Thinking of selling a rental property? You should probably get a move on...

AlbacoreA said:
It's a bit like holiday rentals if someone is in there longer than 6 months they could prove tricky to move on. They say it's rare though.
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It occurs to me someone in final year might try to segue straight into it being their workplace accomodation...
 
People often hold apartments though the summer anyway as it's so hard to get them just for the academic year.
 
AlbacoreA said:
People often hold apartments though the summer anyway as it's so hard to get them just for the academic year.
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All I know is that in Limerick 9 months academic year accommodation is quite freely available near UL. Problem is not enough available.
 

If I were in your situation I would be looking at it like this.

1 - Property is renting at 30% below market rate and you cant get to market rate now because you are locked to inflation ore lower. You'll never get it higher than it is now due to inflation. In fact with inflation at 5% and you locked to 2% its getting worse for you every year.

2 - Your market is probably already limited to owner occupiers because of the rent.

3 - There is a supply shortage at the moment so owner occupiers are quite plentiful which may not be the case in a couple of years.

4 - You just never know what new legislation is around the corner to make things worse for you than it already is. Lets face it, not one bit of legislation has made things better.

On balance, if I were in your position I would be handing out notice and putting it the market right now.
Im pretty sure lots of landlords are in that situation too.
 
OMG_OMG said:
2 - Your market is probably already limited to owner occupiers because of the rent.
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ATM there is very strong demand from owner-occupiers and weak to non-existent demand from potential landlords. This means that, lucky for you, being stuck 30% below market rate shouldn't impact your sales price at all.

This situation is unlikely to last forever!
 
elcato said:
Owner occupiers will still be wary of buying with a tenent still in situ while viewing even if notice is given.
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Even if they are not wary of it, there is still a very high chance of the sale not going through if there is a tenant still in it when you are looking.

We were looking at a house a last year. The agent said nothing about it being rented, but when we viewed i got the rental vibe off it. So I asked the agent was it rented and she said it was. I then had to ask was there still a tenancy because she didnt volunteer the info.
She said yes there were 3 sharing and had got their notice, 2 had left and one was still there but she was leaving in a couple of months.
We werent interested then.
Ive kept an eye on that house since as its close to where we live anyway and we were still kinda interested. Its been sale agreed and back on the market since, wait for it, 4 times.
A couple of months I called the agent and asked what is going on with that house as we were still interested. I had to ask her directly about the tenant and She came clean then and said the tenant would not move out and still hasnt moved out and thats why the sale is dragging on.
I then asked her when is the tenant leaving and she said a couple of months again.
Lesson is not to ever go sale agreed on a former rental property unless the house is vacant . And directly ask the agent, because they wont volunteer the info.
 
OMG_OMG said:
Lesson is not to ever go sale agreed on a former rental property unless the house is vacant .
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I think that's a bit extreme.

I went sale agreed on a house with tenants present (they were even sitting there watching TV during the viewings!).

It depends on your own risk tolerance and circumstances. We weren't in a chain and if it had fallen through it wouldn't have been the end of the world.
 

Yes it can work out fine. But i would rather not deal with the not insignificant chance of it not working out myself. I think a lot more people would prefer to be concentrating on other properties without a tenant in the mix, than those who would be happy to proceed with where tenant hasnt moved out yet though. And that is not good for a seller.
 
@OMG_OMG

I think vendors can miss the big picture with tenants who won't move out in the context of a house sale.

€5k in cash would shift most people and it's cheaper than having your house hanging on the market for months on end.
 
NoRegretsCoyote said:
@OMG_OMG

I think vendors can miss the big picture with tenants who won't move out in the context of a house sale.

€5k in cash would shift most people and it's cheaper than having your house hanging on the market for months on end.
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You woukd not want a €5k payment to become standard 'goodbye money' plus return of deposit or a few months arrears.

Legislation needs to be moved to address over staying. It can't be just left to the owner/vendor to throw money at the problem.

