People in receipt of welfare are being discriminated against when looking for accommodation, according to Threshold, the housing agency.
Because landlords are not willing to sign a monthly rent review form for such tenants they are facing an accommodation shortage.
Of four accommodation agencies in Galway contacted by phone, three refused "on landlords' orders" to accept those on social welfare. Only one accommodation agency said: "Of course we do accept rent cheques from those receiving welfare."
According to Ms Deirdre Murphy of Threshold, "landlords who are not willing to sign rent review forms are discriminating against the unemployed".
Accommodation agencies in Galway confirmed that many landlords will not accept rent cheques because they argue they will not receive the full rent from the tenant. Ms Murphy rejected this claim. "The argument that landlords may not get paid is not viable, as the health boards can post the cheques directly to the landlord."
Landlords won't accept those on social welfare for a number of reasons, among them the fact that "landlords may not be declaring their extra income to the Revenue Commissioners", Ms Murphy said.
"I had one landlord admit to me that it was not that he could not sign a rent review form for a tenant in receipt of social welfare, but that he didn't want to, on account of the tax implications."
By law landlords are not obliged to accept rent cheques from tenants; however, they are required to provide the tenant with a comprehensive rent receipt. Under the Rent Book Regulations Act 1993 the local authority has the power to enforce the law. However, according to Ms Murphy, "not one person has been prosecuted since the establishment of the Act.
"The only way this problem can be rectified is if the relevant local authority enforces the law. If the law were enforced, as it should be, then a comprehensive rent receipt would be given to the tenant, eliminating the need for an additional rent form for the health board."