Rental: In 2003 the rental market experienced an unexpected phenomenon - tenant's began to exercise their power. An abundance of accommodation on offer meant that tenants could not only pick and choose but make demands before agreeing to sign a lease.
Anecdotal evidence began to emerge early in the year that landlords were having to drop rents to attract viewings of their property. Persuading a prospective tenant to sign on the dotted line often involved further negotiation over the rent or the facilities provided.
Some young professionals are now refusing to share a bathroom and expect a modern kitchen with extras such as a dishwasher and microwave.
Kathleen Murphy, a negotiator with Lisney, says while there is still activity in the corporate market, in the premium end €8,000-€10,000 per month bracket they have to be "in impeccable order" to let.
"They need a state-of-the-art kitchen, a fitted power shower and a good location is of paramount importance. The very top end of the market is quieter with not as many families relocating from abroad."
In the €3,000-€4,000 rent bracket business is steady "but we are now getting in euro what we used to get in pounds, representing a 27-28 per cent decrease".
At the €1,000-€1,500 level demand is still reasonably strong, particularly in or near the city centre, in Dublin 2, Dublin 4 and Dublin 6. Parts of suburbia without good transport links and less-accessible areas close to the city centre, like Smithfield in Dublin 7, have suffered.
Landlords are more willing to renew leases to good tenants, often at an equivalent or lower rent .
"There is a greater choice and bargains to be had. Tenants can dictate the terms of the rent according to their budget and the landlord is often more flexible and will accommodate someone, for example, if they want a place furnished or unfurnished."
Break clauses in leases after six months have become more prevalent. Although it is debatable whether these break clauses favour the tenant, who is not sure how long they are going to stay, or the landlord, who is nervous about impending tenants' rights legislation.
Carina Warner, of Hooke & MacDonald, says there is a dearth of high spec one- and two-bed apartments in and near the city centre. "There is a lot of new build on stream but it is not ready yet."
She expects the New Year to be busy with people starting new jobs, although properties are having to be shown a few times before they are let so the condition of the property is important.
"They need to be refurbished every five years or so, it might only be a paint and new carpet job but if there are two apartments in the same building and one is in better condition, it will let more easily."
Carol Chubb of Reservations Network who deals with short-term lettings says bookings coming in for next January are the strongest she has experienced in six years. While they had a good run until September she says the last quarter has been "hard work. We have had to pull out all our old, forgotten marketing ploys in order to fill apartments. I feel this was because of the long wait for the war in Iraq followed by the war itself; those who were making plans to travel sat on the fence and are now due to arrive in 2004."
She says rents at the lower end of the market are only the same now as they were previously in punts. "As more apartments become available the social welfare are lowering the rates they are prepared to pay for tenants and requesting tenants to search out larger accommodation."
The middle segment has been the strongest performer and she is "enthusiastic" about the prospects for the corporate market.
"The financial end of this market began to show their faces during the last quarter and the IT are now looking strong for early January. America has out performed itself in the last quarter September to December; perhaps we are seeing some of that."
