Landlord "Government interference creates the moral hazard of allowing tenants pay no rent."

So says the landlord in the above case
He's certainly not the first to say it, or think it. The case speaks for itself: the tenant ran up €31,000 in arrears and faced no penalty for it. No fine, no interest, no sanction. He was simply ordered to repay what he already owed, by instalments over several years, and to leave. The "consequence" for years of not paying rent is an interest-free plan to pay it back slowly.
 
Do you honestly think property owner will see a penny of that?
I took that part as a given, to be honest! The real problem isn't just that there's no consequence, it's that the whole thing works as an enticement not to pay.

What the tenant walks away with is an RTB approved, interest-free repayment plan for arrears. In practice, this means years of housing for free.

No fine, no interest, no sanction. It's not a deterrent, it's a legislated incentive to stop paying rent.
 
Shows the importance of vetting tenants, accepting cash payment of rent rings alarm bells and leaves you exposed,

In any case it’s a given tenants can strategically decide not to pay and get Ufer no real consequences unless they pick the wrong type of landlord who will deal with things differently (but chance of this is very slim)
 
Shows the importance of vetting tenants, accepting cash payment of rent rings alarm bells and leaves you exposed,
Indeed, but I think even tenants who can pay, and who have good credentials, are faced with a perverse incentive here. It's an easy €20k-30k with no repercussions, and the structure invites a rational actor to weigh it up. No fine, no interest, no sanction applied to anyone who stops paying their rent, irrespective of their means. The worst that happens is an interest free, multi-year loan.
 
Some of you may be familiar with my situation with an apartment leased to the county council on the LTL scheme.
2 weeks ago the tenant did something really bad to one of the neighbors. MC contacted me. I forwarded the email to the coco and copied the MC on it.
MC sent another solicitors letter to me reminding me of my responsibilities and threatening legal action again. I passed that on to the coco too, who got back to me saying they are looking at it as usual. So I asked for a phone call with them. They said they were sorry but there was nothing they could do to remove the tenant. They said they are bound by the rights of the tenant and cannot remove them and the tenant dopesnt even pay the rent to them . They offered to help me take a case to remove them. I stated that I chose the LTL so that it was hands off for me and I leased to the council not the tenant so its all up to them. He apologized and said he was just telling me how it is. So I reminded him that the lease is up soon and I want that apartment back empty and in the condition they got it on that date. He will do his best. I just have to throw my hands up in the air at this point. Im going to send them a letter giving them 18 months notice that they can continue leasing for another 2 years if they dont hand the property back, but the rent will be double. Maybe that will get them in gear, but they arent interested at the moment.

I an so, so thankful that they have to pay the rent and be responsible for any tenant requests under the LTL, because if they werent they would have just washed their hands of everything and stopped paying me rent at this point.
Whatever any of you do, DO NOT use that new RAS scheme where you have to manage the tenants.

Anyway, thats a long winded way of saying, you are right, there is no comeback form either, landlords, neighbors, MCs, AHBs or even councils for tenants who play the system. Its unbelievable.
 
Im going to send them a letter giving them 18 months notice that they can continue leasing for another 2 years if they dont hand the property back, but the rent will be double.
I completely sympathise with your situation, but you should check your grounds on the above before sending?
 
Shows the importance of vetting tenants, accepting cash payment of rent rings alarm bells and leaves you exposed,

In any case it’s a given tenants can strategically decide not to pay and get Ufer no real consequences unless they pick the wrong type of landlord who will deal with things differently (but chance of this is very slim)
Vetting tenants is far from 100% guarantee.. the only 100% guarantee is not to become a landlord..

When you say 'pick the wrong type of landlord', you mean a landlord that would take matters into their own hands...
 
I completely sympathise with your situation, but you should check your grounds on the above before sending?

I know somebody who did the same. I'll be using his solicitor. The council will have plenty of notice that their lease will not be renewed at expiry except under the new terms. They can avoid this by handing back the apartment as agreed at the end of the lease.
 
