Landlords fined for not registering

PROSECUTIONS HAVE begun against landlords who accept rent allowance payments but fail to register with the Private Residential Tenancies Board.

The board, which is examining annual payments of some €500 million to private-sector landlords, have secured seven criminal convictions against landlords in recent months.

The courts have imposed maximum fines of up to €3,000, costs of up to €2,100 and sanctions of up to 35 days of imprisonment in the event of default, for not registering with the tenancies board.

Sampling of Department of Social Protection rent allowance records by a new computer system installed by the tenancies board revealed that almost 47 per cent of landlords in receipt of rent allowance payments had not registered tenancies with the board.

Officials said data obtained by the board would also be shared with local authorities which collect the non-principal private homes levy and the Revenue Commissioners.

A spokesman for Minister of State for Housing Willie Penrose said that, in the past, the tenancies board had concentrated on raising awareness among landlords of their obligations.

The seven prosecutions taken earlier this year were the first taken by the board but many more could be expected, he said.

Landlords are required to register tenancies within one month of them being signed and to pay registration fees averaging about €200.

They are also liable to pay the non-principal private residence levy of €200 to local authorities, with penalties of €20 a month for late payment.

Landlords are also liable for income tax on rental income.

It is proposed that from next year a form of property tax is to be introduced.

Initial expectations are that this will be about €200 a unit. Issues of water charges and refuse charges generally are resolved between landlord and tenant on an individual basis.

Mr Penrose said he believed compliant landlords had nothing to fear from the crackdown over rent allowance payments.

He also proposed moving responsibility for rent allowance from the Department of Social Protection to the Department of the Environment to assist in the cross-checking of payments.

Mr Penrose also proposed to change the arrangement where payments were made to the tenant as these were often not passed on in a timely fashion to the landlord.

“You have to have balance,” he said, “it will be better for landlords too.”