Posts

The Challenges Facing Landlords

/in

Tenancy Terminator Will be Back

We have spoken numerous times in the past about the many challenges facing the housing situation in Ireland at present. From increasing rental and purchase costs, to more stringent rules and regulations, it has undoubtedly become more and more difficult to access appropriate housing in Ireland in recent years. Something we have not touched on quite as much however, are the challenges facing Landlords in these modern times. Changing rental legislation has a direct and serious effect on these forms of business owners, and with new legislation having come into effect as recently as May 31st, there may be a lot to that Landlords may not be aware of, so we have decided to dedicate the coming weeks to the unpacking of this new information.

The Residential Tenancies (Amendment) Act 2019 was officially signed into law on May 31st 2019 and introduced many significant changes to the rental sector which have already come into effect, as well as others which will follow over the coming months.

Termination Notice Changes (4th June 2019):

Under new legislation there will now be new obligations for landlords if they end a tenancy for the purposes of sale, a family member living in the property, change of use or renovations. In the event of the property being used to house family, the landlord must offer the property back to the tenant for a period of 12 months if it becomes vacant again, a change from the previous requirement of 6 months.

Selling:

Similarly, should a property be for sale, not sell and become vacant again the period is increased to 12 months that it must be offered back to the tenant if vacant. A landlord now has 9 months from the termination date to sell the property. A statutory notice of intent to sell will also be required.

Renovations:

There will also be more stringent rules in place for notice of renovations and the landlord must provide further information on the notice of termination of the tenancy including:

  • Planning permission if required.
  • Contractor details.
  • Start date and duration of the works.
  • Renovations cannot proceed while the dwelling is occupied.
  • The property must now also be offered back to the original tenant on completion of the work.

Change of Use:

In the event of a landlord wishing to change the use of a property for example from residential to commercial the notice of termination must include the following:

  • A copy of planning permission (if required).
  • A statement of the new intended use.
  • Details of work to be carried out.
  • The name and details of the contractor.
  • Dates and duration of the works.

Once again, the landlord is also required to offer the property back to the original tenant if it becomes available for rent again.

We hope that this information is of use to you, and we will continue this series of posts over the coming weeks in order to ensure that any of our clients and friends in the rental sector are fully informed of these changes. Should you have any queries or concerns on any business or financial matters, please don’t hesitate to contact us here at EcovisDCA, where we are always happy to help.

Knock Knock Knocking on Overpriced Doors

/in

We have spoken many times in recent years about the difficulties faced by prospective home owners, whether they be first time buyers or otherwise. The mortgage rules currently in place in Ireland can no longer truly be called ‘new’, and are unlikely to be changed drastically but continue to place heavy restrictions on prospective buyers. Recent reports suggest that it may in fact be keeping many prospective buyers off the property ladder permanently, if not delaying the process by as much as a decade.

A large part of the issue seems to exist independently from the mortgage rules, while house prices have risen exponentially in recent years (and are forecast to continue to do so for at least three more years with the possibility of reaching a housing bubble due to lack of supply to meet demand), the cost of renting has followed suit, meaning that many prospective buyers find it increasingly difficult to save the required 10% deposit due to both rental costs and the overall cost of the house they wish to purchase placing increased pressure on the hopeful buyer. A recent report by Threshold has found that of those surveyed, less than a third are happy to be renting. 71% of those surveyed are currently renting due to not being able to afford a mortgage in the current market. Similarly, it was found that 96% of tenants have found it incredibly difficult to find appropriate and affordable rental accommodation due to the increasing costs which often see families spending between one third and one half of their take home pay on rent. Many tenants have been renting for in excess of five years due to the lack of other options available to them.

Chair of Threshold Dr. Aideen Hayden has been quoted as saying the following about the current rental crisis:

“A home is not just where you live, it is a place of sanctuary, offering protection from the stresses and strains of daily living. The current insecurity for tenants in the private rented sector means that they can’t look ahead and plan, they can’t put down roots.”

Whilst demand for housing strongly outweighs supply currently, it has recently been speculated by Savills that the trend in supply is turning upwards which may lead to a more balanced market by 2021, meaning that there is still space for some good news in the future for prospective buyers.

Should you require any assistance or guidance on any business or personal finance matters, please do not hesitate to contact us here at EcovisDCA where we are always happy to help.