Michael McGrath
Question:177. Deputy Michael McGrath asked the Minister for Finance the number of rent receivers appointed by each of the State supported banks to date in 2013; and if he will make a statement on the matter. [36686/13]
View answerThursday, 18 July 2013
Questions (177)
Written answers
I can inform the Deputy that under the terms of the Relationship Frameworks that govern the relationship between the Minister for Finance and the State supported banks’, the Board and Management team retain responsibility and authority for determining the banks’ strategies and commercial policies and conducting their day-to-day operations. The appointment of rent receivers to properties is a day-to-day operational decision for the Boards and Management teams of the covered institutions. The covered institutions have provided me with the following details regarding their use of rent receivers.
PTSB
- Permanent tsb has appointed 3 Receivers of Rent (Receiver) year to date in respect of Buy-to-Let (BTL) properties.
- 74 BTL properties (on 52 accounts) have been affected by this appointment year to date.
- The bank’s Receiver Strategy for its BTL portfolio is centred on a case by case analysis. Appointments are made where it is deemed to be the most appropriate outcome for both the customer and the bank. The appointment of a Receiver is currently pending on 3 BTL properties (3 accounts).
- A Receiver is appointed by the bank and operates as an agent of the borrower, assuming the role of property landlord in many respects. The Receiver collects rent from the tenant(s) and passes it to the bank, together with attending to any property related issues the tenant may have (in accordance with the Lease Agreement). The appointment of a Receiver should not negatively impact the tenant(s) as the Receiver effectively steps into the shoes of the landlord. The appointment is more likely than not to benefit a tenant as maintenance issues/concerns are more likely to be attended to in a timely manner.
AIB
In the year to date 2013, the number of rent receivers appointed by AIB in respect of buy-to-let properties is in the low single digits. The number of properties affected by these appointments is not tracked as rent receivers are appointed at a customer level rather than on a property basis.
BOI
In our 2012 Annual Report we disclosed a number of 1,100 rent receiver cases. This included formal appointments in place and appointments pending at end December 2012. We will give a market update on numbers at the time of release of our interims.
The receiver notifies the tenant of their appointment and requirement to pay rent to the receiver.
- Any issues relating to the property, e.g. repairs will be dealt with by the receiver.
- The tenant is not required to leave the property unless the minimum notice period based on their rights as tenants has been provided.
- The main impact on a tenant is that they pay their rent to the receiver and not to the landlord. The receiver will write to them to make that clear. In general the rights of the tenant under his or her lease and under legislation are not affected.