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Rental Sector

Dáil Éireann Debate, Tuesday - 13 July 2021

Tuesday, 13 July 2021

Ceisteanna (337)

Bernard Durkan

Ceist:

337. Deputy Bernard J. Durkan asked the Minister for Housing, Local Government and Heritage if small landlords dependent on income from their rented property have protection in the event of the tenants paying no rent and overholding the property; and if he will make a statement on the matter. [37460/21]

Amharc ar fhreagra

Freagraí scríofa

The Residential Tenancies Board (RTB) was established as an independent statutory body under the Residential Tenancies Acts 2004-2021, to operate a national tenancy registration system and to facilitate the resolution of disputes between landlords and tenants.   A dispute may be referred to the RTB under Part 6 of the Acts - please see www.rtb.ie for information on the RTB's dispute resolution service.

In particular, section 78 provides a non-exhaustive list of matters that may be referred to the RTB for dispute resolution, which includes an alleged failure by the tenant or other occupant to offer up, by the specified date, vacant possession of a dwelling on foot of receipt by him or her of a notice of termination validly served by the landlord, and a claim by a landlord for arrears of rent or other charges.

The Emergency Measures in the Public Interest (Covid-19) Act 2020 provided that a  rent increase was not permitted to take effect during, or in respect of any part of, the period from 27 March 2020 to 1 August 2020. From 1 August 2020, the blanket ban on rent increases taking effect inside or outside of a Rent Pressure Zone (RPZ) was lifted for all, apart from the most vulnerable tenants.

The Residential Tenancies and Valuation Act 2020 (RTVA) and subsequently, the Planning and Development, and Residential Tenancies, Act 2020 (PDRTA) provide that rent increases were not permitted to take effect during, or in respect of any part of, the period from 1 August 2020 until 12 July 2021, for tenants with rent arrears due to Covid-19 and at risk of losing their tenancy who make the necessary declaration. Any notice of termination grounded on rent arrears served in respect a tenant protected under the PDRTA must provide 90 days notice (rather than the usual 28 days notice) or specify a termination date of 13 January 2022 (whichever is later).

The Residential Tenancies (No. 2) Act 2021, which was signed into law on 9 July 2021, provides for an extension of the enhanced protections under the PDRTA until 12 January 2022.

Any notice of termination grounded on rent arrears must be copied to the RTB and will be invalid if it is not so copied. A notice of termination grounded on rent arrears can only be served by a landlord on the condition that a written rent arrears warning was given to both the tenant and the RTB and that the arrears were not paid within 28 days (doubled from 14 days) following receipt of the warning by the tenant or by the RTB, whichever occurs later. The RTB acknowledge receipt of the warning notice to the landlord and tenant and provide the tenant with written information to enable them to get advice from the Money Advice and Budgeting Service (MABS) and on the income and other supports available.

These measures are designed to prompt early engagement to deal with any rent arrears situation arising. Further information is available at www.rtb.ie. 

Rent reviews could be carried out at all times during the pandemic and rent decreases could, and can, take effect. A rent increase is payable by relevant tenants from the end of the given emergency period.

Tenants are required to continue to observe the normal terms and conditions of their tenancy including paying rent to their landlord during any emergency period. In the event of a tenant having difficulty meeting their legal obligation to pay rent due, he or she is encouraged to engage with their landlords at the earliest opportunity. The tenant may also wish to contact the Department of Social Protection, the RTB and the Money Advice and Budgeting Service (MABS) to obtain the State supports available.

The protections under the PDRTA do not apply to a tenant who owed an amount of rent equal to 5 or more months’ rent on 10 January 2021 or builds rent arrears to such an amount.  The PDRTA provides for a number of scenarios, set out at the weblink below under which a landlord can make a declaration to the RTB and to the tenant with the effect that the PDRTA protections cease to apply in respect of the tenant - https://www.rtb.ie/emergency-measures-ended-new-protections-introduced-for-the-rental-sector/latest-rent-arrears-procedures-requirements-and-protections - including where their application would cause undue financial hardship to the landlord.

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