O’Donnellan & Joyce's rental department had an outstanding year last year. The volume of rental stock increased by 25 per cent. While traditional landlords with rent-capped properties have been exiting the rental market, we have seen a substantial uptake of new investors into the market looking to avoid savings depreciation through inflation.
Rents have continued to remain strong across Galway city and county due to the lack of rental properties. Previously rent-capped properties are typically being bought by first-time buyers, further reducing stock. Investors are targeting properties that are not rent-capped and charging high rents to achieve high yields.
New landlords are aware of ever-changing legislation regarding rental properties and are choosing to hire specialised and licensed property agents to act on their behalf. These costs are tax deductible against the rental income making it a no-brainer for landlords.
Currently, cash funds in the bank are losing money and with inflation at its highest level in years, property is attracting investor’s attention.
The rental market was performing very strongly during Q4 2023, and is showing no sign of easing off in 2024. Therefore, it is predicted that rentals in 2024 will continue to perform well with rental prices and demand remaining strong.
O’Donnellan & Joyce's biggest achievement of 2023 was increasing its property management portfolio by 25 per cent.
Following being awarded a position on the Independent Trustee Company (ITC ) property management panel in 2022, O’Donnellan & Joyce has seen a large uptake of landlords instructing its team to manage their properties through this platform.
The buy-to-let (BTL ) market will remain strong in 2024 as inflation and negative interest rates in banks continue to punish those with cash in the bank. Investors will see good opportunities to hedge against inflation through the PRS. The large demand for rental accommodation makes the BTL market attractive. O’Donnellan and Joyce will be on hand to provide the required professional management advice to investors.
