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ILLEGAL EVICTIONS, SEVERE overcrowding, landlords withholding deposits and unaffordable rent increases were some of the main issues dealt with by housing charity Threshold last year.
The charity launched its 2016 annual report today, revealing that it took over 71,000 calls from concerned people throughout the year – a significant increase on the previous year.
The charity is an advice and advocacy service that works mostly with renters to try to help them deal with landlords and help them stay in their homes.
Of the calls received last year, almost a third (29%) were in relation to situations where people were at risk of losing their homes.
Tenancy terminations and substandard accommodation (14% each of all calls) were the most common issues raised.
The third most common issue was people ringing looking for accommodation. Threshold said that this pointed to the reduced availability of places to rent.
A total of 37% of people who contacted the charity were in receipt of some form of social welfare payment, while 44% of callers were families with children.
Speaking at the launch of the report, Threshold chair Dr Aideen Hayden said that more protections were needed for tenants.
“We are in a state of crisis and we are particularly in a state of crisis in relation to the rental sector,” said Hayden.
“Individuals and families find themselves in dire situations as competition for homes at the bottom end of the rented market has led to greater poverty and the emergence of overcrowding and falling standards,” she said.
Tenancy protection
One of Threshold’s key services is the tenancy protection service, which was expanded in 2016 as a result of the worsening housing crisis.
Threshold said that it helped over 3,900 callers through this service last year. It also said that 2,858 children were able to remain in their homes as a result of the TPS.
Also speaking at the launch Minister of State at the Department of Housing Damien English said that the government was working hard to alleviate housing issues and homelessness.
He said funding had increased to tackle housing issues, but that it would take time before the problem alleviated.
You can access the full Threshold annual report here
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Non payment of rent, wrecking the house, problems with eviction and huge tax bills. Just some of the issues facing landlords but let’s not mention those.
@Nick Allen: by a tiny, tiny minority.
As for “huge tax bills” you have to making huge rental profits so as to incur a large income tax liability on rent.
@Fiona deFreyne:
You don’t have to be making huge profits. For the small landlord a house investment is often done for pension purposes and the rental income is on top of their salary. So all income after allowable expenses is subject to taxes at the marginal rate, on top of this there is property tax and then if the house is sold there is CGT as the house is not the landlords home.
@Fiona deFreyne: that’s where your wrong all income from rent is taxable. Very few landlords making any money from renting out a property. But peope dont want to hear that . Its always the bad landlords , one big media spin to hide behind. The government can buy me out of my apartment if they wish all it does is cause hardship every year.
@tomas o beag: highest yields in Ireland and plenty of offsets.
Income tax is not paid on rent. It is paid on rental profits.
@Fiona deFreyne: do your research before you make statements
@tomas o beag: take your own advice. You are wrong.
@Fiona deFreyne: if it’s so easy why don’t you become a landlord?
@Fiona deFreyne: When I started in the landlord game tax on rental income was 40%. No PRSI. No USC. The tenant could also claim tax back at the lower rate of 20%. So if I charged 1200 a month I got 14400 a year. Lets say I had tax deductibile expenses of 4400. I was then charged 40% on 10000 so the government got 4000 in tax. The tenant claimed their 20% rebate so they got 2880 back. The governmet’s total tax take from the rental is 4000 – 2880 = 1120. Fast forward to the present.Tenanats can’t claim rent back on thier taxes and landlords are taxed at 51%.Using the same figures above the Government ends up with a total of 5100 in taxes.
But its the landlord who takes all the risk who is the bogeyman. I would much rather pay less in tax than increase my tenants rent to ultimately end up with the same income.
@Nick Allen: No mention in Thresholds report of them illegally advising tenants to over hold. Its incredible this organisation gets Government funding
@Nick Allen: Good man Nick, turn the issue back on those who are helpless to help themselves.
The neoliberal policies pushed by the neoliberal government of FG are directly responsible for the rental and housing crisis.
Not the ones you mention, or that Leo loves to spin.
