Private Rental Tenancies Board
Security of Tenure
Notice to Quit
Rents
Taxation
Comment
On January 5 2001 the government outlined its response to the recommendations made in the report of the Commission on the Private Rented Residential Sector.
The main issues covered were as follows.
Private Rental Tenancies Board
The Private Rental Tenancies Board will deal with disputes between landlords and tenants, and its decision will be final subject to appeals to the courts on points of law. It will be established on an ad hoc basis in Autumn 2001 and then by legislation, which is to be enacted within a two-year timeframe.
Security of Tenure
A tenant whose tenancy has not been terminated in the first six months will be given a right to continue in occupation for the remainder of a four-year period. This will be subject to certain conditions and the landlord will be able to recover possession if he falls within one of the specified exceptions. These include if he wishes to sell the property, or if he requires the property for his own or family use.
A graduated notice period according to the length of tenancy will apply, with a minimum of four weeks and a maximum of 16 weeks. This will not apply if the tenancy is being terminated for failure to comply with its obligations.
Rents may be no greater than the market rate and reviews may occur no more than once a year. This is subject to the proviso that there is not a substantial change to the nature of the rental accommodation.
The government will continue to promote investment in this sector by providing tax incentives in relation to urban and rural renewal areas. It will also extend relief for the provision of student accommodation.
It further intends to allow refurbishment and capital expenditure, in addition to routine maintenance work, to be offset against rental income tax.
The government has also taken measures to attempt to improve accommodation which was converted into flats before 1964 and where half the accommodation is available to people receiving social-welfare assistance. It will allow expenses, including interest payments, arising in the course of actively managed rented accommodation to be allowed for tax purposes. This is subject to certain conditions being met, and the stated intention is to confine the relief to committed long-term professional landlords.
While the government proposals are in general to be welcomed there has been much criticism of the delay in dealing with what many believe is a crisis in the private rented sector. The government decision to set up a commission, wait six months to comment on its report and then announce that legislation will be introduced within a two-year timeframe has been widely condemned.
For further information on this topic please contact Paul Eustace at Dillon Eustace by telephone (+353 1 6670022) or by fax (+353 1 6670042) or by e-mail ([email protected]).
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