Catherine Martin (Dublin Rathdown, Green Party) | Oireachtas source

I move amendment No. 8:

In page 6, between lines 2 and 3, to insert the following:

“Amendment of section 5 of Act of 2004 – definition of deposit 3. Section 5 of the Act of 2004 is amended in subsection (1) by the insertion of the following definitions—

“ ‘deposit’ means a sum of money held (whether by the landlord or otherwise) as security for the performance of the tenant’s obligations arising under or in connection with a lease or tenancy agreement;

‘key money’ means any sum of money demanded by way of fine, premium, foregift, reimbursement of expenses, administration charges, or otherwise as consideration for the grant, continuance, extension, variation, or renewal of a tenancy agreement, or for consent to the surrender or disposition of the tenant’s interest under a tenancy agreement or to a subletting by the tenant; but does not include any sum payable or paid by way of rent or deposit;”.”.

Amendments Nos. 8 and 9 have been recommended by Threshold to address the fact that there are no protections for deposits in legislation. Amendment No. 8 seeks to insert a definition of "deposit" in the Residential Tenancies Act. While the Act mentions deposits and imposes some obligations regarding them, it does not contain a definition. This has allowed a lacuna to develop in regulation.

Amendment No. 9 on the regulation of deposits restricts the growing practice of landlords seeking two months in rent as a deposit along with the first month's rent. I am sure the Minister is aware of this. It is a sizable amount for any tenant to produce, and vulnerable, low-income tenants in particular. The Irish Timesand many other newspapers have reported that some of the country's largest private landlords are seeking two months' rent in deposit. The common practice regarding deposits is that they be the equivalent of one month's rent. This practice would be placed on a legislative basis by this amendment.

Amendment No. 9 would also prohibit the requirement of "key money", which we have defined in amendment No. 8. Key money is the money that prospective tenants are required to pay before they get the key to the property. It is also known as viewing fees or non-refundable booking fees for the viewing of properties. While those who can afford these extra costs might just find them tedious or an annoyance or inconvenience, key money is a real concern, poses a material obstacle to accessing housing and introduces further discrimination on the basis of wealth into the already stressful process of searching for housing. In effect, it is locking people out of even viewing accommodation that they badly need.