FACT
FILE - Renting in Ireland Private Residential Tenancies
Board of Ireland (PRTB)
On
the 1st December 2004 the Residential Tenancies Act 2004
came into full effect. The act includes a requirement for
Landlords to register their tenancies and introduced new
procedures for resolving disputes.
The
Private Residential Tenancies Board (PRTB) is an
organisation that has been set up by the Government. Its
main role is to provide a dispute resolution service for
landlords and tenants. The mediator helps landlords and
tenants to come to an agreement that works for both of them.
The PRTB is als0 responsible for tenancy registration
and from September 2004 all landlords have had to register
new tenancies with the board. Disputes will be arbitrated
by this body rather than the courts.
Registration:
There are currently over 140,000 Landlords in Ireland and
they have to register their tenancies.
All
existing tenancies should have been registered with the
PRTB by the 1st December 2004.
All
new tenancies must be registered within one month. Landlords
must also inform the board if they replace one tenant with
another or if they change the rent within one month of the
changes being made.
What
does it cost to register?
A single tenancy will cost 70. If a Landlord registers
a number of different tenancies in a single building at
the same time the fee is 300. If there is a change in the
tenancy there is no fee, however the fee for late registration
is 140..
The
requirement to register only arises where a new tenancy
is created and a revised rental must be updated in the register
within a month and no further fee will be payable.
The
PRTB is going to rigorously pursue compliance by
Landlords with the registration requirement. If they do
not register, on conviction could receive a, fine of up
to 3,000 or 6 months imprisonment. Once the tenancy has
been registered a Tenant and landlord will be issued with
a registration number by the PRTB.
Exemptions
to new Legislation:
The following are exempt - Business premises, a dwelling
occupied under a shared ownership lease, a holiday let,
a dwelling in which the landlord is also resident or where
the spouse, parent or child of the Landlord is resident
and there is no written lease or tenancy agreement.
Revenue
Commissioners:
The PRTB board will supply specific details about
named individuals if requested to do so by the Revenue.
There is no provision for Revenue to gain blanket access
to the PRTB's database.
The
Landlord's Ability to set Rents:
Under the act, it is illegal for a landlord to demand rent
that is greater than the open market rate or to seek a rent
review within a year, unless there has been a substantial
change in the nature of the accommodation. Tenants who feel
that either their initial rent or proposed new rent is greater
than the market rate can refer the matter to the PRTB board.
Security
of Tenure: Tenants who have been
in continuous occupation of a property for six months have
a qualified right to remain there for a further three and
a half years (Under Part 4 Tenancies).
Landlords
can seek vacant possession for the following reasons: They
want to use the property themselves - They want to sell
it - Tenants have breached tenancy obligations - Major refurbishment
- Required by a family member. Tenants are entitled to request
that they be given first refusal should the family member
only stay for a short period or following the completion
of the refurbishment.
If
the rent is at least 28 days in arrears, the Landlord can
recover possession of the property without giving notice
(see below).
Notice
Periods:
This will vary according to the length of tenancy. The Notice
for Tenants. is the same except for tenancies of 4 years
or more when the Landlord has to give 112 days and the Tenant
56 days. The other notice periods: less than 6 months 28
days - 6 months, but less than 1 year 35 days, 1 year or
more, but less than 2 years 42 days - 2 years or more, but
less than 3 years 56 days - 3 years or more, but less than
4 years 84 days.
Disputes
between Tenants and landlords:
If there is a dispute, the matter can be referred to the
PRTB board's dispute resolution service by either
party. Third parties who may be affected by issues relating
to the tenancy can also register complaints (a neighbour
living besides noisy tenants. The board will examine a range
of issues including the refund or retention of deposits,
breaches of tenancy obligations etc.
The
dispute resolution service has two stages. Stage one is
mediation or adjudication. Stage two is a hearing by a tenancy
tribunal. If both parties agree to mediation the board will
appoint a mediator.
If
either party declines to use the mediator service, or if
the board considers that would not be suitable then an adjudicator
will be pointed. In most cases you can no longer take a
dispute case to the Circuit Court and the PRTB Board
has taken the court's place.
The
Board may award damages of up to 20,OOO and in arrears
of rent up to 20,OOO or twice the annual rent, whichever
is greater (but a maximum of 60,OOO applies to rent arrears
awards) Cases involving higher amounts, will have to be
taken through the courts.
------------------------------------------------
Holiday
rental income is subject to VAT at 21 per cent. For
other rentals the Income tax rates can be as high as 42
per cent with other charges of up to 5 per cent applicable
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Deposits
in rental properties in Ireland
One
of the major problems with a property rental is on the deposit
issue. So far of the 70 disputes determined by the PRTB
- Private Residential Tenancies Board one third have
related to deposit disputes.
These
come from the condition of a property at the end of a tenancy.
The problem is often over conflicting views on what is considered
to be "fair wear and tear". What is acceptable wear and
tear would be grubby marks on the walls and slightly worn
carpets (but how worn can depend on the length of a tenancy).
Under
the Residential Tenancies Act 2004 normal wear and
tear should be assessed as "having regard to the time that
has elapsed from the commencement of the tenancy, the extent
of the occupation of the dwelling that the landlord must
have reasonably foreseen would occur". This means normal
wear and tear will vary from tenancy to tenancy.
If
the landlord considers that the tenants obligations under
Section 16(f) of the Act are not sufficient, then it is
open to them to include additional or more specific requirements
by way of a letting agreement.
A
housing representative advises that tenants should ensure
the property is cleaned before they leave to avoid argument.
One of the best ways of course (although can be expensive)
is to employ professional cleaners and provide the landlord
or agent with a copy of the receipt.
A
common problem is condensation (see
Condensation ) If a property is prone to condensation
problems and the landlord has not made sure it is properly
ventilated it is not fair to blame the tenant, however tenants
should take some responsibility themselves and make sure
they open windows in bathrooms and kitchens or report defects
that the windows won't open (when there are windows) or
that extractor fans are not working.
Threshold
( the voluntary organisation in Ireland that provides information
provides advice, information and support to all citizens
on housing rights in Ireland.) dealt with 190 cases of deposit
disputes in 2005.
The
landlord can specify particular requirements in the letting
agreement , but tenants must agree to these before they
sign the lease. They should also agree an inventory with
condition of each item (including the structure - building
as well as furniture and fixtures) and sign this at the
start of the letting and at the end. If items are broken
at the commencement and are listed in writing then they
cannot be claimed by the landlord at the end of the tenancy.
(See
also Inventories in the UK) & (TDS
Tenancy Deposit Scheme)
N.B.
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