Dáil Éireann Debate, Wednesday - 30 April 2014
505. Deputy Richard Boyd Barrett asked the Minister for the Environment, Community and Local Government his plans to review the receivership regime to establish protections for tenants whose landlords go into receivership; and if he will make a statement on the matter. [16155/14]
View answerThe private rented sector is an increasingly important element of the housing market with the proportion of households in the sector almost doubling in the period 2006-2011. I recognise that the appointment of a receiver can lead to uncertainty for tenants , especially in relation to the issues of security of tenure and return of deposits.
In relation to the latter, the question as to whether it is the landlord or the receiver who is responsible for returning the deposit can cause difficulties for tenants. This issue will be addressed by the introduction of a deposit protection scheme under the Residential Tenancies (Amendment)(No.2) Bill 2012, which is currently before the Seanad. Under the proposed scheme, any deposit paid to the landlord by the tenant must be lodged with a deposit protection scheme at the commencement of the tenancy and will be available to be returned to the tenant at the end of the tenancy. The establishment of this scheme will resolve the practice of illegally withholding deposits and will ensure that the rights of tenants in relation to deposits are protected, regardless of whether or not a receiver has been appointed to the rented dwelling.
In relation to security of tenure, t he grounds upon which a tenancy in the private rented sector may be legally terminated are set out in the Residential Tenancies Act 2004. In addition, the Act contains provisions relating to the setting of rent and rent reviews and sets out the procedures and notice periods that must be complied with when terminating a tenancy. While the circumstances of each case may vary depending on the terms of the mortgage or charge under which a receiver is appointed, the policies and procedures of banks in appointing receivers must not affect the statutory or contractual rights of tenants.
The interplay between receivership law and the Residential Tenancies Act is complex but I am examining further amendments to the Residential Tenancies Act that could help to bring greater clarity in this area and would be of benefit to tenants and receivers alike. The fundamental objective of any amendments made must be that tenants’ rights are protected and that clear and correct information is available to any tenant affected.
