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Housing – Fairer Treatment of Renters

• Renters are really struggling with unaffordable and accelerating rents, and extremely difficult application and selection processes of Investment Fund Type Landlords, who screen applicants based on their income.   Renters are not ATM machines or Banks with endless resources to pay more and more rent for others to maximise their profits. Neither are renters just numbers to crunch in the financial industry’s spreadsheets. Renters are human beings with expectations of better customer service and more humane treatment in the rental market.

• Mairead supports Landlords that will treat tenants fairly and humanely.  Mairead will stand up to implement necessary reforms and ground rules to ensure the rental market becomes more efficient and inclusive for the short and longer term needs of renters who are ultimately customers.  Mairead will also support policy to help Renters who can’t save due to paying enormous rent to buy and to make suitable and empty properties deliberately kept vacant available for the wider housing market.

• Mairead will propose an amendment for Residential Tenancies Act 2004 legislation to allow termination of a Fixed Term Tenancy for catastrophic events such as loss of work contract or job, death of a family member, serious health issue having to leave Ireland etc, without forfeiting the security deposit. Currently a fixed term tenancy agreement cannot be terminated by a tenant without losing the deposit.1

• A new Bill once approved would amend current law whereby a ‘Fixed Term Tenancy’ can be lawfully terminated by a tenant for a catastrophic event (like unexpected loss of work contract, death of a family member, a serious health issue which requires tenant to exit Ireland or any other events as defined in the bill), without automatically forfeiting their security deposit. Non-cooperation and/or gaslighting by the Property Agent/Landlord will also be considered for inclusion.

• Many faced this issue during covid when they had to return to other countries, or after losing a job or employment contract. There is no RTB remedy as if renters have to ‘’terminate a fixed term tenancy before the end of the agreed term’’ the Property Agent (Landlord or Fund) will automatically keep the deposit regardless of notice and rent paid in full or the tenant’s loss of employment. Neither will they allow the deposit to be used for rent during the notice period as they want to be paid full rent for the one month notice and keep the deposit as well despite the tenant’s circumstances. Most leases provided by fund type landlords are FTTs (not standard leases that allow a months notice to terminate) and the tenant has no control of that.

• Losing a deposit in addition to a catastrophic event or being out of work and job-less is a considerable impact. Traditional Landlords (in fairness to them) would usually be more accommodating of the circumstances, but this is not the case in Ireland today related to Property Agent/Investment Fund Landlords. They will gobble up the deposit in addition to the rent and have no regard for the tenant’s circumstances. This is unjust enrichment as Property Investment Funds are in a much more affluent position that a tenant that experiences a catastrophic event.

• Currently Irish Law allows a tenant to assign the remainder of the lease and if this is refused a notice of termination can be served with further time limits for notice here which is not practical after already giving one months notice to leave with rent paid.  The security deposit as per RTB case outcomes will always be forfeit to the Landlord as the ”FTT” term is breached regardless of no damage.

As per RTB Guidance, Reasons why a security deposit may be withheld – By law, a deposit is considered the tenant’s but the landlord can establish a right to keep the deposit in certain circumstances, including:

Notice of termination If a tenant provides insufficient notice of their termination of the tenancy, or they terminate a fixed term tenancy before the end of the agreed term.

This is not fair or adequate due to assignment difficulties, timings, and barriers below.

