Dáil debates

Thursday, 27 November 2014

Topical Issue Debate

Private Residential Tenancies Board

3:35 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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I thank the Office of the Ceann Comhairle for allowing me to raise this matter. I also thank the Minister of State, Deputy English, for being in attendance.

The Private Residential Tenancies Board, PRTB, was establish under the Residential Tenancies Act 2004 on foot of the report of the Commission on the Private Rented Residential Sector in 2000, which contained a number of recommendations in respect of tenants and landlords. In the recent past, situations involving individuals I refer to as "tenants from hell" have come to my attention. We all know there are landlords who are no saints but the PRTB seems to be biased towards tenants. I am aware of a number of hard-working people who have bought houses and rented them out to tenants. The latter are very often in receipt of rent supplement but, on occasion, decided not to pay this over to their landlords. I do not know what is happening with the money involved but the landlords are not receiving anything. As a result, they try to remove the tenants from their properties but they find this extremely difficult to do. I have come across cases where the type of thing to which I refer has gone on for almost a year. As a result, some landlords have found themselves out of pocket to the tune of up to €10,000. They cannot pay their mortgages and, in some instances, their mortgages can be damaged. The PRTB appears to be powerless to do anything about this. If a landlord fails to pay the mortgage on his or her property and if the latter enters into arrears, his or her credit rating is damaged. I understand that 70% of landlords have mortgages and cannot meet their mortgage payments without the rent paid by tenants. This is an extremely serious issue. If a landlord changes the locks on his or her house when the tenant is out, he or she can face a fine of up to €20,000.

It has been suggested that tenants should not have access to the PRTB dispute resolution process if they do not continue to pay their rent. I ask that the Minister for the Environment, Community and Local Government give consideration to this proposal.

Will the Minister of State indicate the current status of the Residential Tenancies (Amendment) (No. 2) Bill? Is it proposed to amend the principal Act to make provision in respect of the retention of deposits by landlords and the non-payment of tenants who remain in situ? What are landlords to do with regard to such tenants? I request that the Minister for the Environment, Community and Local Government seek to streamline and speed up the PRTB's dispute resolution process. I understand that landlords in New Zealand can access a hearing within ten days if there are rent arrears involved and that any decisions handed down are immediate and fully enforceable. Funding in this regard is provided from a deposit protection scheme which places no requirement on landlords to register tenants.

Will the Minister of State outline the number of determination orders issued in recent years? How many such orders which have not been complied with has the PRTB had enforced through the courts? If the Minister of State does not have this information to hand, I would appreciate if he could ensure it is forwarded to me. I understand that in 2011 the PRTB obtained 54 judgments against non-compliant parties and that a further 25 cases were settled out of court. The board also issued over 10,000 notices under the 2004 Act in which it warned people about being prosecuted for non-compliance. I would like to be provided with an update on this matter. Will the Minister for the Environment, Community and Local Government consider providing the PRTB with better resources in order that it might enforce its orders? The board has indicated that it received 587 requests for enforcement in 2011 and that, with additional resources, it was able to deal with 150 cases in the first quarter of 2012 alone. There is no doubt that it requires extra resources.

The landlords to whom I refer are obeying the law, they are registered with the PRTB and they pay all the charges - property tax and everything else - they are supposed to pay. Quite often, however, they are being left in limbo as a result of the actions of a small number of tenants from hell who will not comply and who ignore all requests for them to do so. It takes landlords for ever to get anyone to take action in respect of such individuals. This is a serious matter and it relates to law-abiding people, many of whom have families, who have made an investment, perhaps for their retirement. I would appreciate a response to my concerns.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I thank Deputy Stanton for raising this issue, which I have come across in the course of my work as a Deputy and a Minister of State. The Deputy is correct: there are issues which affect those on both sides. It is important that we send out the message at all times that the PRTB is there to achieve the right result and that it is not there to favour tenants or landlords.

I am taking this matter on behalf of my colleague, the Minister of State at the Department of the Environment, Community and Local Government, Deputy Coffey, who cannot be present. The PRTB was established under the Residential Tenancies Act 2004 to operate a tenancy registration system and resolve disputes between landlords and tenants. The PRTB replaces the courts for the vast majority of landlord and tenant disputes. For a fee of €25, parties to a dispute can apply to it for mediation or adjudication services. If either of the parties to a dispute is unhappy with the decision of an adjudicator, they can appeal it to the tenancy tribunal within 21 days of the date of receiving the decision. An adjudication decision that is not appealed to the tribunal within 21 days will become a binding determination order of the PRTB. In instances of non-compliance, parties can request enforcement of such orders through the courts.

