Michael McGrath (Cork South Central, Fianna Fail)
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220. To ask the Minister for Finance if he will provide details, for each of the covered institutions, the number of rent receivers appointed to date in 2013 in respect of buy to let properties; the number of buy to let properties affected by such appointments; the number of rent receivers expected to be appointed over the remainder of 2013; if he will provide details of the operation of the rent receivers; the impact of the tenants concerned; if he has any policy on the appointment of rent receivers; and if he will make a statement on the matter. [23007/13]

Michael Noonan (Limerick City, Fine Gael)
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I can inform the Deputy that under the terms of the Relationship Frameworks that govern the relationship between the Minister for Finance and the covered institutions, the Board and Management team retain responsibility and authority for determining the banks' strategies and commercial policies and conducting their day-to-day operations. The appointment of rent receivers to buy to let properties is a day-to-day operational decision for the Boards and Management teams of the covered institutions.

The covered institutions have provided me with the following details regarding their use of rent receivers.

PTSB

- Permanent TSB has appointed 1 Receiver of Rent (Receiver) in the year to date in respect of Buy-to-Let (BTL) properties.

- 10 BTL properties (on 1 account) have been affected by this appointment in the year to date.

- The bank's Receiver Strategy for its BTL portfolio is centred on a case by case analysis. Appointments are made where it is deemed to be the most appropriate outcome for both the customer and the bank. The appointment of a Receiver is currently pending on 29 BTL properties (14 accounts). A forecast for 2013 is not advisable.

- A Receiver is appointed by the bank and operates as an agent of the borrower, assuming the role of property landlord in many respects. The Receiver collects rent from the tenant(s) and passes it to the bank, together with attending to any property related issues the tenant may have (in accordance with the Lease Agreement). The appointment of a Receiver should not negatively impact the tenant(s) as the Receiver effectively steps into the shoes of the landlord. The appointment is more likely than not to benefit a tenant as maintenance issues/concerns are more more likely to be attended to in a timely manner.

AIB

In the year to date 2013 the number of rent receivers appointed by AIB in respect of buy to let properties is in the low single digits. The number of properties affected by these appointments is not tracked as rent receivers are appointed at a customer level rather than on a property basis. Currently, AIB has no specific targets for the number of rent receivers expected to be appointed over the remainder of 2013. The appointment of a rent receiver has no impact on the tenants.

BOI

In our 2012 Annual Report we disclosed a number of 1,100 rent receiver cases. This included formal appointments in place and appointments pending at end December 2012. We will give a market update on numbers at the time of release of our interims and cannot speculate for the remainder of 2013.

- The receiver notifies the tenant of their appointment and requirement to pay rent to the receiver.

- Any issues relating to the property, e.g. repairs will be dealt with by the receiver.

- The tenant is not required to leave the property unless the minimum notice period based on their rights as tenants has been provided.

- The main impact on a tenant is that they pay their rent to the receiver and not to the landlord. The receiver will write to them to make that clear. In general the rights of the tenant under his or her lease and under legislation are not affected.