@Pierre Lecake:
Don’t forget property tax too
@Dave Doyle:
The problem is that in order to find a solution to a problem you need to have all stakeholders in agreement with the way forward. Just looking at tenants or just looking at landlords or just looking at the tax take will fail
@Fiona deFreyne: I’m making a loss on my rental and still paying tax. Every penny you get is seen as rental income regardless whether it is profit or not.
@Fiona deFreyne: hats simply not true it done on rent not rental profits
@Is Mise jay: Tony hasn’t a clue on this subject. Has twice now stated wholly inaccurate information
@Alan Fitzgerald: if your making a loss on a property you rent out would it not be better to sell? At least then you won’t be making a loss every month. Or even better yet, do a rent to buy with current tenents if they would agree to it. Why put yourself at a loss?
@Fiona deFreyne: Thats not true. all the rent is liable to income tax., it can be offset by allowable expenses but tax is due on everything. mortgae repayments are not allowable expense, but the interest element is. I am an accidental landlord. I receive less rent than the mortgage payments regardless of that I still am liable for tax on all of the rent as income tax. Unless I can offset it. Saying that, on the other side I am also a tenant, and can see how badly some landlords treat their tenants
@Sam Glynn:
Accidental landlords may not be able to sell, they may have negative equity. Also there is a significant cost to selling a property with estate agent fees, solicitor fees, paying property tax for the full year in advance, cleaning the house / tarting it up for sale. Also, you may have sitting tenants and then you may not be able to leave the house vacant while the sale process is going through,
@Nick Allen: To hell with dodgy landlords first and foremeost they are NOT victims will never be victims, they are a vile odious class of business people.
@Alan Fitzgerald: Alan, you pay tax on rental profit only not on your turnover. Your mortgage payment may be more then rent received but that doesn’t mean you are making a loss. On the profit, income tax usc etc is payable which is unfair. It should be treated as a standalone business for tax purposes.
@Nick Allen: doesn’t need to be mentioned as there isn’t a tenant crisis Nick. The problem is that there isn’t enough houses you see, Google it there, surprised you haven’t heard of it.
@Fiona deFreyne: You never miss an article on renting to throw in an anti-landlord comment. I’m guessing that you rent and that you had a bad experience with a landlord in the past but you should stick to the facts nonetheless. The bottom line is that property investing is no longer worthwhile and while it suits the Government to blame the landlords while simultaneously bleeding them dry the day will come (if it’s not already here)when they will have to incentivize landlords to enter the sector. It makes as much sense if not more to incentivize those that are already in the sector to remain.
@Fiona deFreyne: ur still on that planet the previous poster is 100% correct
@tomas o beag: I’ve one for sale as well, if I can break even on the purchase price or even close
The French introduced rent control in the late 50s when they had a housing crisis and were embarking on a public housing construction plan.
Why ?
Because they recognised that housing shouldn’t be a ‘market’ in a Republic.
But we’re just a ‘republic’ in name where the very term ‘republican’ is abused in the name of ‘Nationalism’.
One fcukd place this place.
@Gerry Ryan deG: France had a housing crisis due to bombings. They had international compensation and brought in rent control in that situation. If you have a time machine maybe you can change things here. The apartments in France wouldn’t match our current standards and couldn’t be rented.
Average Irish residential yields are by far the highest in Europe and shortage of supply ensures that residential landlords will make a fortune.
There needs to be a third party escrow type of arrangement for holding security deposits.
@Fiona deFreyne: you making any money from housing your illegal economic immigrants Tony?
@Fiona deFreyne: Evidence please of highest rental yields.
@Mary Murphy: 7.08% yield on average as confirmed by three different sources and is steadily increasing becasue of gross under supply.
http://www.telegraph.co.uk/property/landlord-guide/attraction-of-ireland-for-buy-to-let/
@Fiona deFreyne: these figures are gross yields not net yields your probably not intelligent enough to understand the difference
@Fiona deFreyne: It also on current purchases and current rent. You may have noticed there was a big deal about negative equity. There is also the RPZ which means those making a loss are tied to make that loss continually after the tenant moves out.
@Fiona deFreyne: You are also neglecting the taxation situation of the yield. Small example in Spain you only pay tax on 40% of net income. So rent a place out receive say 15k per year. Expenses 5k. Net get 10k. Taxable income 4k. Now do the same maths for Ireland. Or better still rather than base your knowledge on a newspaper article, how about being personally knowledgeable on the subject.
