Rental Report # 11 - 869 reductions, 98 increases

Irish Property Watch

Looks like the only way to shift a property is lower the price. Who would have thought it!

2,347 properties were let in the last week and the average rent was €1,152.
While the average rent for the properties that remained on the market was 6% higher at €1,226 per month.

It really is a two speed rental market at the moment. I’ve been keeping an eye on one-beds in D7 and D8 as I’ll be looking for one to rent later this summer. A few months back anywhere half-decent was on for 1200+. Yesterday I saw a nice looking place come on for 1000 euros and it was literally snapped up within hours. Decent one-beds priced below 1100 are renting well. Subpar places and those priced above that level are not. I could point to many that have languished for months around the 1100 mark, which would probably rent tomorrow if they were priced around the 950-1000 level.

Just to prove your point I have a couple of apartments in Dublin City that I’ve had since around 1991. Not the most modern by todays standards but still quite ok. I have always pitched the rent around 10% below the market rate and they have never been empty. By doing this you get plenty of enquiries and you can choose a careful tenant.

This is how its meant to be done as far as I am concerned. It sounds like you are along term landlord. Not like the “Stick it up at the daft average price and wait” sort.

One question, do you raise rents on good tennants? Or wait for people to move on before upping the rent for a unit?

We dont raise rents on tenants until the tenancy changes then it is pitched again at around 10% below the market rate. We dont normally have to look for tenants very often, generally when one set of tenants are moving out they recommend us to friends and then the friends take over the tenancy. If you treat people decently then you win in the long run.

Fair play seandoc, you are one of the good guys. We have had our rent raised by 5% each year even though we are model tennants (ie, they never hear from us, we fix the place ourselves never late with rent etc).

Hopefully this route will teach some of the newer landlords how it should be done.