Barriers to assigning remainder of lease (if termination is required) include:

  • The renter may not be in a position to find an assignee due to the catastrophic event especially where they have bona fide reasons for giving notice in order to vacate as soon as possible due to Unexpected loss of work contract/Illness/Surgery/Death in family etc,.
  • In 2020 During Covid emergency viewings were not allowed due to lockdowns and Property Management companies unfortunately do not assist or support renters who need to give notice in any way. Mairead discovered that several tenants in Dublin were ghosted and treated unfairly during Covid emergency by a particular Property Agent, at time of Covid emergency and lockdowns, who were not engaging when circumstances changed drastically and they had to move home or leave for family reasons and give notice to vacate, many paying rent for one month notice term and no damage suffered loss of their deposits.
  • Despite the tenants efforts to make arrangements to manage the situation the Property Agent ghosted them until end of the notice period, with no support or help despite requests, keeping deposits without any regard to the Covid emergency in the country, simply waiting for them to exit in order to retain the security deposit as well as rent paid (this is called sweating the asset).  The nature of the FTT leases which tenants have no choice but to accept, Property Agents believed they are just entitled to keep the deposit in addition to one month’s notice rent without any co-operation or recognition of Covid emergency lockdowns.
  • Mairead came to realise that a new generation of tenants, internationals, professionals and hard-working renters, paying higher and extortionate rents to Fund type Landlords for refurbished apartments (which were former Bedsits), were treated no better those who were previously evicted for profit and gentrification of the areas.
  • Mairead brought the Covid Issues to media attention here as there was no co-operation from the Property Agent.  Mairead also tracked down the Fund behind the Property Agent, going direct to a wealthy International Fund in Netherlands, who pride themselves on treating tenants fairly in Netherlands, and eventually to the attention of their Fund Manager in Dublin.  Mairead provided evidence of the non-cooperation of the Property Agent since giving notice and evidence of their conduct during Covid emergency when it was impossible to find assignees due to lockdown.  The fund manager subsequently returned a €1,600 deposit in full and was apologetic agreeing the situation could have been handled better by their agent.  We need specific legislative reform to stamp out non-cooperation and gaslighting of tenants.
  • Unaffordable rent in the first place to attract an assignee.  It’s extremely difficult to find an assignee to take on a partial lease, remainder months of a Fixed Term Lease.
  • High cost for renter in situ to advertise a new rental not owned by them (€200 approx) on Daft in order to find an assignee when the property agent has a Daft account for advertisements but won’t assist in any way (Tenant’s responsibility only to find an assignee).  An accommodation sharing add (€30 approx) on Daft is much affordable to place, however to assign a lease a new rental advertisement is necessary to find viewers in the market unless there are word of mouth viewers.
  • Non co-operation of Property Management Company/Fund Landlord in terms of any assistance or support to assign to others looking in the rental market. Tenants do not have expertise in the rental market unlike Property Agents have.
  • Property agent’s represents the Landlord’s interests only and often they gaslight the tenant in order to keep the deposit.
  • Excessive personal data and documentation demanded by Property Management Company/Fund Landlords including bank statements in addition to usual Deposit and References and intrusively asking for evidence of Savings information as well – despite ordinarily a Tenant provides a months Deposit and One Month rent in advance and signs a contract, this is not sufficient and it’s a complex application process aimed at highest income tenants only or multiple incomes.  It’s worse than a mortgage application and the renter is not purchasing the property! No one should have to divulge their savings information or balance in bank accounts to get a rental contract!  Renters pay 2 months rent in advance including deposit and sign a legally binding contract to pay rent going forward. This should be sufficient. 
  • Lack of consideration for renters (tenants) who are not treated in Ireland as paying customers with no CCPC (Competition and Consumer Protection Commission) protections for renters, who have expectations for a humane and reasonable standard of customer service.

Fast forward to 2023 where rents have accelerated much higher, another example include where a rental tenant needed to vacate a rental apartment after losing work contract due to downturn, with no future income, gave notice and paid rent in full for the one month notice period. The Property Agent informed the deposit would be forfeit if an assignee was not found, with a €2,275 deposit at stake for a 1 bed apartment.

• Note the rent included complimentary broadband and tv channels, a residents gym and co-working area, concierge, parking space was additional €50 a month. Renters pay extras as if they object or question it as astronomical they won’t get the apartment. See also PET RENT and PARKING below.

