Apartment tenants could face big increases in rents next year

Apartment tenants could face big increases in rents next year

Apartment tenants who secured rent freezes last year are set for big headline increases in 2017, according to the state’s largest private landlord.

David Ehrlich, chief executive of Ires REIT, told The Sunday Business Post that while his company was precluded by law from hiking rents until next year, the sector was likely to experience significant increases then.

“Under the new regulation where rents will increase every two years, we believe that rents will continue to grow during that period – just that they will not be able to be captured until 2017,” he said.

“We believe the rate of growth that we would have had will be reflected in 2017.

“Our ability to generate growth is also driven by strong market fundamentals and the significant supply and demand imbalance in the Dublin housing market.”

Ehrlich told analysts on a conference call last week that average monthly rents across Ires’ portfolio of 2,065 apartments were up to €1,372 at the end of last year, an average annual increase of €82 per apartment.

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