Knowledge Centre
Find the meaning of various terms related to renting & letting here.
When renting a new home, there's more to consider than simply picking a property and moving in. Especially when you're searching for a rental for the first time, there are several things to keep in mind. If you're new to the world of renting, you'll likely come across terms you're not familiar with, such as delivery condition, rent protection, and the rent tribunal. These are terms you really should know when you're renting a place on your own, as it's likely you'll deal with one or more of these aspects.
Private sector
What does this entail?
Are you looking for a new home? Planning a fresh start in a new rental property? Then you're likely to encounter an exciting, but not always straightforward process. You might read about certain costs that are unfamiliar or notice peculiar details in property descriptions. The difference between private sector rentals and social housing is something that often leaves people pondering. What exactly do these sectors involve? And which sector might you qualify for when searching for a home? Here you'll find more information about the workings of the private and social sectors.
Difference between private sector and social housing
When searching for a rental in the private sector, you have the freedom to explore options on your own. You're free to look for properties, reach out to estate agents and/or landlords, and negotiate on aspects like rental prices. In the private sector, landlords and agents offer properties themselves, and tenants seek out suitable homes independently.
By contrast, social housing rentals are available for individuals with an income too low to purchase or rent a suitable property in the private sector. Social housing must be rented at a capped amount set by housing authorities. The maximum rent for social housing was €737.14 in 2020. However, this price is often determined through a points system that assesses the value of the property. This includes factors like the square footage of the home and its energy efficiency.
Most of these rentals are managed by housing associations that you can register with. Upon registration, you’ll be placed on a waiting list and assigned a unit when available. To be on this list, you must meet certain conditions. If you don’t meet these criteria, you’ll need to look in the private sector.
When social sector applies
Firstly, you or your partner must not have an income that is too high. Housing associations must allocate 80% of available properties to families with a maximum annual income of €39,055 (as of 2020). 10% can be given to families with an income between €39,055 and €43,574, and another 10% can exceed this amount.
Advantages of the private sector
You might think, I’d also prefer a social rental with a capped rent. If eligible, it’s certainly a wise choice. However, there are also benefits to renting in the private sector. You have more control over the home you live in. You can negotiate with the landlord on the rental price and any contract stipulations. Additional details can be documented in the contract to secure clarity with the landlord. Negotiations tend to be more personal, as they are not mediated by large organisations. This allows for easier arrangements on matters such as renovations or the use of electrical appliances.