• For the €2,275 deposit example, the renter asked the Property Agent if it would be allowed to terminate the lease completely at end of the one month’s notice given as out of work and would be vacating the property, however this could not be agreed to as the 6 month break clause in the lease was only on the Landlord’s site (unilateral) not on the tenant’s side!  So only the Landlord could use the break clause despite the tenant’s circumstances and the deposit would be forfeit as well as the one months notice rent in full. 

• The remainder of the lease was 5 months after paying rent for 7 months including one months notice. Despite the obstacles and zero support from the Property Agent, the renter succeeded in finding a suitable assignee who really wanted to move in (as had been looking for months and couldn’t find in Dublin), who was willing to take remainder of the lease assignment or a longer lease. 

• All the documentation required by the Property Management Company/Investment Fund (proof of employment contract with salary information, payslips for last 3 months proving income into bank account, previous landlord references etc,.), however the Property Management Company/Investment Fund Landlord outside Irish Jurisdiction in Luxembourg declined the assignee saying did not pass their affordability criteria!

• This was despite the assignee, an Irish Citizen, Tech professional having evidence of high income (with approx €93K income per annum with verified work contract, salary and bonus with a single income not two incomes) who was willing and able to pay the deposit and rent going forward, the Fund deemed the rent unaffordable for the assignee, asking if another assignee could be provided! (as if a higher earning assignee than already found could be magicked up after weeks of advertising already with no one else wanting it or any support from the Fund’s Property agent despite asking many times if they had any on their radar looking for viewings or a 1 bed option), refusing the assignee despite having glowing previous Landlord references as a ”delightful tenant”, who even took his shoes off when viewing, who was the only potential assignee that could afford to pay the exorbitant rent and provide the necessary documents. 

Mairead fought hard to have the assignee accepted but the Property Agent/International Fund would not allow him to be assigned the remainder of the lease or give a new lease.  Incredibly he wasn’t earning enough on a very high income salary and bonus, based on undisclosed calculations and numbers in the Fund’s financial spreadsheets.

• Mairead had to then resort to leaving them a very frank and honest 1 star review! on their Dublin South’s Apartment’s Google Maps with praise only for the Concierge, who was the only one with any empathy for the situation.  The €2,275 deposit was then confirmed as would be returned as ”good will” with a request that the 1 star review be removed! (It was), which avoided negative publicity on the matter or an RTB case.  The renter who desperately wanted to take the apartment assignment or new lease was left adrift in the rental market still looking for somewhere to rent in Dublin.  The apartment unit remained vacant while the property management company re-advertised it for a slightly higher rent.

• Note as per RTB guidance, ”Assignment can only take place with the consent of the landlord.  Where a landlord refuses an assignment of a fixed term tenancy, a tenant can serve a notice of termination on the landlord. ”  This does not work in operation or practical terms as the case above demonstrates.

We need stricter Protocols and Policies to improve and regulate how International Fund Landlords operate in the Irish rental market. IFLs are receiving huge rents paying zero tax in comparison to traditional landlords where rental income is taxed.  Renters are paying the cost of these tax incentives and profits and treated inhumanely in the process.

We need more affordable rents for these type of rentals (considering there is no tax paid from the rent received should be lower than market rents not keep on going up and up).  We also need options for renters who are paying rent but can’t save to be able to buy and penalties imposed on funds that deliberately keep properties vacant to control supply and prices.

We shouldn’t have such a gap between International Funds and Traditional Landlords in terms of tax on rental income. It’s creating a divide. We need Traditional Landlords (who pay tax on the rental income which goes towards the economy and the State) to stay in the market and be incentivised where possible. Especially where they are treating tenants fairly and humanely, so we avoid the complete take over of the rental market by IFs, who are faceless organisations managed by non cooperative Property Agents focused on profit first and will keep increasing future rents and controlling supply based on their own agendas.

