Housing charity says landlords refusing to return deposits biggest issue for renters

Threshold’s national advocacy manager Ann-Marie O’Reilly said the 'unlawful retention of rental deposits is a well-documented issue, and one with a proven solution, that is already in operation in other countries like the UK.'

Renters' deposits should be lodged with a third party for the duration of a lease, a housing charity has told TDs and senators.

Threshold has presented a draft bill for the establishment of a deposit protection scheme to Oireachtas members, saying the scheme would address the single most common reason for contacts to the Residential Tenancies Board (RTB). 

According to the most recently available 2024 RTB data, more renters lodged RTB disputes challenging deposit retention than those challenging notices of termination.

Threshold’s proposed legislation calls for a "custodial, self-funded, not-for-profit scheme" in which deposits would be lodged with an independent third party for the duration of the tenancy. 

There would be no cost for landlords or tenants to participate, but landlords would be required to "provide clear proof" when seeking to retain deposits, and there would be defined timelines for repayment.

Threshold’s national advocacy manager Ann-Marie O’Reilly said a deposit protection scheme would mean the prompt return to a tenant at the end of a tenancy unless "a bona fide issue" arises. 

Where a landlord needed to claim expenses at the end of the tenancy, they would have to provide proof of expenses to retain some of the deposit.

Ms O'Reilly said: “The unlawful retention of rental deposits is a well-documented issue, and one with a proven solution, that is already in operation in other countries like the UK. 

Currently, too many renters in the private sector here are having their deposits unlawfully retained and no renter can afford to lose their deposit. A fair and balanced legal deposit protection scheme would remove uncertainty and stress for renters and landlords alike.

Threshold said a woman named Saige had moved to Ireland in August 2020 for her postgraduate degree and while quarantining after her arrival, had found a private room online through her university’s accommodation website. She moved into the home as soon as her quarantine period was over.

However, she encountered issues in the home including with mould, poor transparency around bills, and "a landlord that would come by the property unannounced".

She also discovered she and her housemates had been overcharged for bills for at least one of the months she lived there and decided to leave the house.

"She left halfway through her notice period as she had sourced a new home but was aware that she would be liable for the rent until the end of her notice. 

"When her notice period was over, Saige made several attempts to contact her landlord to negotiate her deposit, the remainder of the rent due, and resolve the overpaid bills. 

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"It took weeks to hear back from her landlord, and it took two months for Saige to have her deposit finally returned."