Experiences of the recent past have knocked a serious dent in the national obsession with property ownership. This, combined with an increasingly mobile and international workforce and the absence of new building construction in the past six years, is driving those seeking accommodation towards the private rental sector.
However, this market is undersupplied and overpriced, in particular in Dublin where renters are being charged extortionate rates for sub-standard accommodation. Last week it was reported in this paper that inspections of more than 5,000 private rented dwellings in Dublin found nine out of 10 to be in breach of housing standards legislation. Housing policy needs to address changing trends, including making quality long-term rental a viable option on a par with models in other European countries and in the US.
Buying spree
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A strong example of what private rented accommodation might look like is the Clancy Quay development near the Phoenix Park. Real estate investment firm Kennedy Wilson has been on a buying spree here since 2011, snapping up distressed residential complexes to the point where they now own 1,200 units in Dublin.
The Clancy Quay scheme on the site of the former Clancy Barracks overlooking the river Liffey at Islandbridge is Kennedy Wilson’s biggest acquisition here to date. It paid €82 million for the 13-acre site in mid-2013. At the time, phase one of the scheme had been almost completed and was partially rented; now all 420 units are rented and a further 140 units have been finished.
Kennedy Wilson operates a managed rental model whereby every apartment is tenanted. Rents for the fully furnished two-bed and three-bed units range from €1,450 to €2,000 per month. In recent weeks it has added a tenant amenity package – a relatively new concept in the Irish rental experience – which offers a shared facility that tenants can avail of as part of their monthly rental.
Located in the former 18th-century barracks, The Cobbles is a listed building that was carefully refurbished by the original developer, Jersey-based builder David Kennedy.
The building opens daily between 8am and 10pm, and its reception provides a ready point of contact for tenants, while upstairs amenities include a lounge room for small social gatherings and a media room with a flatscreen TV for sports events or online gaming. Off this is a games room with foozball, another screen and – imminently – a pool table.
On the top floor are eight office-style cubicles with wifi services where tenants can work or study, and off this is a large, fully furnished meeting room with flatscreen TV for presentations. It’s well-suited to a more flexible workforce where working from home is a growing option and, according to Peter Collins, managing director of Kennedy Wilson Europe, many of the tenants work for international tech companies or are working on their own start-ups.
“We have quite a number of young entrepreneurs who book the room for a couple of hours, and it gives them a private, professional space to meet with contacts and deliver presentations. It certainly beats meeting in the foyers of hotels and balancing a laptop on your knee.”
International profile
The facility works well for the international profile of many of the tenants, offering an opportunity to meet others. Kennedy Wilson plans to arrange a Book Club, and in mid-December there will be a mulled wine and mince pies evening for tenants.
Already tenants have gathered to watch international matches and have hosted a Let's Dance party.
“To be honest we would have been sceptical ourselves about the take up here of organised events and activities. We thought we’d have to facilitate people more, but they’ve jumped in ahead of us.”
A glossy, fully-kitted kitchen is also on hand to cater an occasion or prepare party foods for a celebration. Next door an unused commercial premises has been fully refitted as a gym with state-of-the-art equipment.
Converted stables
The second phase of the Clancy Quay scheme is due to start construction early next year. It will include a mix of 100 apartments and 60 three-bed townhouses, some of which will be conversions from the original stables. (The cobbled courtyard provided an authentic Victorian backdrop location for the BBC TV series Ripper Street.)
There’s a third phase planned, though this is likely to be a residential/commercial mix, and planning has yet to be obtained.
The Kennedy Wilson residential tenant profile tends to be in the 25-35 age bracket, and most of its schemes here are populated by a mobile workforce, mainly comprising tech employees.
In Sandyford its Central Park scheme provides 270 accommodation units, and work is scheduled to begin there in early 2015 on a further 160 apartments. At any time about 40 per cent of units are rotating in or out of tenancy so there is a steady flow or stock for rent. All leases are typically for a one-year term and are registered with the Private Residential Tenancies Board.
Collins says on average about 50 per cent of tenants renew the lease, and the terms are revised annually. Typically he says, rental rates have been revised upwards by about 5 per cent annually since 2011.
“There is a shortage of rental accommodation out there and until that’s addressed there will be price increases. The units have a very high standard finish, and are regularly refurbished, so we hope we’re providing a better option in the rental market than what’s out there.”
It’s a professional rental offering that’s a vast improvement on what’s been available to date, but from a tenant perspective the annual lease and rent review is a very short-term model targeted at a younger migrant demographic.
A properly functioning rental market needs longer-term offerings too – on a par with European counterparts – where tenants can rent for many years with a degree of confidence that they can’t be turned out at short notice or subjected to frequent rent hikes. Hopefully schemes such as Clancy Quay mark a start on the route.
How it works in the US
When my sister moved to Cleveland with her husband five years ago, we were all invited to stay, but it wasn’t until this autumn that I finally made the journey. In the meantime they’d had four children, including triplets, so the spare bedroom in their two-bedroom rental was no longer an option.
“Just tell me when you’re coming,” my sister said, “and I’ll book the guest apartment”. Guest apartment? It seems the complex where they live has not one, but several of these. There are four blocks in total and each block has two extra units available to rent by the night or by the week for when family and friends come to stay.
It’s one of those simply brilliant ideas that should be enshrined in building regulations everywhere. The ones in my sister’s block are constantly occupied. Many of her neighbours are empty nesters, elderly couples whose children come and visit at regular intervals. This way, everyone gets a decent night’s sleep and can ignore each others’ annoying or embarrassing habits. The rate is about $80 a night, and each unit takes two to four people.
My sister’s block is aimed at long-term renters. It’s a nice mid-range development that charges a rent that seems reasonable compared to Dublin – though I can’t think of any Dublin apartment block that offers the same kind of services.
Take the underground car park, with generous parking spaces so nobody has to scrape their paintwork trying to slot in. Each tenant has a storage unit at this level for stowing furniture, suitcases or sports equipment. A car park attendant keeps an eye on things and, for an extra charge, will clean the car, change wheels or carry out minor repairs. There are nifty trolleys for taking your shopping upstairs. The building’s basement has two large, well-equipped gyms. There’s also a mail room where post and packages get sorted for delivery, and a large communal laundry room, though each apartment has a utility room with plenty of space for laundry.
At lobby level, there’s a split level function room that guests can use for parties. It’s designed like a country club with sofas and armchairs, a big dining area and space for dancing. It can take around 80 people. As with the guest apartment, this can be booked via the complex’s full-time manager, a brisk lady who circulates daily with a clipboard, making sure everything is up to scratch.
A few steps from my sister’s door is a garbage chute that takes everything, which is handy when you have four children still in nappies. In good weather, they can sit out on a balcony that is big enough for a crowd, and acts like a sitting room in summer.
The entire complex is owned by a single landlord, who has other developments across the city, and continues to build. The formula, like everything in America, is based on good service. There’s a waiting list to rent in my sister’s block, but she’s in no hurry to leave. – ORNA MULCAHY
