O’Donnellan & Joyce rental department had an outstanding year. The volume of rental stock increased by 15%. Landlords with rent-capped properties have been exiting the rental market, with new investors coming into the market looking for high rents. Purchases through private pension funds have risen due to the tax benefits. Rents have continued to remain strong across Galway city and county due to the lack of rental properties; however there is a limit to the price people can afford for accommodation. There is a cut off level that is unattainable unless a property is over occupied. Most landlords do not want to over occupy their rental properties.
Previously rent-capped properties are of no interest to investors so this stock is leaving the rental market. Non rent capped properties are favoured by investors so they can achieve a reasonable yield. 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 instead of doing it themselves. These costs are tax deductible against the rental income making it financially wise for landlords to appoint a licensed agent. The rental market is performing well for Q4 2024. It is predicted that rentals in 2025 will continue to remain strong. There is a large demand from tenants and the stock levels are not increasing enough to meet demand. The company's biggest achievement of 2024 has been increasing its property management portfolio by 15%. It has a mix of individual landlords and private pension fund landlords. ODJ has a high percentage rate of the sales market in Galway and now have a good market share of rentals also.
The buy-to-let (BTL ) market will remain strong in 2025 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.
