LANDLORDS WILL face fixed fines of several thousands of euro if they illegally retain tenants' deposits, under new legislation governing tenancy disputes, The Irish Timeshas learned.
The legislation amending the current Residential Tenancies Act will also allow for the eviction of tenants who withhold rent during disputes with landlords.
Minister of State for Housing Michael Finneran will today present the proposed changes to the Act to the recently appointed board members of the Private Residential Tenancies Board, which adjudicates on tenant/landlord disputes. Almost half of all disputes referred to the board involve the refusal of landlords to return deposits at the end of a tenancy, while one-fifth are taken by landlords seeking rent arrears.
Currently, if the board determines that a landlord has illegally retained a deposit, it can order the landlord to pay a small sum in damages to the tenant in addition to the return of the deposit. However there is no mechanism for imposing fines.
Mr Finneran is proposing the introduction of fixed fines, likely to be three times the amount of the deposit, where a finding goes against the landlord. With deposits generally amounting to a month’s rent, errant landlords will generally face thousands of euro in fines.
The board has, since it was set up five years ago, consistently complained that deposit-retention cases were a significant drain on its resources, in addition to having serious financial consequences for tenants.
Earlier this year it told an Oireachtas environment committee that it was aware that tenants may be exploiting the delays in processing disputes to remain in accommodation without paying rent. The dispute resolution process can take more than 12 months.
The new legislation will provide scope for the legal termination of a tenancy where tenants have stopped paying rent during a dispute and will stop tenants from withholding rent as leverage in any disagreement with their landlord.
Mr Finneran also intends to make a six-month limit for resolving disputes a statutory objective of the board.
The proposals are likely to be met with a mixed reaction from tenants advocacy groups. While the fines against landlords will be welcomed, it is understood that Mr Finneran is not minded to implement a proposal by housing agency Threshold to have all deposits held by the board instead of landlords.
There is also likely to be concern over proposals to evict tenants who are withholding payment of rent because they believe their landlord to be in the wrong in relation to a tenancy dispute.
The legislation is due to come before the Oireachtas next year.
