Ongoing issue with supply of rental properties in the city

City-based estate agents and auctioneers DNG Maxwell Heaslip & Leonard has seen a rise in the number of properties the company lets and manages this year. Fergal Leonard, director of the company’s rental division, credits the increase in business to the level of service the company offers. “Landlords want to make sure that their asset is being looked after properly so they come to us,” Leonard said. “We understand the market and have a fine-tuned process for securing tenants and making sure the tenancy runs without problems.”

As one of the larger letting agents in the city, the rental team at DNG Maxwell Heaslip & Leonard are adept at navigating the intricacies of the rental market. It has become a time-consuming business and according to Leonard, a lot of new legislation affecting tenancies and also property compliance has led more and more landlords to seek the services of an agent for peace of mind.

The number of properties advertised for rent in Galway city so far this year has remained relatively stable - between 30 and 40 units appear to be available at any one time so far this year. This figure had hit an all time low in 2020, where it was merely in the teens. While there has been some supply of new properties to the rental market, this increase has been negated by the number of landlords leaving the market. The most recent RTB Rent Index 2023 Q4, tells us that new tenancies have reduced by an incredible 44 per cent since 2010. According to Leonard, “This trend is evident in the market. Due to the lack of supply, tenants do not have a choice, therefore are not moving. This coupled with landlords vacating the market, has added to the difficulty in tenants sourcing properties.”

Why are so many landlords leaving the market? According to Leonard, “We have seen landlords who, having rented their property for many years, are just at the stage when it is right for them to sell to benefit their own retirement plans – this has always been the case.” However, the rise in house prices and the amount of work involved in managing a rental property has also given reason for some to leave. “We’ve seen a lot of landlords selling older rental properties. This has helped the much needed supply in the second hand residential market where we see new life breathed into older properties in great locations. New A rated properties are popular with renters, however new properties also come at a price and command higher rents.”

DNG Maxwell Heaslip & Leonard recently scooped the National Branch of the Year award for 2024, an achievement the entire team is very proud of. “Our rental team played no small part in this achievement,” said managing director, Mairead Leonard. “The level of service the team offers is excellent and I’m delighted this was recognised and contributed to our win!”

For more information, contact Fergal Leonard MIPAV, TRV, MMCEPI on 091 565261 or email rentals@dnggalway.ie.

 

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