Prestigious, exclusive, luxurious; these are the codewords of the corporate letting sector which is catering for a growing demand from business executives for quality residences in the right areas. Banks, IT companies and financial services companies have a stream of senior personnel coming to Ireland on contract work and they take good care of their own.
Many corporate clients avail of the services of letting agents to find high standard accommodation. Ms Majella Rippington of Castleknight Properties deals with corporate clients and individuals, as well as providing property management services.
"The client arrives in totally lost so the first thing we do is sit them down, give them a map and find out what they want. Once we have identified that, we find we only have to show them two or three properties before they're happy," she says.
Castleknight has entire apartment blocks on its books, owned by individual property companies.
"We have to be careful in choosing tenants for blocks, it's important to get the mix right and not to put residents together with incompatible lifestyles. We're also aware of not putting work colleagues in the same building as people who work together may not want to bump into each other when they go home," Ms Rippington adds.
Rents vary depending on the standard of the accommodation but for a two-bedroom apartment in a prime location, you could expect to pay monthly rent of £1,650 (€2,095) on a 12-month lease or £1,950 on a three-month lease. That's the price tag for a ground floor apartment, the equivalent penthouse would cost £2,400 longer term and around £2,700 short term.
Ms Eithne Butler of Dial A Short Let described the level of the decor and the features that would be expected at this price. "The corporate client would be paying for features like under-floor heating, camera intercom, alarm, fully equipped kitchen, jacuzzi, phone/fax, television and stereo and remote controlled secure parking. The interior would have a luxurious, spacious feel, 1,100 to 1,200 square feet with polished cherrywood doors, marble floors, granite worktops and quality carpets." Ms Butler says this type of apartment in a convenient south Dublin city location is typically let to an executive. In some cases a company signs a lease for 12 months for one or several units and various guests or visiting employees of the company will stay there. The average letting fee is 6.25 per cent of the annual rent plus VAT. Some agencies charge up to 7 per cent. The standard monthly rent for family homes in the corporate market is £2,000 and up to £3,500 for a large detached house in an area like Killiney, Co Dublin.
Occasionally an exceptional property will emerge in the letting market with an annual rent in the region of £100,000. Mr Denis Kavanagh, managing director of Gunne Residential Lettings said there is huge interest in such properties, particularly in the embassy belt.
One thing that hasn't changed is the popularity of certain locations. "There is plenty of property out there but it's not in the right location. Business people all want to live in Dublin 4, particularly the Ballsbridge area. I have queues of people waiting to get in to certain apartment complexes in the area," Ms Butler said.
One such complex is the Sweepstakes development in Ballsbridge and Ms Valerie Cunningham, director of European call centres for Compaq, is a contented corporate resident. Ms Cunningham came to Dublin from Scotland in March of last year and her company had lined up a letting agent. She was shown six apartments over one weekend and chose an unfurnished two-bedroom apartment in the Sweepstakes. Compaq covered the letting fee and the initial rent. The Dublin technical support call centre employs around 750 people and up to 40 new staff arrive in from Europe each month. These workers would generally be in their 20s and arrangements are in place to provide them with accommodation for their first few weeks. The new arrivals are picked up from the airport and brought to an apartment. Companies like Compaq might rent one place for six months and put several people through the apartment.
The accommodation at this level is of a good standard, generally fully equipped, around 750 square feet and costing £1,000 to £1,200 per month. The problem for young people on average salaries is then to go on and find somewhere decent to live themselves.
In many cases corporate clients prefer to hand all the arrangements for incoming staff to relocation agencies. One such agency, Colliers Corporate Relocations deals mainly with software companies personnel.
Colliers looks after small relocations, for instance booking a hotel room or finding an apartment for a month but it also offers extensive relocation packages.
A senior executive coming to live in Dublin for two years with family in tow will have a range of needs. The relocators look for suitable properties through letting and estate agents. If necessary they will source creches, childminders or schools. They can advise on doctors, dentists, sports clubs, entertainment and even weekends away.
"It can be anything. One American client wanted us to find an Ultimate Frisbee club for him to join," Ms Anna Stone of Colliers said. "It's a very busy area. We'll arrange things like moving vans, pet transport and quarantine and we're on hand if any problems arise in the future." According to Ms Roie McCann of Beaufort Property Services, families tend to come for periods of one to five years and three years is the average. They would be looking at monthly rent of around £3,000 for a quality home in areas such as Donnybrook, Ballsbridge, Killiney, Blackrock and Dalkey. "June to August is especially busy for families looking to settle their children before school begins," Ms McCann said.
The majority of Beaufort's clients are from abroad but some are commuting from other parts of the State. Beaufort also caters for people in Dublin for two to three nights on rugby weekends, shopping weekends and when there are events at the RDS. Charges start at £39 up to £58 per night for a fully serviced one-bedroom apartment.
People working in the film business periodically have a large cast and crew to find accommodation for. Ms Tricia Perrott is a freelance film producer's assistant and has had the job of finding property for several big productions.
"At one level we're looking for nice two-bedroom apartments for £500 or £600 per week. These places are run like hotels and are for heads of departments and some actors and crew," Ms Perrott said. "At the top end of the market we deal with relocators and they will find a house or apartment within the given price range. They'll arrange leases, moving, and find schools or minders for children."
"The whole accommodation thing is a nightmare and a very time-consuming process," Ms Perrott said. "I've got to source and view properties, arrange leases and sometimes arrange housekeeping. Relocators are a great help and will even stock the fridge and turn on the heating before the tenants arrive." With the burgeoning demand in the corporate letting sector, there has been significant growth in the number of new agencies. There is no regulatory body in the lucrative property letting sector and this has meant open season.
"Lots of agencies are springing up overnight making claims about what properties they have on their books," Ms Rippington claimed.
Another knock-on effect from the boom in luxury letting has been a certain amount of gold digging. Some landlords have unrealistic expectations when it comes to rent, especially from the IT sector. The reality is that these tenants have a budget provided by their company and although it may be generous, it will not be crazy money.