@Is Mise jay: “your probably not intelligent enough to understand the difference”
The irony.
@Fiona deFreyne: Don’t believe all you read. Probably the likes of foreign vulture funds like Kennedy Wilson etc might be making large tax free profits but the one off landlords certainly don’t get that return.
I never got deposits back, in 3 places that I rented..places were left better than moved in..landlords always find some way around it!
@Rachael Blanchfield: as believable as your surname………………………
@Rachael Blanchfield:
More fool you for not taking the landlord too court if you have a legitimate case
And wot about the yearly tax a landlord has to pay on the property which is a crazy amount of money that’s one off the resins y landlords have to put up rent
@David Mc Nally: come on David, we all need your expert financial advice? Tell us about free houses.
Any issues facing the average accidental landlord?
@David Mc Nally: how does anyone accidentally get a free house David? Do tell all, I want to sign up.
@David Mc Nally: but you said people can accidentally get a free house. Where do I go? How do I start? Please expand, don’t just keep this a secret. I believe need about 30% of the house price as a deposit to buy an investment property. Id like a house worth €300k. Please tell me who will give me €90k for free.. Come on David…. Tell us…
@David Mc Nally: Where can I get a free house David
@David Mc Nally:
When u are getting back to KingBen on where to get the 90k deposit can you also explain what we need to say to the bank when we want the free mortgage too. Thanks
@KingBen: Looking to rent out more, are you?
@Dave Doyle: no, I just want a free house like David suggested. Don’t you?
@KingBen:I have an apartment, which is in massive negative equity. Which means I cant sell. My family is now too large to live in it. So I am forced to rent it out. The rental income does not cover the mortgage repayments/mgmt fees, so I have to pay the difference each month. I would love to able to get it off my hands, as it has been a burden for nearly 10 years. There is an example of the issues facing the average accidental landlord.
@WinSomeLoseSome: according to David McNally this should all be free to you. But David has gone missing, a troll I believe, trying cause a stir. But, in fact he just made a complete tit out of himself.
@KingBen: Actually my post was meant to go to him, as opposed to you : )
The number of complaints means very little because every single one of them could be wrong. A person ringing because they risk losing their rental could be somebody not paying their rent.
Totally one sided comment from threshold as usual.
There are bad landlords and bad tenants out there shame threshold can only see one side.
Oh boohoo hoo Nick. It must be so hard for some landlords counting all that money from illegally withheld deposits. I had to do a Charlie Bird and track down a rogue landlord in Galway a few years ago who held onto my deposit, and yet charged a new tenant a full deposit. He refused to refund mine without a valid reason, saying the tenant who remained should have gotten the deposit from the new tenant to give to me (even though he had it himself). “I know you’re in there, I can see you through the letterbox” and suddenly the money appeared in my bank account.
@Tom Tom: So your experience is everyone’s? Most landlords return the deposit. By all means punish the landlords that do.
@ Alan McCartney..the first case was in the UK..the dispute was between the management Co and the landlord..I was told that if I didn’t pay a second deposit I was to leave..I tried bringing a case but was told that it was more hassle than it was worth, so I just left it..second time I was in a house share, I was assured the deposit would be forwarded on, it never was..told me it was cashed (no it wasn’t) third time I won’t go into, it was a case of domestic abuse (I didn’t expect to get it back)
Signed a 9 month lease for college term, subsequently got handed an affidavit citing that the landlord wanted to move back in and needed the house for himself.
There seems to be something wrong with the law if that can legally happen?
Impossible to find accommodation for a college student in Galway this late in the year.
Illegal evictions …… a contradiction in terms.
Want a pension income? … invest in a pension fund.
Houses are for Family Homes / shelter …. a basic human need.
If renters can fund the mortgage why are they working to give you the rent and give you a free house..
Ireland a failed society.
https://www.change.org/p/referendum-on-family-home-special-status-in-ireland
And over regulation limiting supply at cheaper end of market
@ginger tomatoes i9: They never considered what removing bedsits would do. They were warned but believed landlords would fund cheap accomadation while having extra expenses
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