Michael Collins (Cork South West, Independent) | Oireachtas source

There is no doubt that this Bill will have significant implications for landlords of residential properties. While I welcome the protection of tenants and I believe the Bill will give tenants more rights, I am afraid that the Bill is anti-landlord. I imagine that it is very hard for the Minister, Deputy Eoghan Murphy, to find a balance because I acknowledge that sometimes I would be on the other side of the fence giving out the other way. I know it is hard to find a balance but there are some issues of concern.

There is a big difference between a landlord who owns a number of apartment blocks and the normal Joe Soap who owns a second property and is renting it out. I am aware that many of my constituents are in this boat where they may have built, bought or acquired a second property during the boom years but now this second property may be putting a lot of financial pressure and strain on them. Now these people will have to keep abreast of these new changes and there are serious implications for breaches of these new rules. With regard to registration with the Residential Tenancies Board, am I correct that people will now have to register once a year at a cost of €90? If so, then it is an extra cost on those who are renting the property. Perhaps the Minister could clarify that point.

I welcome that tenants are being protected with the minimum termination notice, which will increase to 90 days for all tenancies less than one year, and to 120 days for all tenancies between one and five year duration. This will place Ireland in line with EU countries such as France, Sweden, The Netherlands and Germany. I do not want Members to forget, however, the other side of the coin when it comes to the landlord’s side. When they have a bad tenant who may not be paying the rent and who may be physically damaging the property where are the landlord rights in the Bill?

I saw a very sad case in my constituency area of west Cork. A lady had rented out her house to tenants who have destroyed the house and refused to pay rent for months on end. It cost this woman a substantial amount of money to evict these rogue tenants. Not only was she down money from the rent she had not received, she also had solicitors' fees afterwards and the costs to repair all the damage to the house. This lady was in bits when I was talking to her. She told me that she never wanted to rent a property again. It was heartbreaking to hear her story and to see how upset she was. I would like to stand here and say that this story is one in a million, but sadly it is not. Where are rights for landlords in these cases?

Under this Bill the proposed maximum fines for breaches of the Act by landlords will increase from €3,000 to €15,000. Furthermore, the Minister has indicated that he is considering extending criminal liability to landlords who disregard the maximum 4% rent increase provisions within rent pressure zones. I do not argue that there have to be repercussions for landlords who breach the law, but I am concerned about whether all landlords will be aware of the changes in the legislation when these new laws come into effect. If the Minister is imposing such strict and severe penalties, it is only fair that each landlord would be written to individually to make them aware of the changes and of the landlord’s new responsibilities.

I am also concerned that with these new changes and extreme penalties for landlords we will see more landlords deciding to sell their properties. If this happens it will only add to our current housing crisis. In my constituency and in towns like Bandon, Kinsale, Clonakilty, Dunmanway, Skibbereen, Schull and Bantry people who are in receipt of housing assistance payment, HAP, are struggling to find accommodation. A major problem with HAP from a landlord’s perspective is that it is paid to the landlord in arrears. This means the landlord only gets the money after the rent is due. This has to be a major factor influencing landlords to choose a private tenant who pays in advance over a HAP tenancy where the landlord is paid in arrears. If the Government is serious about tackling the housing crisis the Minister will look again at the HAP scheme and at the possibility of paying the landlord in advance, which is the norm in the rental market. This would go a long way towards helping people who are receiving HAP to get accommodation.

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