Róisín Shortall (Dublin North West, Independent)
Link to this: Individually | In context | Oireachtas source

637. To ask the Minister for Environment, Community and Local Government in view of the problems associated with banks appointing receivers to repossess the rental property of landlords who are no longer able to afford mortgage repayments, with the consequence that existing tenants are displaced from their home, if consideration has been given to instructing banks to appoint rent receivers in order that tenants can remain in situ in such cases. [15541/15]

Paudie Coffey (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The grounds upon which a tenancy in the private rented sector may be legally terminated are set out in the Residential Tenancies Act 2004. The Act sets out the procedures and notice periods that must be complied with when terminating a tenancy and these apply whether or not a receiver is in place. While the circumstances of each case may vary depending on the terms of the mortgage or charge under which a receiver is appointed, the appointment of a receiver cannot affect the statutory or contractual rights of tenants under the Act.

In 2013 the Irish Banking Federation (IBF) published a guide to receivership for residential tenants. The guide explains that where a receiver is appointed to a rented residential property, the rent should be paid directly to the receiver and that a receipt should be given by the receiver to the tenant. The guide also advises tenants to contact the receiver in the first instance regarding requests for repairs to the property. This guide is a useful contribution to a clearer understanding of the relationship between receivers and residential tenants.

Through the Residential Tenancies (Amendment)(No. 2) Bill which is currently before the Oireachtas, I intend to introduce an amendment to the Residential Tenancies Act that will help to bring greater clarity in this area and will be of benefit to tenants and receivers alike. This will provide that where a person is appointed as a receiver to carry out the functions and exercise the powers of a landlord under a tenancy, that person will be considered to be the landlord for the purposes of the 2004 Act.

The appointment of a receiver and decisions around the type of receiver to be appointed are commercial matters for the bank or financial institution concerned and it would not be appropriate to interfere in that process.