An extensive survey of the private rental sector in Ireland indicates that the median amount of money tenants spend on rent is 30% of their monthly net income, after tax and excluding bills and services charges.
The study also shows a high level of positive experiences among tenants and small landlords.
The research, carried out on behalf of the Residential Tenancies Board (RTB), covers the perspective of small, medium and large landlords, tenants and letting agents.
Carried out by Amárach Research, it is the second phase of what is described as one of the largest pieces of research ever undertaken on the sector, involving more than 2,100 surveys with people in person, on the phone, and online as well as focus groups.
The survey found that 83% of tenants in the private rental sector were positive or very positive about renting their current property while 3% were negative or very negative.
This finding - and many others in the survey - is in line with research carried out in 2021 in the first phase of the research.
The survey noted an upward trend in rent amounts being paid, but almost 70% of those surveyed said their rent had not gone up since their tenancy had commenced.
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There has been an increase in the number of tenants receiving rent support, with one in five found to be receiving some sort of assistance.
83% of those in receipt of rent support were receiving Housing Assistance Payment (HAP), which is up from 58% in the 2019/2020 survey.
Non-Irish citizens account for a significant proportion of all private tenants surveyed, 40%, up 2% on the earlier research.
The majority of tenants, 78%, are in employment.
A total of 33% live with their spouse/partner and children and 29% share their accommodation with others.
Older renters, aged 45+, account for 17% of all tenants surveyed and they are more likely to be living alone and in receipt of rental assistance.
Asked about their expectations, almost half of tenants (49%), said they expected to own their own homes in ten years, but the vast majority saw themselves still renting in 12 months' time.
The main concerns expressed by tenants was the lack of supply and choice of rental properties, insecurity of tenure, affordability, and the cost-of-living crisis.
Many see their choices in the rental market as extremely limited, so the default is that they stay where they are according to the report.
"The key fear is of not being able to find something similar for comparable rent and no one believes that the current situation is improving."
In terms of landlords, the research focused on small landlords who own one or two properties; medium landlords with up to 99 properties and large landlords who own over 100 properties.
Small landlords expressed an overall positive experience with their relationship with tenants in 90% of tenancies rated as very positive or positive.
The age profile of small landlords is getting older, with 79% aged 45 and over compared to 68% in 2021.
The survey found mixed reaction to Rent Pressure Zones as a measure to address rental inflation, while there was division also in relation to the impact of recent regulations.
26% of small landlords felt recent regulations had made the sector more professional, while 25% believed it had made it less professional.
A majority, 55%, were unlikely to recommend becoming a landlord, compared to 50% in the earlier study.
The researchers also spoke to some former small landlords and found that their main reasons for selling included the fact that they no longer wished to be a landlord (55% in 2020 and 60% in 2022); taxation is too high on rental income (6% in 2020 and 51% in 2022); being a landlord was not profitable (28% in 2020 and 49% in 2022), and the regulatory environment for landlords (4% in 2020 vs 32% in 2022).
The likelihood of current small landlords selling a property has increased slightly with 27% of properties likely or very likely to be sold in the next five years.
However, the study found the majority of properties, 52%, are unlikely to be sold in that time period.
The propensity to sell property was higher among medium landlords in the short to medium term than it was in 2020.
26% of those surveyed said they were likely to sell within 12 months and 29% within 2 years.
This group was also less likely to recommend becoming a landlord to a friend or colleague. 63% said they would not recommend it, compared to 47% in 2020.
Large landlords typically own and manage hundreds and, in some instances, thousands of properties according to the research with many of these organisations established or becoming active in the past decade and primarily targeting the medium and high-end of the residential rental market.
The report describes the larger landlords as "ambitious and growing", and added that they tend to take a longer-term view of the sector.
The challenges they identify include the regulatory environment which they believe favours tenants over landlords; access to and the cost of finance and increasing demand but shortage of supply of new stock.
Almost all the letting agents surveyed (98%) said that demand exceeds supply in the rental sector.
They believe that the pace and complexity of regulatory change has made the market unattractive for smaller landlords.
They are of the view that regulation is geared more towards protecting the tenant rather than protecting the landlord and most cited examples where tenants had not complied with regulation (such as paying rent) and in their opinion, landlords were left with no effective means of redress.
Looking at the research as a whole, the report says that the people they interviewed perceived the residential rental sector as fragmented and primarily occupied by part-time landlords or landlords who become property owners due to circumstances.
These smaller landlords are believed to be leaving the sector due to challenging banking, regulatory and tax conditions and this is contributing to the supply shortage of rental properties.
It suggested that their departure has created opportunities for larger landlords.
The research found some shared perspectives amongst tenants, landlords and letting agents, including that demand continues to exceed supply across all property types and will continue to do so for the foreseeable future.
