Biggest landlord says gap between current rents and market rate is 20pc

I-RES Reit reports an average 20% gap between current rents and market rates it could charge for new tenants. Independent valuers assess the portfolio every six months across 3,600 apartments, estimating average reversion. Reversion reflects the difference between current rent levels and potential market rents. Under new rent rules introduced in March, about 90% of tenants face rent increases capped at 2% per year. For roughly 10% of units that turn over, rent resets to market rates when new tenants move in. The average monthly rent is €1,852, with potential to reach €2,222 on turnover. Early implementation of the new system is reported as in line with expectations and has increased investment activity and international interest.

"We get our portfolio valued every six months by independent valuers, and they have said that they believe the average reversion in our portfolio is about 20pc but I mean that is an average made up of 3600 units, so it really depends on what turns over, he said."

"If you look at the way the rent regulations work, about 90pc of our residents, their rent will go up by a maximum of 2pc per annum. So, that's 90pc of our entire portfolio, he said."

"For what we think is 10pc (of units) that will turn over, where people move out and somebody else moves in, that will reset to market, he said."

"The average monthly rent across the I-RES portfolio now stands at €1,852. It sugggests the landlord could potentially charge €2,222, on average, as the same units turn over."

Read at Irish Independent