There is no exact figure available for the number of small landlords in Ireland. However, according to the residential tenancies board (RTB), the majority of landlords in Ireland own only one or two rental properties.
Recent changes to legislation, such as the introduction of rent pressure zones, have put additional pressure on landlords, particularly those with only a few properties.
As a result, many small landlords are considering selling their properties or exiting the market altogether, which could exacerbate the housing crisis in Ireland.
Let’s explore the challenges facing small landlords in Ireland and the impact this could have on the rental market.
The Role Of Small Landlords In Ireland’S Housing Market
Small Landlords In Ireland: Meeting The Housing Demand
Small landlords have always played a key role in Ireland’s housing market, particularly in meeting the demand for affordable rental properties.
With the recent surge in rental demand across the country, small landlords’ importance has only magnified.
Let’s take a closer look at the current housing supply and demand situation in Ireland and the role small landlords play in it.
Introduction To Small Landlords In Ireland
Small landlords in Ireland are property owners who rent out one or a few properties.
They are usually individuals who invest in property as a means of generating additional income.
In Dublin alone, there are over 50,000 small landlords, making up a significant portion of the rental housing market.
Current Housing Supply And Demand Situation In Ireland
The current housing supply and demand situation in Ireland is complex.
The rising population and growing demand for rental properties have resulted in a severe shortage of affordable rental homes, particularly in Dublin.
With the current rate of residential construction and supply, the housing market can hardly meet the demand for accommodation.
The Importance Of Small Landlords In Meeting The Housing Demand
Despite the increasing need for affordable rental housing, large-scale developers are usually more interested in constructing high-end properties that cater to higher-income tenants and buyers.
This leaves small landlords as the primary providers of affordable rental homes, with access to the middle to lower-class segment of the rental market.
Small landlords play a vital role in meeting housing demand in the following ways:
- They provide affordable rental housing that meets the needs of lower-income households.
- They are often more willing to adapt the rental rates to tenants’ financial circumstances, which can contribute to the sustainability of tenants’ occupancy.
- They often operate in areas where large developers are not interested in construction or are prohibited from building by local regulations.
- Small landlords can address gaps in the rental market since they may offer a more personalized service to meet the tenant’s specific needs.
- As such, small landlords remain the backbone of the Irish rental market, offering affordability and flexibility, often at the expense of providing more services and amenities.
Understanding The Number Of Small Landlords In Ireland
Ireland has a high rate of owner-occupancy, which means a relatively small proportion of the population chooses to rent rather than buy a home.
According to data from the central statistics office (cso), just over a quarter of Irish households were rented in 2019, which is relatively low compared to other European countries.
However, there are still many small landlords operating in the rental market.
Let’s explore the sources of data on small landlords in Ireland, statistics on the number of small landlords, and a demographic and geospatial breakdown of small landlords.
Sources Of Data On Small Landlords In Ireland
Data on small landlords in Ireland come from a range of sources, including the residential tenancies board (RTB), the CSO, and various surveys conducted by research firms.
Some of the key sources of data on small landlords in the country are:
- The rtb registers tenancy agreements in Ireland and collects data on residential property rental prices and the number of tenancies in Ireland. It is mandatory for landlords to register new tenancies with the RTB, so it is a valuable source of data on small landlords in the country.
- The CSO conducts a range of surveys covering housing topics, including the census, which provides detailed information on the number of rented households in Ireland.
- Other research firms, such as daft.ie and my home.ie, also conduct regular surveys and reports on the local rental market, including data on small landlords.
Statistics On The Number Of Small Landlords
According to the RTB’s latest statistics report, there were 87,533 private tenancies registered in Ireland in q2 2021.
This is a significant increase from the number recorded in the same period in 2020, which was 61,164.
It indicates that the demand for rented accommodation is rising in the country.
The rental sector in Ireland is split between small and large landlords.
Small landlords, who own just one or two properties, comprise around 80% of all registered landlords in the country.
Demographic And Geospatial Breakdown Of Small Landlords
Data on the demographic and geospatial breakdown of small landlords in Ireland is relatively hard to come by.
However, a 2018 report from the RTB sheds some light on this topic.
The report states that small landlords were more likely to be older than large-scale landlords, with a higher proportion aged over 60.
Small landlords were also more likely to own their rental property outright, while larger-scale landlords were more likely to have a mortgage.
The report also highlighted that small landlords were more likely to operate in rural areas, while larger-scale landlords were prevalent in urban areas.
Challenges Faced By Small Landlords In Ireland
Being a landlord in Ireland can be a challenging experience, particularly for small landlords.
These landlords typically own just a few properties and lack the resources of larger property investment companies.
Let’s discuss the financial challenges, regulatory hurdles, and tenancy-related challenges faced by small landlords in Ireland.
Financial Challenges Faced By Small Landlords
Small landlords in Ireland have to deal with several financial challenges, including:
- Difficulty in securing finance from banks and other lenders.
- Increased costs of maintaining properties due to tighter regulations and higher taxes.
- Decreased rental income due to rent control measures.
Regulatory Hurdles Faced By Small Landlords
Small landlords in Ireland must comply with various regulations, including:
- Registering with the residential tenancies board (RTB) and providing tenants with a rent book.
- Complying with new minimum standards for rented accommodation, which require properties to meet certain safety and hygiene standards.
- Ensuring compliance with new regulations regarding rent increases and evictions.
Tenancy-Related Challenges Faced By Small Landlords
Small landlords in Ireland face several tenancy-related challenges, including:
- Difficulty in finding suitable tenants due to a competitive rental market
- Difficulty in handling tenant disputes and administering rents on time
- Dealing with anti-social behaviours by tenants, can cause issues with neighbours and lead to legal proceedings.
Frequently Asked Questions For How Many Small Landlords In Ireland
How Many Small Landlords Are There In Ireland?
It is estimated that there are around 33,000 small landlords in Ireland.
What Is The Definition Of A Small Landlord In Ireland?
A small landlord in Ireland is someone who owns and rents out less than 10 properties.
What Challenges Do Small Landlords Face In Ireland?
Small landlords in Ireland face challenges such as rising costs, tenant arrears, and rent controls.
How Can Small Landlords In Ireland Overcome These Challenges?
Small landlords can overcome these challenges by educating themselves, communicating with tenants, and seeking professional guidance.
Conclusion
No matter the exact number, what’s undeniable is your importance as a small landlord in Ireland.
You’re part of a resilient network that keeps the local housing market vibrant and accessible.
Your commitment fuels economic growth, driving the Irish community forward. Stay informed, stay connected.
Reference
https://www.cso.ie/en/releasesandpublications/fp/fp-trsi/therentalsectorinireland2021/landlords/