Residents say they are ‘in limbo’ after rent debacle
By Aideen O'Flaherty
RESIDENTS of a Tallaght apartment block have been left “in limbo” after being told that a planned 6 per cent rent increase has been withdrawn, as it was issued ahead of the 12-month window that is legally required to be adhered to for issuing rent reviews.
Tenants in New Bancroft Centre in Tallaght are now unsure if the rent increase will instead be issued at a later date, and there is anger around the 6 per cent rent increase as the landlord of the development, the DAD Property Fund, has previously received €8m in funding from the government.
Joey Barrett, a New Bancroft Centre resident
The apartments are located in a Rent Pressure Zone, which means there is a 4 per cent cap on the amount by which rents can annually increase – but this cap does not apply to properties that are new to the rental market or have not been occupied in the last two years, like New Bancroft Centre.
Joey Barrett, a New Bancroft Centre resident, told The Echo: “When we received the rent review our initial reaction was one of shock, because we thought, ‘How can they put the rent up and demand that you have to pay within 12 months [of starting your tenancy]?'”
MD Property Management, acting on behalf of the property’s landlord, have since withdrawn the rent review notices that they issued to New Bancroft Centre tenants, but residents are unsure of what will happen in the coming months.
“We’re in limbo,” said Mr Barrett. “We’re waiting for the landlord to come back with a binding tenancy agreement, and from there we will start negotiating.
“If the rent increase goes above 4 per cent we’re going to continue fighting against it.”
When the government introduced legislation for Rent Pressure Zones in late 2016, they stated that the two-year gap for new buildings to not be required to adhere to the 4 per cent cap was to encourage the development of residential properties in these in-demand areas.
Carly Bailey, the Social Democrats general election candidate for Dublin South West, said: “Fine Gael keeps telling us that their housing plan is working and they are doing everything they can to tackle the housing crisis and reduce homelessness.
Weak legislation in place
“It is very clear in Dublin South West and around the country that this is simply not the case. With such weak legislation in place, they are actively contributing in making the situation even worse.
“The people of Tallaght and Dublin South West are already struggling to find affordable rental accommodation and hard-pressed families and individuals should not be placed under any further avoidable burden.”
A spokesperson from the Department of Housing told The Echo that the two-year window where new rental properties don’t have to adhere to the 4 per cent cap “is necessary to encourage new landlords into the rental market to ensure a sustainable supply of rental properties”.
The spokesperson added that the government approved the priority drafting of a Residential Tenancies Bill last April, to strengthen the enforcement of the caps and to make it an offence for landlords to break the RPZ rules, and the bill is targeted for publication during the current Oireachtas term.
A spokesperson for MD Property Management said: “We are committed to delivering well-managed accommodation to residents with whom we wish to build long-term relationships.
“Since becoming aware of the Residential Tenancies Board’s position on lease renewal dates, we have written to all residents who received incorrect renewal notices, and have apologised for the error.”
