Tesco-isation of Rental Market. Small Landlords Leave Market - In One Area 45% Sales were Rentals.

YesSireeeBob

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Irish Times

So between 12k and 14k landlords have left the sector, more landlords are using AirBnB - it's time to start treating landlords better.
Remove the rental caps, which really screwed the good landlords who kept rents low.
Lower taxes for 1 year + rentals and raises taxes for AirBnB rentals (in non-private houses).
Speed up the PRTB for non-payment of rent.

Pat at one stage had about 80 tenants on his books in 20 properties around Dublin 6 and Dublin 1. “I wouldn’t house one now,” he says. “Not one.”

“Tesco-isation” of the sector. “What I mean by that is, the small guy who was providing accommodation was put out of business while the bigger players came in.

“These big American companies are coming in and they have no problem with compliance and all the registration and so forth. It’s easy for them because they have the scale, but, for the small guy, it’s murderous.

“There’s never been a bigger demand in history, and yet everyone is running for the exit doors. The Government was telling us what we were allowed to earn. That was the writing on the wall. It’s time to go when that starts happening.”

He held on to just one or two that he now uses for short-term lets, much the same as the Airbnb model. “I get a lot of students; people on contract work; people who are coming in for maybe a month or six months or something like that.
Stacked deck

“Fair enough, you only get a month here and a month there, but at least you get your property back. You can sell it if you want. You have the comfort of knowing nobody is in it rent free and nobody is wrecking the place.”

“We got to 50 per cent of our branches, and everyone was giving us nearly the same answer, which was that about 20 per cent of the stock they were selling was buy-to-let properties,” he says.

“In Dublin, it was as high as 27 per cent. In our Phibsborough office, on that particular date in March, 45 per cent of all the houses we were selling were buy-to-lets. We thought that was very significant.

“Airbnb has a huge influence on the sector. There’s a particular development in the docklands where there are more than 40 Airbnb units. Those units would initially have been standard lettings. That is again reducing the supply into the sector.”
 


galteeman

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Intersting.
A mate of mine had 3 places off Patrick St. let out for very good money.
He put 1 of them on daft.ie about a year ago and he got contacted by this agent guy who does airbnb rentals.
The guy offered him way more than he was looking for from regular tenants and this guy will take care of all maintenance of the property, pays the rent on time and never gives any trouble.
My friend was so happy with the big increase in rent that he gave notice to the other 2 tenants to quit and now has all 3 places with the airbnb guy and gets crazy money.
I was under the impression that airbnb rentals were deemed illegal because of planning regs, am I wrong?
 

Man or Mouse

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Intersting.
A mate of mine had 3 places off Patrick St. let out for very good money.
He put 1 of them on daft.ie about a year ago and he got contacted by this agent guy who does airbnb rentals.
The guy offered him way more than he was looking for from regular tenants and this guy will take care of all maintenance of the property, pays the rent on time and never gives any trouble.
My friend was so happy with the big increase in rent that he gave notice to the other 2 tenants to quit and now has all 3 places with the airbnb guy and gets crazy money.
I was under the impression that airbnb rentals were deemed illegal because of planning regs, am I wrong?
Not sure whether you are wrong or not, but again, it looks like the law of unintended consequences has kicked in whereas most commentators on here would prefer to kick the government.
 

mr_anderson

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Just build.

If you increase supply, prices & rents will fall.

Those looking to buy can do so without strangling themselves with an insane mortgage.
Those renting can also afford to save for a deposit.
Nobody will care about landlords renting to airbnb, normal tenants or hookers.

Stop trying to address the symptoms of under supply and tackle the actual problem.
 

mr_anderson

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I was under the impression that airbnb rentals were deemed illegal because of planning regs, am I wrong?

Legally you are not allowed to do it without the right planning.
In actuality, the government are leaving it up to the management companies.
So the government won't stop you from airbnb'ing, but if the management company say 'stop', then you must.

The reason the government is fudging this law is because airbnb's HQ is in Dublin.
They can hardly say 'Thanks for the jobs & taxes, but fúck off if you think we're going to allow it here'.
 

Voluntary

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As I see it one of the biggest issues is that half of the rent collected by private landlords goes to the exchequer. This is even a bigger issue than the rent caps. In other countries landlords are happy with 4% ROI, in Ireland private landlord needs to make 8% to keep 4% in pocket. Taxes are killing private rental market big time.