Demand for the PRTB's services has increased significantly in recent years, reflecting the sizable growth in the private rented sector. The sector doubled in size in the 2006 to 2011 inter-census period, from 9.5% to 19.5% of the overall residential market. Census 2011 recorded 308,750 households in the private rented sector. This has driven a sustained increase in demand for the PRTB's services. In that context, dispute services have increased by 73% since 2008, when 1,650 requests for dispute resolution were received. In 2013 some 2,861 such requests were received. This is a sizeable increase. Enforcement requests have increased by 305% since 2008. There were some 100 requests in that year compared to 405 in 2013. Tenancy registration has increased from 206,054 in 2008 to 282,918 in 2013, a rise of 37%. The Deputy requested some other figures which I do not have in my possession. However, I will obtain the relevant information, if possible, and forward it to him shortly.

The board has responded to the challenges presented by the increased demand to which I refer by pursuing a programme of outsourcing, shared services and improved ICT systems. An online registration system was launched in November 2010 and online dispute management services were introduced in 2012. The outsourcing of the registration function at the end of 2012 has allowed the PRTB to focus on its quasi-judicial processes - adjudication, mediation and tribunals - and on the enforcement of registration and determination orders. I will also obtain the figures relating to determination orders for the Deputy.

In addition to these efficiency measures, legislative changes are in train in support of the work of the PRTB. Among the main issues addressed by the Residential Tenancies (Amendment) (No. 2) Bill, currently before the Seanad, are the separation of the governance and quasi-judicial functions of the PRTB and the delivery of the programme for Government commitment to establish a deposit protection scheme. The Minister is confident that these legislative changes will allow the board to continue to discharge its statutory obligations in an independent, fair and efficient manner.

The Deputy also raised the issue of the timelines. The PRTB reduced the average adjudication time from some 18 months in 2008 to seven months in 2013, and we understand that the time has been reduced further in 2014. I accept that the timeline is not short enough in some cases but it is certainly improving a lot.

3:45 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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I thank the Minister of State for his response. I understand tenants are obliged to continue to pay rent while awaiting a decision under the dispute resolution process. However, I have come across many cases where they do not, and landlords feel the seriousness of this matter is not being accounted for at the hearings. Determination orders are issued as a result of the dispute resolution process. However, this does not really improve the situation for landlords as tenants often ignore them. The PRTB can, by law, enforce the determination orders in court but it is not obliged to. Where does that leave the landlord? This is a major problem for some landlords who have approached me in recent years. It is open to landlords to take the tenants to the Circuit Court for not complying, but this can be very costly, and can range from €5,000 to €10,000. Therefore, many landlords cannot afford it. The tenant may be in arrears, thereby complicating the issue. As I stated, 70% of landlords have loans.

The figures the Minister of State outlined show just how much we are depending on the private rental sector for housing. I have come across a number of landlords who say they are very annoyed and upset and having sleepless nights over circumstances like these. They are thinking of getting out of the sector altogether as it does not pay and is not worth the hassle, trouble and stress. If the landlord makes one mistake, he can find himself before the courts or subject to a serious fine. The PRTB interprets the regulations for notice extremely strictly. I came across one case where the notice was texted and handed in the door two days later. It was deemed that the written notice was not given in the right timeline so the whole case went into limbo after that.

This is a serious matter. There are devils on both sides of the argument but the fact that landlords who are paying the property tax and other charges are being left in limbo is not being addressed. The process should be speeded up dramatically, as in New Zealand.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I will bring the Deputy's concerns to the Minister and discuss the matter with him. The Deputy raised some very important issues. Some tenants believe they have all the rights but no responsibilities, and the Deputy is correct in that regard. We must ensure responsibilities are met on both sides.

There are rogue landlords bit this has been addressed significantly in recent years and the PRTB has helped in this regard. Certainly, it is matter of getting the right balance. The Deputy is correct that we are currently very heavily dependent on private landlords. We will need them in the years ahead, even given the announcements yesterday. There is significant reliance on the private rental sector, which needs to be encouraged, but those concerned need to be protected also. I will certainly raise with the Minister the issues raised by the Deputy and ensure he gets a response.