It’s great if you’re a landlord as rent is increasing (ok 4%) each year as is the property value. But what happens if the tenants lose their jobs, get sick, etc? They have no where to go. I must declare my interest here in that I have a joint shareholder in a product called www.rentassured.ie and it’s aimed at helping this problem.
It’s a catastrophe (make no mistake about it) if a tenant stops paying. If you have only one property, the rent may be paying a mortgage or even the family holidays but it’s material cash flow. Then you have all the legal issues surrounding getting them out.
Why has this not been an issue before? It’s a growing problem but generally in Ireland there was a propensity to rent while you saved to buying your home. Well those days are long gone and now renting is a long term proposition for a lot of our community.