I think you should meet him some of the way. Explain that 200 is bringing it below mortgage cost etc. He is probably chancing his arm that you will say ok. At least if you bring it down 100 or 120 say you are being resonable and they will hardly go to the hassle of moving for a difference of a few quid. Good Luck.
By market rate do you mean asking prices on Daft? I'm not sure this is the real level of the market. Most people negotiating a rental at the moment will haggle for below the asking rent, often successfully. So it's quite possible that your tenants have actually judged the market correctly. I live in the area and from what I've seen rents in D6 and D4 are down 15-20% on last year, especially for family sized properties. You'll now find yourself competing with potential sellers who have decided to rent instead of sell in the current climate.It's a 3 bed in Ranelagh. The agent quoted the rent on Daft and it was let the next day. I'm just hoping they're not chancing their arm. Market rate appears, at the moment, to have come down to slightly higher than they're looking for me to drop to.
I know it's a difficult time to be a landlord. But I can't really see how the employment status of your tenants is relevant, unless they fail to pay the rent. If they think they can get better value elsewhere, they're entitled to shop around no matter what their financial situation.
You can reduce it so much but tenants have to shoulder the burden of this recession too.
I would offer him say €500 back in January if hes still there and not in arrears, but keep the rent the same.
If you do give a reduction get a new lease signed for a year.
PS They were actually advising tenants on tv yesterday evening not to sign leases at the moment at all on Nationwide on RTE did anyone see that?
Yeah I know a lot of people say that but here in Germany there many orders of magnitude more landlords, even per capita. Most property purchased here is done so by landlords who then rent out the property and it doesn't cause bubbles. The government here also doesn't depend on property transaction taxation for a large portion of its revenue as so few transactions actually take place. They have a sort of council tax instead but this is relatively low compared to say, the UK.Fair point here but a lot of people would say a lot of the problem in this country is landlords having multiple properties (re: the bubble I mean), though not saying you are necessarily one of them. Sorry slightly off point but just commenting...
If tenants keep forcing rents down when they can in fact pay the going rate then lots of landlords who are leveraged (not me thank god) will be forced to evict their tenants and sell up. There will be a reduction in rental property and basic economics tells us rents will increase as supply falls. It's just a question of who will be the last (wo)men standing when rents stabilise and head north again. Tenants should bear that in mind. That's why I like that Ryanair doesn't own Aer Lingus....cometition is good for the consumer, to a point!
Well at least make a counter-agument. If rents a depressed beyond a landlord's mortgage, he'll be forced to sell, fair enough so far?this does not stand up to even the flimsiest of reasoning....
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