New laws support the rights of tenants

LANDLORDS will not be able to jack up rents above reasonable levels under new laws to come into effect before the end of the year.

Tenants will also receive four years security of tenure after six months in the property under legislation published yesterday by the Minister for the Environment Martin Cullen, reversing what he described as a “Victorian approach” to property rights.

The Residential Tenancies Bill was broadly welcomed by tenants rights groups but criticised by landlords representatives.

The new law will apply even if there is no written tenancy agreement.

Landlords will have to register every tenancy agreement at a cost of €70 with a new State supervisory body, the Private Residential Tenancies Board.

However, the minister said the Revenue Commissioners will not have access to the board’s list of registered landlords; the board will monitor rent levels and deal with complaints.

The structure and interior of the property will have to be maintained by landlords to the same standard as when the tenancy began and the landlord will also be responsible for repairs.

Under the legislation, landlords will have to insure the property, provide a point of contact and refund deposits.

Landlords will be prevented from arbitrarily increasing rents as it can only be reviewed once a year and they will be stopped from charging more than the open market rate.

Minister Cullen’s claim that rents had reduced substantially in recent times was contested by Threshold, the tenants’ advisory body.

Threshold chairperson Aideen Hayden said that, while rents at the top end may have fallen, rents at the bottom end of the market had increased by 15% last year and 20% in 2001.

The reason for the demand at the bottom level was because the housing waiting lists were getting longer, she said.

Particularly welcoming the security of tenure, Ms Hayden said the laws needed to be enforced to have any effect and, at the moment, rogue landlords were not being prosecuted for letting out substandard accommodation.

“There will have to be serious sanctions against people who will flout the law,” she said.

The Irish Property Owners Association (IPOA) said the legislation was flawed and the registration system was a bureaucratic nightmare for people who have a substantial property portfolio and those who let low cost accommodation.

IPOA spokesman Fintan McNamara said the security of tenure provision left wide scope for abuse by vexatious tenants.

The six-month trial period was too short and would provide problems for student accommodation and letting holiday homes outside the tourist season.

Minister Cullen said the law will give long overdue rights and protection to tenants.

The package was intended to provide an efficient and attractive private rented sector:

“For too long, Ireland has adopted a Victorian approach to property rights. The system was weighed heavily in favour of the landlord.

"Tenants had to clock up 21 years in a property before they gained security of tenure.

"Given that this type of tenant is few and far between makes the old regime all the more reprehensible.”