Dáil Éireann Debate, Thursday - 30 September 2004
11 Mr. Ferris asked the Minister for the Environment, Heritage and Local Government his views on the statement by the Irish Property Owners Association that it is the intention of landlords to pass on the cost of registering with the Private Residential Tenancies Board to tenants; if he intends to take steps to prevent this cost being passed on to tenants; and if he will make a statement on the matter. [22614/04]
Amharc ar fhreagra
Landlords may only seek from tenants the rent or other charges agreed to at the commencement of the letting. Under Part 3 of the Residential Tenancies Act 2004, which will come into operation later this year, a rent review may only occur once per annum unless there has been a substantial change in the nature of the accommodation in the interim. It will also be unlawful to seek a rent greater than the open market rate so a rent increase would not be possible if the market trend is stable or downward. In any event, competitiveness in the market should preclude registration costs being passed on.
The registration fee under Part 7 of the 2004 Act, which came into operation on 1 September 2004, is €70 per tenancy. The net cost can be as low as €10.15 per tenancy per annum because the fee will cover a tenancy for four years and is a tax-allowable letting expense. I do not accept the IPOA contention that it is not possible for landlords to fund the net cost in the context of average rent levels. The single, and potentially multi-annual, registration fee of €70 per tenancy replaces an annual fee per tenancy of €51 that landlords had previously been liable to pay to local authorities. For many landlords, therefore, registration cost may be significantly reduced.
