Is it worth becoming a landlord in 2021?


#1

Is it worth becoming a landlord in 2021?

Here I’m talking about someone who buys a house with a mortgage and rents it out

Pros:

-all time high rents

-BTL mortgage paid by tenants

-BTL mortgage interest deductible from rental profit

Cons:

-41% Income Tax, 4% PRSI, 7% USC payable so 51% on any profit

-BTL mortgage to be repaid

-BTL mortgage rates higher than PPR rates

-almost zero profit per annum until mortgage repaid after paying BTL mortgage and 51% tax

-evicting a tenant is becoming harder every year

-recent moratorium on evictions during Covid even if tenant stops paying rent

-if tenant stops paying rent then going through PRTB takes 1+ year to resolve

-landlords have become pariahs in recent times


#2

A lot of it is down to the purchase price.

I bought a mixed unit about 7 years ago.
I had hoped to get 1000/month for the apartment.
I had 3 tenants in 12 months which was obviously a pain in the neck.
Then I opted for a HAPs tenant and now getting a reliable €1600 that is unlikely to move out anytime soon.

I couldn’t ask a young worker for such a rent.


#3

Everything fcked about the property markeesh right there. Everything.


#4

I’ll not argue with that. It’s ridiculous.

If you were a landlord would you have done anything different?

Separately, the commercial units market is quite competitive but my tenants have never changed and appear to be doing plenty of trade to be comfortable. Obviously Covid closed a few for a lot of last year but I just said if you’re not open don’t pay. Demanding payment may have closed the business but they’ve been reliable tenants up to then.


#5

The Rental Sector in Ireland 2021

https://www.cso.ie/en/csolatestnews/presspages/2021/therentalsectorinireland2021/

The proportion of landlords under the age of 45 decreased from 35% in 2017 to just over 24% in 2021
  • The most common BER rating for rental properties is C while an A rating is the least common, although the proportion of rental properties with an A rating is increasing
  • The median size of rental properties is smallest in Dublin City and largest in Roscommon
  • More than half (50.5%) of landlords in 2019 had a rental income of less than €10,000
  • The most common sector of employment for landlords is Human Health & Social Work Activities
  • Rent as a proportion of total disposable income is highest for tenants living in and around Dublin with 36% of tenants living in Dublin City spending more than 35% of their disposable income on rent in 2019
  • Employee income is the primary source of income for 71% of tenants