The government was quick to reassure the public that as a result of their enforced lockdowns and associated restrictions on movement, that renters would be protected from eviction should they fail to meet their financial obligations due to loss of earnings due to the pandemic.
Of course, no one would argue that this is not the right thing to do, of course people need certainty wherever they can get it at the moment and at least knowing the house isn’t going anywhere is something.
However, the same protections are not currently afforded to landlords and other property owners.
The Irish Property Owners’ Association – the national landlords association – has stated that it accepts and understands the need to protect vulnerable tenants who meet the self-declaration criteria. However, there is also a need to protect the providers of accommodation.
Recently, Stephen Faughnan – Chairmanof the IPOA – said “In cases where tenants have been protected at the expense of their landlord and the rent arrears are not repaid, IPOA are calling for the landlord to be allowed to offset the arrears as an expense in their tax return reducing the financial cost to the landlord. This would help vulnerable tenants and landlords. The Residential Tenancies and Valuations Act protects non-paying tenants without protecting the providers of accommodation. This is not fair or equitable. There is emergency assistance for tenants whose income has been reduced but none for landlords. It is unsurprising that 3800 landlords left the sector in 2020, reducing the number of tenancies by 4800. The role of the private rental sector is essential in the provision of housing and should not be contracting”
Mr. Faughnan makes a valid point, in that if things continue as they are, more and more investors will jump ship and tenancies will reduce, thereby exacerbating an already precarious housing situation in Ireland.
The situation is far from perfect and far from over. The threat of further lockdowns and a return to 5km restrictions on movement (which automatically sees the eviction moratorium kick in) mean that this situation needs to be remedied as soon as possible before an already battered housing market takes more collateral damage.
If you are currently seeking advice as a property owner regarding the current situation, please don’t hesitate to give KPM Group a call today and we’ll be happy to assist you wherever possible.
