Letting a property in Dublin, Cork or anywhere else in Ireland? If you are, then you should read on to know what to expect about the rental market this 2019.
Demand for apartments or rental homes is still going to be high this 2019. In Dublin alone, apartment living grew by as much as 90% since 2002. Experts believe that the figures are not going down any time soon, especially with the growing popularity of this type of housing.
Reports suggest that one of the primary drivers for this is the 25 to 44 age group. Young professionals just starting their career and first-time home buyers who still cannot get mortgage comprise this cohort. Opting to delay buying a house, this people see this model – renting a house – as the most logical or appealing alternative.
There is still a shortage in rental properties all over Ireland. The country’s rental property supply in November 2018 was just around 3,000. This was a 4.5% decline from the figures posted in November 2017.
So, what does this mean for rental property owners like you? With the supply shortage, this means that you have fewer competitors. Moreover, with the demand high, finding tenants should not be a problem. Your property may even be snatched quickly if it is in the lower end of the market, price-wise. Majority of would-be tenants are searching for affordable rental properties. However, houses and apartments for let in this price range are scarce, making up just 17% of the overall supply in December 2018.
Rents are skyrocketing in various parts of the country. As of September last year, rental fees in Ireland increased by an average of 11%. Meanwhile, the monthly rate was €590 more than in 2011, the year when rents were at their lowest. This trend is expected to continue, especially with demand steadily rising and supply lagging behind.
In Dublin, rental fees are already in the double-digits, exceeding the rates 10 years ago by as much as 36%. Even other cities are seeing an unprecedented rise in rental fees, i.e., Limerick and Waterford posted an increase of 20.3% and 19.7% respectively in 2018 as compared to 2017.
So, whether you are planning to let a property in Dublin 12, Rathgar or outside the capital, you can expect to get a good fee. A word of caution though, the rising rents does not automatically equate to better financial returns for landlords like you. Maintenance costs and regulations like rent controls and higher taxation can stand in your way of generating a decent positive cash flow from this venture. Hence, it is highly important that you take these things into consideration when setting your rental fees.
By June 2019, the so-called Airbnb laws are going to be implemented. Under these regulations, those renting out their houses are required to register. Moreover, short-term letting of a property, which isn’t the landlord’s primary residence, via Airbnb and other platforms is no longer going to be allowed without a special planning permission. However, the chance of such arrangement getting approved is low, especially if the property is situated in so-called high demand areas.
Failure to comply with these new regulations may result in a criminal conviction. So, if you are currently observing this set-up – letting a second house on a short-term basis, you need to read and understand the laws. Better yet, you have to start looking for other alternatives to help you in this endeavour. One thing you can do is to work with a letting agent to find excellent tenants and set the best rental rate for your house.
Generally, 2019 is a good time to let a property. In fact, it is the best time to put your rental home in the market since supply is expected to pick up by 2020 – which means competition can become cutthroat next year. Just see to it that you consult a professional property manager in determining the rental value of your house to ensure that this venture generates profits.
Letting a property in Ireland this 2019? Our letting agents can help you find the best tenants, set the best rental rates and even manage your property. Call us today at 014959020!