In progressing the need for a stable rental market, introducing a 3 month deposit would perhaps offer more security to owners and make it less attractive for tenants to refuse to move out for a sale. If they had more money on the table/at risk hey may be quicker to cooperate.

I plan to sell my rentals in 2022. For some, I have to give the max notice so it may be 2023 when I have concluded all. The return is good but the uncertainty on legislation makes it less attractive or with considerable risk of future downside.
 
NoRegretsCoyote said:
@OMG_OMG

I think vendors can miss the big picture with tenants who won't move out in the context of a house sale.

€5k in cash would shift most people and it's cheaper than having your house hanging on the market for months on end.
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The big picture though is that €5k would be a bargain to get rid of an overholding tenant. And they know its worth a lot more than that to them to overhold. So lets imagine the price now is €5k, next year it will be €10k and so on. Slippery slope, and so sad that you have to pay people to gice you back your property. Its like buying your lunch back off the bully in school, with the teacher looking on and not doing anything about it.
 
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Luternau said:
In progressing the need for a stable rental market, introducing a 3 month deposit would perhaps offer more security to owners and make it less attractive for tenants to refuse to move out for a sale.
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Under legislation introduced earlier this year, I’m afraid a landlord cannot ask for a security deposit in excess of one month’s rent.

The fact that it can take over 2 years to legally evict an overholding tenant means that residential letting is a very high risk business in Ireland.
 
Thanks for your advice above, I am so confused reading legislation, I never know if I am reading the latest information, I just read the following info on Citizens Information -

The Residential Tenancies (Amendment) (No. 2) Act 2021 is bringing in tenancies of unlimited duration. This means when you have rented somewhere for 6 months, you then have the right to stay in that accommodation indefinitely (no end date), unless the landlord wants to terminate your tenancy for one of the allowed reasons. Tenancies of unlimited duration will apply to all new tenancies created from 11 June 2022. The legislation also outlines transitional measures for how existing tenancies will move to being tenancies of unlimited duration.

Does this mean that even though a tenancy commenced before the 11th of June 22, the tenancy will be transitioned over to become an Indefinite Tenancy so at the end of 6 yrs I cannot terminate the tenancy, Is that right?

Also I see that you will be allowed to terminate on allowed reasons, I really don't want to sell if I can avoid it.
My son will be going to college in 2025, but what if he doesn't get a college place in that city and as a result then I can no longer terminate the tenancy (because it looks like it will be immediate family members only).

Is my only other option either sell with the tenants in situ at this point, if so then yes I am probably best of doing it now. This is all quite confusing and nothing seems to be concrete at the moment.
 
If your tenants are in before June 11th 2022 then you can still end the tenancy whenever. Say the tenancy started on June 10th 2022. Then until 9th June 2028 the current rules still apply. That's if the same tenants remain in the house. If a tenancy starts on or after June 11th 2022 then after six months it becomes a tenancy if indefinite duration.

In which case, you can only end a tenancy if u want to sell the property or for personal use etc. That's the rules currently. If Sinn Fein had their way they want or at least they say the government should be saying after six months, the landlord cannot evict a tenant for any reasonable n whatsoever. In which case, if you did want to sell your house, you could only sell it to another investor who wants a buy to let. So limiting your potential market like that would have a detrimental effect on the price of the property.

And there's a mystery as to why rents are rocketing and landlords are running the hell out if the marketplace as quickly as possible.
 
Hi Folks
I have been watching this thread for a while.
I have an apartment in a SSAP. It is in a nice quiet, well run complex with a mix of rented and owner occupied properties.
Rent is set around 12% below current rents there and is around 5% nett return on the value of the property.
It is vacant at the moment and in very good condition and fully equiped ready for letting or sale.
It would be desirable to owner occupiers were it is situated and with the level at which the complex is run.
I am 65 very soon.
The plan for it was to retire at 66 and take the 4% pension from the rent and keep the property.
My total SSAP fund would be around €500k including the property value.
With the new legislation as outlined by PB202 above, if you were in my shoes, what would you do?
 
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