Vetting tenants is far from 100% guarantee.. the only 100% guarantee is not to become a landlord..
100% agree it only mitigates the risk and tenants position/behaviours can change over time too so a tenant who was a good risk can become a bad risk
 
More and more tenants are realising that paying the rent is optional and that if you play your cards properly you can get three years or more years out of it eg. get RTB hearings adjourned because your sick.

Plus the landlord has to keep the property in good condition and comply with all maintenance and repair requests while this is ongoing.
 
The Tribunal Report indicates that the tenants are not in the country - visiting a sick relative apparently. But if they have skipped abroad, the landlord has zero chance of getting a penny of the €31k.

He also won't be able to re-enter the property with just the Tribunal Ruling if they have left some possessions in the house. He'll have to go to the District Court and Sheriff. There could be another year at least in this.
 
This landlord seems to be owed €19k by another tenant and €12k by a different tenant again from the Tribunal Reports.

It just shows the extent of what can go wrong.
 
Yes, Greenbook, you are correct…. Public view RTB dispute outcomes show multiple cases brought to RTB by landlord Martine Carolan. I rented here at this complex a good few years ago where at least four apartments were owned by this same landlord. Cash deposits were requested by Ronan Carolan, no receipt given, though promised. My neighbours were questionable characters in my opinion. Landlords need to check identity, bank and work references …..and tenants need to read the contract before handing over cash… use a professional agency wherever possible.
 
use a professional agency wherever possible
There wouldn't be much need for one if the legislation were reasonable. The reason a landlord now needs an agent isn't that letting a house is complicated — it's that the paperwork has been made a trap and the penalty for getting it wrong falls entirely on one side.

Look at what the process actually delivers when nobody even disputes it. TR0001417, published in July: tenant in eleven months, paid rent once, €16,000 owed. She accepted the figure, accepted the notice was valid and said she knew she had to leave. The Tribunal ordered her to repay the €16,000 at €200 a month — eighty months, interest-free. The final instalment falls in January 2033. Rent was €1,600, so the order recovers one-eighth of a month's rent per month, from someone who paid once.

No fine. No interest. No sanction of any kind. And the instalment clause actually makes the landlord's position worse: without it he could enforce the full €16,000 through the District Court now; with it he can't pursue more than €200 a month unless she misses one. A payment plan imposed on the creditor, for the benefit of a debtor who admitted every cent.

Meanwhile a landlord whose notice is a day out — because he followed the RTB's own published guidance — loses the notice entirely and now faces a class A fine and up to twelve months' imprisonment if he acts on it. And an agent would have made no difference there either. In TR0001481 the landlord used a professional letting agency, properly incorporated and properly notified to the tenant under s.12(1)(e). The agency followed the RTB's guidance to the letter. Both notices were void, and the no-grounds notice — 227 days, compliant in every other respect on the Tribunal's own finding — is gone permanently. Discussed here.

That's the asymmetry, and no letting agent fixes it.
 
Look at what the process actually delivers when nobody even disputes it. TR0001417, published in July: tenant in eleven months, paid rent once, €16,000 owed. She accepted the figure, accepted the notice was valid and said she knew she had to leave. The Tribunal ordered her to repay the €16,000 at €200 a month — eighty months, interest-free. The final instalment falls in January 2033. Rent was €1,600, so the order recovers one-eighth of a month's rent per month, from someone who paid once.
I think I read that Tribunal Report as well or maybe it was in one of the papers. From memory, she paid the first month's rent and deposit and that was it. She had to pay those to get the keys. She must have deliberately never paid a penny afterwards. So this wasn't a case of an otherwise reliable tenant ending up in some financial difficulty or other.

Yet this tenant faces no sanction at all other than an order to pay €200 a month which she can likely safely ignore with zero consequences.

A landlord on the other hand who makes some paperwork mistake could face jail.
 
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