Seanad debates

Tuesday, 23 November 2021

Residential Tenancies (Amendment) (No. 2) Bill 2021: Committee Stage

 

12:00 pm

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

Unfortunately, I am unable to accept amendments Nos. 8, 15 and 17, which propose, retrospectively, to remove the ground for termination of a tenancy under section 34 of the principal Act such that if the landlord intends, within nine months after the termination of a tenancy under that section, to enter into a enforceable agreement for the transfer to another for full consideration of the entirety of his or her interests in the dwelling or the property containing the dwelling, that is, if the landlord intends to sell the rental dwelling, and to amend the wording of the termination ground under paragraph 5 of the table in section 34, relating to the substantial refurbishment or renovation of the rental dwelling to remove the grounds for termination based on the landlord's intention to sell, or the landlord requiring the rental dwelling for his or her occupation or for occupation by a member of his or her family, or the landlord intending to substantially refurbish or renovate the rental dwelling in a way that requires the dwelling to be vacated for that purpose.

The ground for termination of a tenancy on the basis the landlord intends to sell the dwelling has been debated in respect of both Government Bills and Private Members' Bills and motions before the Houses. An outright ban on the sale of rental properties as a ground for tenancy termination would deter investment in the sector. It has been recognised the termination of tenancies for the purposes of the grounds listed in the table in section 34 of the Residential Tenancies Acts 2004 to 2021, inclusive, including where a property is to be sold, is a legitimate use of the legal provisions designed to underpin the constitutional property rights of landlords. Nothing in the Residential Tenancies Act prohibits a landlord from selling a property with the tenant in situ or selling with vacant possession. The commercial reality is there is generally a lower market value with tenants in situ. I think the Senator will accept the landlord owns the property. A total of 70% of landlords own just one property, as I outlined, 86% own just one or two properties and the vast majority operate on a small scale.

The Residential Tenancies Act 2019 implemented a number of amendments to the termination provisions of sections 34 and 35 of the principal Act of 2004 to make it more difficult to falsely cite or rely on any of the grounds for termination in the table in section 34. Such invalid citation is now dealt with as improper conduct by a landlord for the purposes of Part 7A of the Residential Tenancies Act, with the Residential Tenancies Board, RTB, empowered to sanction such conduct. Where a former tenant provides his or her contact details for such purposes, a landlord is required to offer a former tenant a reletting of the rental dwelling where, for example, a sale does not conclude within nine months of the termination, where the landlord or family member moves out of the rental dwelling within 12 months of the termination or where necessary substantial refurbishment or renovation has concluded. If the landlord does not offer a relet in such circumstances, he or she will be liable to a sanction of up to €30,000. The RTB has been resourced to carry out this function.

Landlords need to be in a position to manage their property to suit their financial needs as their life circumstances change. Covid-19 will have badly affected some landlords and financial pressures may force a landlord to sell a rental property. The law should not reduce the sale proceeds to landlords by removing their right to terminate a tenancy. While it may be the case the termination of a tenancy can lead to homelessness if the tenant is unable to source alternative accommodation, it would not be appropriate to prevent a landlord from making a rental dwelling available for occupation by himself, herself or a family member.

The proposed amendment to remove the landlord's constitutionally protected right to terminate a tenancy and occupy his or her own property dwelling cannot be accepted. The Constitution recognises the strong sense of family that exists in Ireland and when it comes to providing a home for a family member in favour of a stranger, I believe an Irish citizen will, innately, come down on the side of blood being thicker than water.We need to respect the Constitution and it is reasonable to expect that many landlords with one or two properties might need to provide a home for a relative at some stage. The Residential Tenancies (Amendment) Act 2019 significantly strengthened the protections around the grounds of termination of a tenancy, particularly regarding paragraph 5. Where the landlord intends to substantially refurbish or renovate a rental dwelling in a way that requires the dwelling to be vacated for that purpose, the notice of termination must contain or be accompanied in writing by a statement specifying the nature of intended works. In the case where planning permission has to be obtained, a copy of the planning permission is attached, or that planning permission is not required, specifying the name of the contractor, if any, employed to carry out the intended works, and the dates on which the intended works are to be carried out, and the proposed duration of the period in which the works are to be carried out, the landlord is required to offer the tenant a tenancy of a dwelling if the contact details requirement is complied with, and that the dwelling becomes available for reletting by reason of the completion of the works or of refurbishment or renovation. These substantial changes were made in 2019 to strengthen the enforcement of tenancy termination protections while respecting the constitutional rights of landlords regarding their properties.

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