Renters in Ireland (current and future generations) deserve much better Housing Services.  Renters are paying sky high rents because of inadequate Housing policy and lack of protocols with Investment Funds largely dominating and controlling the rental market.

OTHER AREAS:

REVIEW OF PET RENT

The Residential Tenancies Act 2004 is completely silent on Pets. It’s unstated whether a pet is allowed in a private rental accommodation.  Therefore, It is ‘discretionary‘ for a Landlord to agree whether a tenant can have a pet or not!  Those that allow and advertise their properties as ‘Pet Friendly’ are very scarce indeed.  They also charge tenants additional monthly rent for having a pet.

For Example some Renters with pets have to pay additional €50 a month rent per pet! Pet photographs are required to approve the pets so no unrecognised pets can stay for free.   A renter, lady with 2 small dogs is paying additional €1,200 a year to accommodate her pets where she lives.

There are many valid reasons that a landlord may refuse to allow pets in the property. These reasons include a situation where the space in the property is not adequate to hold a pet, the possibility of the pet becoming a noise nuisance to neighbours, and the possibility of damage beyond normal wear and tear being caused to the property.

A landlord cannot discriminate against particular tenants under the Equal Status Act. Within this legislation, they cannot discriminate on the basis of disability including blindness, and so it is possible to have guide/ assistance dogs where they are required.

Pet Rent needs legislative review. The normal security deposit protects the Landlord against damage.  A non-astronomical pet deposit would be more appropriate than continuous and ongoing Pet Rent charged with the Pet Deposit returned to the tenant once there is no actual pet damage.  Let’s not penalise renters for having or wanting to have a pet. This is a personal decision (autonomy). Pet owners are responsible tenants who are extra cautious and careful in rental accomodation.

If a child in a rental home wants a pet, for example a hamster, puppy or a kitten, if ‘allowed’ by the Landlord the family could be charged additional ‘rent’ for the privilege of having a family pet. The additional rent is a deterrent and an unnecessary cost. Pets have other costs like Vets bills and day to day living expenses.  They shouldn’t be charged ‘rent’ to reside with their legal owners.

Ireland may be the only country in Europe that charges additional rent to pet owners.

For comparison, In France a landlord isn’t allowed to refuse a tenant who has a pet!  Normally, the landlord isn’t allowed to ask to the tenant if has an pet and is not allowed to ask for €50 each month per pet. Of course if the pet does damage, the tenant will have to pay for the repairs.

In 2021 an Irish political party called to end ‘pet rent’ here.  See Residential Tenancies (Tenants Rights Bill) 2021. This includes condition for tenant allowed to have peaceful enjoyment of tenancy related to Pets. This does not expressly state that charging additional rent is prohibited. Debates are here. See also 2023 article here.

In 2024, see UK Renters Reform Bill here where Pet is to become an implied term in every tenancy with human rights for Pet Owners and pet insurance is factored in.  See further UK information here.

S.10 Right to Request permission to keep a pet.

S.11 Pet Insurance.

We need similar reform in Ireland.

REVIEW OF PARKING LICENCES CHARGED AS ADDITIONAL ‘RENT’ 

Some Property Management Companies/Fund Landlords charge their tenants additional fees for parking underground where they live and renters already pay very high rent. Some charge €50-€100 a month or more for a parking ‘licence’ on top of high rent, which is €600-€1,200 a year surplus charge. This is unfair and needs to be reviewed.

One parking space should be provided per apartment included in the rent already, not as extra charge, either in the underground or overground parking area if it’s available at the development. Some tenants don’t need a car space. Renters who can’t afford or don’t wish to pay this for parking at the rental location (there is sometimes a limit for renters generosity who don’t wish to be further fleeced), then have to find alternatives close to where they live, like public non-paying roads or seek a local council permit, which can cause issues and over flow for neighbours and surrounding areas.

Parking should be complimentary so residents can park without extra cost for a parking space (limited to the number of spaces available), at the rental home they already pay enormous rent for. 

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