64% of Dublin tenants spending more than 30% of their income on rent

A new survey has revealed that more than 64% of Dublin tenants are spending more than 30% of their net income on rent.

The survey was commissioned by the Residential Tenancies Board (RTB) who say it is one of the largest studies ever undertaken of the rental sector in Ireland.

It also revealed that 79% of tenants describe their experience of renting in the private rental sector in general as ‘positive’ or ‘very positive’ with just 3% stating their experience has been negative.

However, affordability is a huge issue as rent levels are often seen as out of their control and not linked to income.

Half (50%) of all tenants surveyed stated that they spent 30% or less of their monthly net income on rent.

A similar proportion spent more than 30% of their monthly net income on rent, with 12% claiming that they spent more than 50% of their monthly net income on rent.

The survey results found that 88% of small landlords rated their experience with their tenants as ‘positive’ or ‘very positive’ when managing their tenancies.

82% of this group stated that the key drivers of these positive experiences are ‘good tenants who paid rent on time, steered clear of issues, and good communicators’.

However, while the majority of small landlords appear likely to remain in the market for the foreseeable future, their contribution will decline as the market changes. The research suggests that a sizeable proportion, 26% of small landlords, plan to sell a rental property in the next five years.

On the other end of the spectrum, large landlords have clear intentions to expand their portfolios, which suggests that the profile of landlords is set to change.

“The RTB’s Rental Sector Survey provides a comprehensive insight into the current private rental sector,” said Pádraig McGoldrick, Interim Director of the RTB.

“The last number of years have been ones of constant change so it is the hope that this report will establish an evidence base of data around the actions and intentions of private landlords and tenants, and that the information will facilitate an up-to-date and informed policy perspective for a rental sector clearly experiencing a wide range of difficulties.”

“It’s worth noting that the RTB’s tenancy registration data shows us that small landlords who own 1-2 properties make up about 86% of all landlords and supply an estimated 53% of the private tenancies in the rental sector.

“Despite any potential changes in the profile of landlords, these smaller landlords will nevertheless likely continue to provide the most significant proportion of the private rental accommodation for the sector well into the future.

“However, with 26% of small landlords indicating an intention to sell a property within the next 5 years, there is potential for increased pressures on supply and rent levels during this period.”