Landlords must be flexible to hold on to good tenants and, in some cases, that means dropping rents, writes JACK FAGAN

THERE ARE any number of knock-on effects of the recession.

One that was rarely heard of during the boom years has been the recent surge of calls from residential tenants looking for rent discounts. Some of these are coming from workers who have had their wages cut, others who have been put on short time working and even more from renters concerned about their continued employment.

Siobhan Costello, who heads up the letting department of Hooke MacDonald, says that most of the calls have been coming from younger tenants who are finding it increasingly difficult to pay the agreed rents and who now have a variety of other rental options. “We advise the owners to be flexible and to do everything they can to hold on to the tenants, particularly if they are good clients who are especially careful in looking after the properties.”

It was important, she said, for most landlords to avoid vacant periods and another letting fee, as well as the necessity to repaint and upgrade the apartment before letting it again. While most tenancies were normally subject to 12-month contracts, she said landlords needed to make a gesture to hold on to the good tenants who were under pressure.

The tougher conditions in the rental market have been triggered in part by the exodus of so many overseas workers as soon as the Irish economy ran into trouble and the jobs started folding up. One study has shown that there are now over 3,000 apartments and more than 2,000 houses available for letting in Dublin city and suburbs.

A great many of these properties are in outlying areas with poor transport connections and few amenities close by. Such locations hold little appeal for most renters, particularly in an over-supplied market. Paradoxically, out-of-town suburbs like Sandyford and Dundrum are becoming increasingly popular with younger tenants because of the Luas and improved shopping and social facilities in the areas.

It is a different story altogether in places like Swords which has an impressive range of town centre facilities but does not attract the youthful masses because of the absence of a good public transport system. That could all change if the Government funds the promised North Dublin Metro but, with the public finances in dire straits, the timetable for that project must look doubtful.

Eileen Sheehy, who heads up the residential letting service with Sherry FitzGerald, calculates that rents, particularly at the top end of the corporate market, have fallen by 20 to 30 per cent and are now back at 2005 levels. However, her agency has no difficulty in finding tenants once the properties are correctly priced and in good order. A great many clients are either first-time buyers or others trading up who have decided to rent until such time as the property market bottoms out.

Sherry FitzGerald is still getting strong rents of €1,600 to €1,800 per month for two-bed apartments in the IFSC while the newly opened Spencer Dock is making slightly less. The agency is experiencing a shortage of apartments in the city centre – not surprisingly when a great many single people choose to live there because of the vibrant night life and the fact that they can frequently walk to work. The estate agency is also experiencing a shortage of apartments for rent in south Dublin at the moment.

Young estate agent Owen O’Reilly, who has become a key player in the rental market, says that some tenants are looking at four and five apartments before making up their minds. “The quality of the fit-out and fixtures has become very important. This is particularly so for corporate lets where ever more clients want a turnkey service – regular changes of bedlinen and towels, weekly clean up, television, home automation systems and an iPod station. They have to be able to tick all the boxes.”

We have come a long way since the days of the old-fashioned digs – shared bedroom, shared bathroom, shared TV and shared meals. Come to think of it, that was in the last century.