Written answers

Wednesday, 15 April 2015

Department of Environment, Community and Local Government

Private Residential Tenancies Board

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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821. To ask the Minister for Environment, Community and Local Government the issue of a private dwelling eviction case (details supplied) which has been referred to the Private Residential Tenancies Board as a dispute over rent increase; the rental market percentage increase in the past two years and whether it is well short of 47%; the procedure for a tenant who is faced with an excessive rent increase; the timeframe it takes the board to adjudicate on a rent increase dispute case; what happens in the meanwhile; if the existing rent will continue; if an agreed increase is implemented; if the board provides a guidance on what a temporary increase should be; the minimum notice period for a tenant of two years' duration; if a landlord issues a notice of termination while a dispute on a rental increase of 47% is being processed by the board; the way the system can handle a landlord of many properties acting unfairly who issues a termination notice just because a request for a 47% rent increase is referred to the board; and if he will make a statement on the matter. [14822/15]

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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The Residential Tenancies Act 2004 regulates the landlord-tenant relationship in the private rented sector and sets out the rights and obligations of landlords and tenants relating to, inter-alia, security of tenure, termination of tenancies, rent and rent reviews. The 2004 Act provides that rents may not be greater than the open market rate and may only be reviewed upward or downward once a year unless there has been a substantial change in the nature of the accommodation that warrants a review. Tenants must be given 28 days’ notice of new rent and can make an application for dispute resolution to the Private Residential Tenancies Board (PRTB) where they feel the rent increase is in excess of the market rent. These provisions have effect notwithstanding any provision to the contrary in a lease or tenancy agreement. The PRTB, as an independent statutory body, will adjudicate each dispute on its own facts and merits, and may grant redress and give specific direction as appropriate on foot of a determination. In May 2013, the PRTB launched a national rent index available at . Compiled by the ESRI and based on the PRTB’s own register of over 300,000 tenancies, this valuable source of information indicates the actual rents being paid for rented properties throughout the State. The rent index is updated quarterly and shows the percentage change in rents over the previous quarter and over the previous twelve months.

Section 86(1) of the 2004 Act provides that pending the determination of a dispute that has been referred to the Board, the rent payable under the tenancy continues to be payable and, if the dispute relates to the amount of rent payable, no increase in the amount of the rent may be made. This does not apply if, where awaiting the outcome of the dispute case, the parties agree to payment of the rent being suspended or if they agree to an increase in the amount of the rent being made. Subject to section 86(2), section 86(1) also provides that a termination of the tenancy concerned may not be effected pending the determination of a dispute.

Security of tenure under the 2004 Act is based on rolling four-year tenancy cycles. Where a tenant has been in occupation of a dwelling for a continuous period of 6 months and no notice of termination has been served in respect of that tenancy before the expiry of the period of 6 months, the tenancy is established for the remainder of the four year period. This is referred to in the Act as a ‘Part 4’ tenancy. Landlords and tenants may not contract out of any of the provisions of Part 4 of the Residential Tenancies Act and no lease, tenancy agreement, contract or other agreement may operate to vary or modify the provisions of Part 4 of the Act.

A landlord may not serve a notice of termination except in very clearly defined circumstances set out in the Act, such as a failure by the tenant to comply with his or her obligations in relation to the tenancy. Notice periods for the termination of a tenancy by the landlord vary depending on the duration of the tenancy but periods of up to 112 days are provided for under section 66 of the Act. Where there is a dispute regarding the appropriate period of notice to be given in respect of a tenancy or the validity of a notice of termination, or where the tenant does not comply with the notice of termination, the dispute may be referred to the PRTB for resolution.

According to the PRTB Annual Report for 2013, adjudication processing times were an average of 7 months in 2013 compared to 12 months in 2012.For 2014, I understand adjudications were taking an average of 5 to 6 months to process. Late 2013 also saw the introduction of a pilot telephone mediation service as an alternative means to address disputes. Processing times for mediation cases are typically 10 to 12 weeks.

Having regard to the quasi-judicial nature of the work of the PRTB, it would be inappropriate for me to comment on the specifics of any individual case.

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