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Irish Btl Seeks Advice On Raising The Rents

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Guest Winners and Losers

is this nominal or real rents ?

im confused.

:lol::lol:

But will it still pay for the 'equity' he has in the property????

Go on TTRTR, you know you love it.

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LOL

Sounds like one of those really proffesional BTLers with his finger on the pulse. Maybe just needs to clarify a few legal points, and maybe a bit of advice on running a business and maybe a bit on simple economics, but he'll make £1,000s £100,000s £millions

Hang on, what if the tennant doesnt want to pay more and moves out?

I import goods from the far east and yes I have minimum margins, but this does not dictate my prices. My prices are dictated by market forces (what people are willing to pay) If my costs go up I can and have tried to put up prices, but if my opposition drops theirs i am in trouble. In my business if your too hot you get out of the kitchen, it is no different for the property rental sector, if there is a higher supply and prices are dropping no matter what your costs are doing you have no choice. Because your costs are high your opposition (and there is plenty in the BTL market) may be not ie no mortgage, and you will go under, eventually.

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Another muppet BTL landlord who doesn't understand the market. :rolleyes:

Rental yields are below 2% in many areas of Dublin, and that is a simple supply and demand story. If landlords could charge more, they would already. But they can't, it is as simple as that.

If my landlord tried to up the rent I would leave, and move around the corner. I'm already paying much LESS than the previous tenant.

It sometimes seems like half of Dublin is up for rent and most of it empty anyway (my place was for six months before I moved in), and the builders just keep adding to supply. :)

My advice to your muppet is sell. It's a tenants market out there.

Edited by Flash

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This is precisely why credit should be IQ tested. Can they really see all those landlords putting up rents by Euro55, and same again each time the interest rates go up when there are so many empty properties and newbuilds in Dublin already..... - another muppet assuming that tenants are a) readily available and B) will pay you what you want as rent.....

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A landlord (IMHO) is a price taker when it comes to rents. He is competing against other landlords who have bought at different times and therefore are able to set rents that aren't necessarily linked directly to mortgage payments.

This is not a business where you can take increased input costs (Mortgage) and then pass on to consumer (tenant) if you try that approach you end up with voids and losses.

Seen it in my neck of the woods - funnier still when voids start they try and up the rent to claw back lost rent through void period - priceless!!!!

If my landlord tried this I would up and move right away (recently reduced my monthly rent through negotioation by over 10% BTW).

SH

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Guest Winners and Losers

He is competing against other landlords who have bought at different times and therefore are able to set rents that aren't necessarily linked directly to mortgage payments.

This is an excellent, often missed, point.

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Guest Winners and Losers

Thank you WAL

Oh and by the way TTRTR the Irish poster is a lass (Boozykate username should be a hint!)

A

:lol:

In TTRTR's world only MEN are Landlords. It's a generational thing that us youngsters wouldn't understand.

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A landlord (IMHO) is a price taker when it comes to rents. He is competing against other landlords who have bought at different times and therefore are able to set rents that aren't necessarily linked directly to mortgage payments.

I agree with WAL that this is a very interesting and pertinant point. Not all landlords are recent BTLs, and hence the playing field is far, far, from level. Recent BTLs will have great difficulty competing with landlords who purchased some time ago if there is a squeeze.

If my landlord told me that he was going to put up the rents because of a mortgage increase, I'd be reaching for the property section. It would be a bad precedent that would most probably start getting worse.

Billy Shears

Edited by BillyShears

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Not all landlords are recent BTLs, and hence the playing field is far, far, from level.

Indeed: as far as I'm aware my landlord has no mortgage, so they could probably cut my rent by 90% before they were making a loss.

If my landlord told me that he was going to put up the rents because of a mortgage increase, I'd be reaching for the property section.

Definitely: that seems like a sure sign of an amateur. When I moved I made sure that the place I moved to hadn't been sold in the last five years, because I didn't want to risk the bailiffs turning up to chuck me out because the landlord couldn't pay their mortgage. Of course they might have MEW-ed to the hilt, but I think that's unlikely.

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The mechanics of this have been explained to TTRTR many times. I think it is a comfort blanket for him to believe he can put up rents if he needs to. The alternative is bankruptcy, and he can't cope with that prospect. :rolleyes:

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:D

A man after my own heart.....

But TTRTT,did you dee the first reply to the thread?

I think you should sell up, your going to be writing these letters every three months by the sounds of things.

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The mechanics of this have been explained to TTRTR many times. I think it is a comfort blanket for him to believe he can put up rents if he needs to. The alternative is bankruptcy, and he can't cope with that prospect. :rolleyes:

If TTRTR has all those properties in Wandsworth then he could relatively easily sell them and bank the money which would be a big wad of profit. So if prices crash and he loses a whole wad of paper wealth, he would have no excuse. That he doesn't sell right here right now says, that like me not buying a house right here right now, that he's firm in his beliefs about the future of the property market. Just a heads up that it's not a choice between being able to raise rents at will or bankruptcy. Unless he moves too slowly.

Billy Shears

Edited by BillyShears

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IMO if rents do rise significantly, people move in together and share more or move back to there parents, reducing demand.. People can only pay what they can afford.

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Thank you WAL

Oh and by the way TTRTR the Irish poster is a lass (Boozykate username should be a hint!)

A

The name is BoozyBabe, & what exactly is your problem with what I want to do????

Don't take one stupid line from some idiots post & assume you know all about my story.

What would you like to know, then you can give me real advice.

Oh, & btw:- there's more places in Ireland than Dublin (though I know ye find that hard to believe!! :rolleyes: )

My property is nowhere near there!!!

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..nope...hes not coming back to this post.

i suspect a lunchtime rush on the chicken tikka & nan is to blame....

Don't take one stupid line from some idiots post & assume you know all about my story.

B)

Edited by right_freds_dead

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The name is BoozyBabe, & what exactly is your problem with what I want to do????

Don't take one stupid line from some idiots post & assume you know all about my story.

What would you like to know, then you can give me real advice.

Oh, & btw:- there's more places in Ireland than Dublin (though I know ye find that hard to believe!! :rolleyes: )

My property is nowhere near there!!!

How about "be careful when you try and put the rent up in case you lose your tenant."

As a question for you, suppose that you discuss raising the rent with the tenant, and the tenant says that they will move out if you put the rent up. What do you do then?

Billy Shears

Edited by BillyShears

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A landlord (IMHO) is a price taker when it comes to rents. He is competing against other landlords who have bought at different times and therefore are able to set rents that aren't necessarily linked directly to mortgage payments.

This is not a business where you can take increased input costs (Mortgage) and then pass on to consumer (tenant) if you try that approach you end up with voids and losses.

Seen it in my neck of the woods - funnier still when voids start they try and up the rent to claw back lost rent through void period - priceless!!!!

If my landlord tried this I would up and move right away (recently reduced my monthly rent through negotioation by over 10% BTW).

Returning to this post. Another consequence of highly leveraged extreme BTL'ers is that they are the ones most likely to have increased costs if interest rates go up. But they're also the ones who can least afford voids because of the meaty mortgage payments. Not necessarily that nice a place to be in a squeeze.

Billy Shears

Edited by BillyShears

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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