The Daft.ie rental report for Quarter 1, 2016 shows rents to be continually rising illustrating an annual average increase of 9.3% nationwide and 11.4% in the capital. This represents an increase in rents for 15 quarters in a row and a total increase of over 33% since mid of 2012. This surely does bring relief to landlords particularly those who purchased a premium boom prices and then proceeded to watch rents drop by nearly 30% after the peak of the property boom in 2007.
The recently published Daft.ie rental report calculated the average yield (annual rent divided by property value) within the national rental market on 1 and 2 bed propertes to be 8.5% and 8.9% respectively (although slightly higher in Dublin) which is unsustainably high considering the availability of risk free investment bonds currently yielding 2.3% thus you have the rapid growth in property sale prices Ireland is currently experiencing especially in the major cities throughout Ireland. According to top economists this high yield signals that property prices have further to increase for an equilibrium to be reached in the rental market. Under the current level of property construction plans in the country it is expected that both rent and sale prices will continue to increase until further supply is put on the market. One should then see a stabilising effect.
Figures 3.1& 3.2 taken from the Q1, 2016 Daft Report illustrate the change in rent and yields throughout Dublin County over the past year.
The PRTB was established in 2004 to operate a national tenancy registration system and provide a mediation and adjudication service for tenancy deputes between tenants and landlords. The board are responsible for the Residential Tenancies Act 2004 which clearly outlines the statutory tenancy obligations of landlords and tenants, including provisions for notice periods, rent reviews, evictions, anti-social behaviour, deposit refunds and Part 4 Tenancy rights.
Landlords are legally required to register tenancies with the PRTB and inform them of any changes to the particulars of the tenancy such as an increase in rent or a sublet to a tenant. There is a fee for each registration but the registration of a tenancy is valid for 4 years provided at least one of the original tenants remains in the property and all new tenant information has been updated with the PRTB. Landlords should be aware that the Finance Acts have been amended so that proof of registration with the PRTB is a condition of eligibility for mortgage interest relief on residential properties.
While Wallace Estates are always on hand to offer advise to all our clients it is advisable that all landlords and tenants read A Quick Guide To The Residential Tenancies Act before taking any action on a tenancy. A number of links for further information on complaints and dispute resolutions are provided to your left. All links transfer to PRTB publications and Wallace Estates holds no responsiblty for the information provided. Visit www.prtb.ie for a full list of publications.
In January 2009 it became compulsory that all properties being rented or sold have a Building Energy Rating Certificate (BER). A BER is similar to the energy label for a household electrical appliance like your fridge. The label has a scale of A-G, A-rated homes are the most energy efficient and G the least efficient. This informs prospective buyers and tenants of the energy efficiency of the property. The Certification is valid for 10 years provided the building is not materially changed.
In addition to examining heating equipment and fuel used the evaluation considers property fabric, construction details, insulation of walls, roofs, floors and windows and how much air is allowed in and out of the property.
Some considerations that can vary you Energy Rating include:
Is your roof properly insulated?
How efficient is your boiler and heating system?
Are you using energy efficient light-bulbs?
Can your boiler be used to heat water only in the Summer months?
How well insulated is your hot water cylinder and piping?
Are your windows and doors fitted with draft stripping?
How do you use your fireplace for secondary heating?
Is your living room an enclosed space?
How well insulated are your exterior walls?
Sustainable Energy Authority of Ireland (SEAI) is in charge of BER legislation and only SEAI approved and registered BER assessors are authorised to carry out a BER assessment on your home. Should you require an assessment on your home please complete the BER Request Form below or call us directly 01-5163107 and Wallace Estates will arrange for a SEAI registered assessor to contact you.
Unit G1, The Steelworks