Dáil Éireann Debate, Thursday - 18 December 2014
143. Deputy Michael McGrath asked the Minister for Finance his plans to put a protocol in place for the operation of rent receivers appointed to residential properties; and if he will make a statement on the matter. [49316/14]
Amharc ar fhreagraThe 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. Approximately 1 in 5 households are now renting their home in the private sector.
The grounds upon which a tenancy in the private rented sector may be legally terminated are set out in the Residential Tenancies Act 2004, the implementation of which is overseen by my colleague, the Minister for the Environment, Community and Local Government. The Act sets out the procedures and notice periods that must be complied with when terminating a tenancy. The Private Residential Tenancies Board is responsible for the resolution of disputes between tenants and landlords (per section 151(1)(a) of the Residential Tenancies Act 2004). In circumstances where a receiver is appointed it is essential that the rights of tenants are protected. 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 cannot affect the statutory or contractual rights of tenants. The tenant continues to enjoy the same security of tenure. The appointment of a receiver does not mean that a tenant loses their rights under the Residential Tenancies Act. The collection of rent is not an activity regulated by the Central Bank of Ireland and accordingly, the provisions of the Consumer Protection Code 2012 and other codes issued by the Central Bank would not apply to a receiver carrying out this activity.
Arising out of concerns on this issue the Department of the Environment, Community and Local Government met with the Irish Banking Federation (IBF) in relation to the provision of guidance relating to receivers and their responsibilities towards tenants. As a result of that meeting, the IBF published a guide to receivership for residential tenants, which may be viewed at http://www.bpfi.ie/wp-content/uploads/2014/10/BPFI-A_Residential_Tenant_s_Guide_to_Receivership.pdf. The guide explains that where a receiver is appointed to a rented residential property, the rent should be paid directly to the receiver and that a receipt should be given by the receiver to the tenant. The guide also advises tenants to contact the receiver in the first instance regarding requests for repairs to the property. This guide is a useful contribution to a clearer understanding of the relationship between receivers and residential tenants.
However, the interplay between receivership law and the Residential Tenancies Act is complex. In that regard, the Department of the Environment, Community and Local Government is introducing further amendments to the Residential Tenancies Act that will help to bring greater clarity in this area and will be of benefit to tenants and receivers alike. This will provide that where a person is appointed as a receiver to carry out the functions and exercise the powers of a landlord under a tenancy, that person will be considered to be the landlord for the purposes of the 2004 Act. 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.