And what government do with these taxes? Renters are charged to the pain point only to let government use this money to build social housing to distribute further. It's a crazy loop with no escape.
 

smitchy2

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Im sick of landlords looking for sympathy. Rents have exploded by 50% on the last few years. They are not all generous landlords who keep rents low.

If you are earning over 40k a year, yes you will get taxed 50% on the extra income over that. So does every paye worker!

Air bnb is obviously impacting the market. There should be a temporary ban in irish cities until new builds come on stream in 2/3 years.
 

galteeman

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Legally you are not allowed to do it without the right planning.
In actuality, the government are leaving it up to the management companies.
So the government won't stop you from airbnb'ing, but if the management company say 'stop', then you must.

The reason the government is fudging this law is because airbnb's HQ is in Dublin.
They can hardly say 'Thanks for the jobs & taxes, but fúck off if you think we're going to allow it here'.
Do you know what the situation is with private houses? Wouldn't it be up to the local authority to enforce planning regs?
 

Voluntary

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Give private landlords 2 options to pay they taxes:

1. Income tax (as currently) with option to deduct expenses
2. 8.5% fixed tax on the rent collected, no option to deduct expenses.

Such system works well abroad and small private landlords often opt for the second option, while bigger players who can use their expenses can go with the option 1
 

Voluntary

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Im sick of landlords looking for sympathy. Rents have exploded by 50% on the last few years.

This 50% is exactly what the government takes. Why targeting anger against landlords when the State also increased their take by 50% ?
Every time landlord increases the rent the State increases it too by the same amount.
 

Voluntary

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Do you know what the situation is with private houses? Wouldn't it be up to the local authority to enforce planning regs?
Local authorities show too much of NIMBY factor. Too much opposition, LAs like they're houses to get more and more expensive. They enjoy that.
 

galteeman

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Local authorities show too much of NIMBY factor. Too much opposition, LAs like they're houses to get more and more expensive. They enjoy that.
Don't they get the property tax which is based on the value?
 

galteeman

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This 50% is exactly what the government takes. Why targeting anger against landlords when the State also increased their take by 50% ?
Every time landlord increases the rent the State increases it too by the same amount.
You know the state pays half the rent paid in the country with all the people on benefits so it's going around in a circle.
 

mr_anderson

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Do you know what the situation is with private houses? Wouldn't it be up to the local authority to enforce planning regs?

Don't quote me on this, but I think it's fine inside your own home, where you rent a room.
The problem lies with renting an entire property.

I'd always advise people to talk to an accountant with regards to the tax implications though.
 

Voluntary

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Don't they get the property tax which is based on the value?
And so what? LAs are made of multi-home owners in the area who gain more by pumping their house values than anything else. LAs are driven by self-interest lobbies who put their own personal interest before the common good.
 

cobhguy

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Give private landlords 2 options to pay they taxes:

1. Income tax (as currently) with option to deduct expenses
2. 8.5% fixed tax on the rent collected, no option to deduct expenses.

Such system works well abroad and small private landlords often opt for the second option, while bigger players who can use their expenses can go with the option 1
Why not just register as a company.
 

storybud1

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You know the state pays half the rent paid in the country with all the people on benefits so it's going around in a circle.
And the penny drops, well said, I will not be around for the Tsunami of even more social housing coming to my town as even more rubbish (no offence to the decent people in social housing) is pushed in to sit on the dole for life or watch even more hijabs just appear one morning from the middle east.

There is one absolute singe solution to social housing, put as many as possible next door to the virtue signallers, , first next door to Zappone (not Roscommon 100 miles away) / Labour party /Jarry and then all the main leaders of our political parties, no matter, and I mean no matter the cost, then the planners in the Councils (KaCHING $$$$ brown envelopes Redmond) and then the councillors .

seek them out,all the "diversity" + socialist freaks that live in ultra white addresses in D4 , start building receptions centres and social housing for settled travellers in their back Gardens if needed, sure you have to utterly break your boll1x laughing when you actually see where the Geldofs/Sutherlands/Mary Lou's etc actually live ? They want it so what is the harm in giving it to them ????

I'd gladly pay more taxes to see it happening, refugees flooding into Sutherlands gated mansion in Marbella, or reception centres in some of the acres Geldof has out the back in his Country pile mansion or a few modular homes in Mary Lou's front garden in her million euro house in Castleknock,, sickening fookers that take the p1ss out of working class Irish people and get away with it.
 


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