New bill targets loophole in student accommodation service charge

If passed, the bill will close a loophole in student rental laws by ensuring mandatory service fees or charges are included upfront in rental prices. Stock picture

A new bill to be launched on Wednesday aims to prevent student accommodation providers from circumventing rent controls by imposing additional charges on tenants under the guise of service fees.

If passed, the bill will close a loophole in student rental laws by ensuring mandatory service fees or charges are included upfront in rental prices.

Last September, mandatory services charges at Dublin City University (DCU) for utilities combined with rent increases saw monthly charges surge by almost 7%.

The accommodation is covered by rental pressure zone (RPZ) legislation, meaning rent increases are capped at 2%.

However, the university increased the service charge at its Glasnevin campus for students from €87 to €130.

At the time, the university said the service charge was expanded, covering electricity, gas, waste disposal as well as maintenance and security.

The cost of services and utilities reflect market conditions and were not set by the university, it said in a statement.

The new bill on Wednesday is being published by Labour senator Laura Harmon, who said while DCU was the highest profile case, she has heard from more students and their unions reporting similar increases in recent years.

The Residential Tenancies (Student Rent) Bill 2026 would ensure that any rent would include mandatory charges, like security or waste, she said.

"They shouldn't be increasing their rents over a certain percentage in RPZs but I believe the accommodation providers were trying to get around that by increasing service charges instead. Students are effectively paying higher rents, labelled as a service charge. It's something that's been highlighted to me by students' unions," said Ms Harmon.

"The bill would apply to any dwelling designated for student accommodation essentially, and it would state that any mandatory charges would have to be included in the figure for rent, so effectively it would ensure the rent is capped."

Last year, further and higher education minister James Lawless asked DCU to reconsider the increases as it was not "in the spirit of the law", Ms Harmon said.

"But the Government hasn't brought through their own legislation. The Residential Tenancies Board should be able to inspect these charges, and they can but I don't know if they are being inspected to make sure they are legitimate," she said. 

"I'm not saying they are not legitimate but there should be transparency around them, if they are going up why, what's the reason exactly, that it's not just willy-nilly."