Landlords shun new tenancy board

THE majority of landlords are refusing to sign up to a proposed board to regulate the private rented sector.

Just 30,000 rented properties have been registered with the Private Residential Tenancies Board (PRTB), out of an estimated total of 150,000.

If the landlords do not sign up before the board officially begins work, most likely in January, they will face fines of up to €3,000 and €250 per day thereafter.

“The rest of the landlords have yet to come on board, but you can take it as a given that we will prosecute if they do not. The information is essential for us to do our job,” board director Brian O’Neill said.

He said the long-term aim of the board was to make landlords and tenants more professional. The PRTB is charging an annual fee of €70 for landlords to register their tenants. If a new tenant takes the property, they must register the information again.

The Irish Property Owners Association, which represents landlords, has warned that there will be a “compliance war”. It is seeking registration every four years rather than annually, and would prefer to see tenants assume responsibility for the paperwork.

“There has been a principle objection from landlords because of the expense and the frequency of registration,” spokesman Fintan McNamara said. He added that a landlord with multiple properties could end up paying up to €3,000 in fees per year.

Up to now, the rental sector has been almost completely unregulated, and there is a lack of knowledge about Ireland’s estimated 500,000 tenants.

The registration forms will allow the PRTB to compile a database with details of tenants, landlords, property addresses and the rents charged. It is looking into the possibility of providing an information service, either via phone or the internet, to allow landlords and tenants to check the average rent prices in their area.

Controversially, the Government has decided that the register of landlords will not be supplied to the Revenue Commissioners, meaning that landlords can potentially evade tax on their rental income.

But the legislation setting up the PRTB will give tenants the right to stay in a property for up to three and a half years, after the initial six-month probation period has passed. Landlords will retain the power to evict tenants who display anti-social behaviour.

The PRTB will also have a dispute mechanism which will allow landlords and tenants to solve problems quickly. Many of the initial complaints to the board have centred on landlords withholding deposits, but until the board gets statutory powers, it cannot compel these landlords to appear before it.