Published: Wednesday, 26th May, 2010 5:00pm

Rental values down but showing signs of stabilising

Declan Woods.

A new report on rental values from daft.ie contains findings that the average monthly rent in Cavan in the first quarter of this year is €500, representing a drop of 0.8% on the same quarter last year.

It is "still a renter's market, as supply outpaces demand", the report suggests, but there are signs of rents stabilising as the rate of decrease is slower than last year.

The report claims that "rents were largely static in the first quarter of 2010, falling by just 0.4%, compared to falls of 4% or more per quarter in 2009" and that the average rent nationwide now stands at just under €760.

Declan Woods, auctioneer and letting agent in Cavan town, told The Anglo-Celt that he believes the findings are in keeping with his experience of the rental market. However, he feels that people shouldn't be alarmed, as the drop of 0.8% is a fraction of rents that were exceptionally high during the peak and the rental market is still "buoyant".

A three-bedroom letting of good quality in Cavan will now fetch €500 per month, whereas it would have gotten €600 in 2008, according to Declan. A four-bedroom detached letting that would have made €800 in rent a month in 2008 will now get €700, he estimates.

As for oversupply, Declan believes that when prospective tenants hunt around, there isn't as much choice as they expected, as the quality of rental properties can be an issue.

"You could think that there is an oversupply, until you spend a couple of hours with someone who has been looking and can't find what they want," says Declan. "There may be a large number of properties to rent in the county, but once you narrow your search in terms of property type and area the choice dwindles."

Declan emphasises to landlords the importance of maintenance and presentation of their properties.

"It is common sense, but people will only pay for what they get. There is a rental market in Cavan, but it is imperative that the property is well presented and furnished to a certain standard. Tenants expect it in the current market so landlords have to keep properties up to specification.

"Tenants needs are quite exacting. If the property ticks the boxes, there is a market for it."

It's no secret that tenants are approaching landlords seeking rent reductions, and Declan acknowledges that good tenants do have some bargaining power - "within reason".

"There is more of a willingness to negotiate with certain tenants," he says citing factors such as how well the tenants look after the property.

Key in the rental market in Cavan town are Cavan Institute and Cavan General Hospital, and Declan advises prospective landlords to be aware of timing.