the increase in landlords overheads unless the tennant is willing to accept this. Perhaps it is the landlords new to the market with very tight rental yields who feel underpressure to raise rents. If this is the case then I have some sympathy with your case. But I too would leave if a rent increase was imposed on me. And I am sure that if the market swings back tennants will have to obey the market forces once again.
 
Have to agree with the sentiments expressed in the most previous posts, the pendulum has swung back in favour of the tenant and if current building levels continue at the current pace I feel that it still has further to go yet before equilibrium is achieved. I do not care what costs are increasing for the landlord, that is the risk he/she took when making the investment. The market doesn't care what price you paid for your investment, be it in equities or property etc....
 
I suppose the key question is there many properties vacant?
All our properties are rented. We increase rents yearly and have had no vacancy as a result. Maybe we are just lucky although I doubt it. Properties are well maintained and responses to tenant requests are speedy. Our properties are in scenic locations in the countryside. This may have something to do with things as many of our prospective clients are dying to get out of appartments and 3bed semis in large towns in the area. I assume that the renters on this thread are in urban appts?
Where are the areas with large amounts of vacant properties?
Thanks.
 
I my experience the only time there is a geographic cluster is when a new development comes on-line. Otherwise it tends to occur in the middle price bracket of the most common types of units ie two bed apartments anywhere in the city.
 
So newbie are rents dropping for 2beds in city? Can you give us personal experience? Are they consistent with the research on daft.ie?
 
So newbie are rents dropping for 2beds in city? Can you give us personal experience? Are they consistent with the research on daft.ie?
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I have been following the two bed rental market in Dublin over the last year as I plan to move when I graduate in summer and have also been following the Daft quaterly reports, IAVI reports etc. and although they say that the rental market has stopped its decline and stablised... I find statements like these to be more a " positive affirmation" to maintain confidence in investers rather than a solid statistical conculsion.
 
So to be clear you are saying the rental market for 2 beds in dublin is still falling and you would disagree with the findings of the daft research?
Would agree that statistical interpretation is open to variance.
What elements of the stats of this survey do you question?
Is this based on your personal experience or do you have a large enough cohort to make your findings more than just conjecture?
 
Currently 2800 properties advertised on Daft for rent in the Dublin area including 240 in D2 and D6 alone. Admittedly some of these are repeatedly entered. Certainly no shortage of properties going by that.

Asking prices for rents seem to be increasing, particularly for newer developments. You can still get good 2-bed apartments in good developments for around E1200-1300. You'd be mad to agree to pay much more.
 
So to be clear you are saying the rental market for 2 beds in dublin is still falling and you would disagree with the findings of the daft research?
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I never said two beds are still falling. I simply disagree with the commentary that things are looking up for landlords. A plateau in prices can go either of two ways and to assume that it can only go up is misleading.

Would agree that statistical interpretation is open to variance
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If what you mean is statistical variance then i do not see how these values can be interpreted with respect to trends... Simple defintion is that they reflect distribution around a mean.

What elements of the stats of this survey do you question?
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The lack of statistical analysis of negotiated rents, their methodolgy only includes advertised rents.

Is this based on your personal experience or do you have a large enough cohort to make your findings more than just conjecture?
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Personal experience of course....I believe dafts cohort large enough to statistically significant .... And once again I will state that i disagreed with their commentary.
 
I think daft is best research at present.
However I do agreewith you that they have a vested interest to talk up the market as they want landlords to use their services.
The next daft report will be interesting.
Do any of the tenants on this thread hope to buy this year with the proceeds of ssia?
 
As I am single I cannot afford to buy on my own yet. Even though I am on a good salary and good savings. I will reinvest my ssia until I am in a position to buy.
 
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