I.P.O.A - Irish Property Owner's Association

Welcome to the Irish Property Owners' Association (the National Landlords Representative Association) website.

The Irish Property Owners' Association seeks to protect and promote the interests of private residential landlords and encourage the supply of good quality accommodation and professional standards of management.

This site sets out to provide information for the Association's members, landlords, prospective members and related organisations. For information on the Association, how to join or contact us, up-and-coming general meetings, the services we provide, recent legislation and other news and items of interest, use the links below or on the side. While we do everything in our power to provide accurate information this is a general guide only and not an interpretation of the law.

Telephone:- 8276000 Address: Ashtown Business Centre, Navan Road, Dublin 15.

Landlords Call for Market Rent - No Less! No More!

In excess of 500 landlords at an Irish Property Owners Association members meeting in Morans Red Cow Hotel Dublin last night called for the Government to pay market rent for Rent Supplement tenants.

Stephen Faughnan, IPOA Chairman, outlined the distrust that property owners have in accepting Rent Supplement tenants, as the rents are being set by Government rather than the market. This may be contrary to the rules of free competition as laid out by the Competition Authority. Market rent is defined by law in the Residential Tenancies Act 2004. We do not want to see a situation where tenants are forced to find alternative accommodation. Minister Burton is effectively attempting to reduce market rents without any consultation with landlords or tenants.

The room was packed with well intentioned property owners who now face nothing but problems in keeping going, due to the continual assault by Government with various specific taxes and levies payable by them but which, some or all may be passed on to tenants.

Stephen Faughnan said “landlords should be seen as partners with the Government in providing for the accommodation needs of a large segment of the population. Members are at a very low ebb and are aligning themselves to take action to save their properties, to the extent that a collective default could be used as a solution.”

Guest speakers:- Tom O’Brien IPOA (Sub Committee on Economic Assessment) Partner Mazars - Update on Section 23 & Budget Measures.
T. G. Quinn LIB & P. A. Wynne FCCA, QW Financial Solutions - Financial difficulties, non-performing loans, negotiating solutions, banking issues.

Owners not occupiers will be liable. Every unit in a house of multiple occupation is liable. (This is liable per bedsit)

Monies raised will be paid into the Local Government Fund and will be allocated back to local authorities by the Minister in General Purpose Grants.
The liability date will be 1 January in 2012 and subsequent years and households not availing of instalment arrangements will have three months to pay. Late payment penalties and late payment interest of 1% per month or part thereof will apply thereafter.
Late payment fees, calculated as follows, will apply in the case of a household charge paid
not later than 6 months after the due date, 10 per cent of the amount outstanding,
later than 6 months and not later than 12 months after the due date, 20 per cent of the amount outstanding, or
later than 12 months after the due date, 30 per cent of the amount outstanding.

Collection Arrangements:
Collection by LGMA (Local Government Management Agency) by post or website (once off or instalment by direct debit four times a year).
Main overriding principles
Self declaration basis
Administration costs to be kept to a minimum
Late payment penalties

Exemptions:
Residential Properties that are part of the trading stock of a business (not sold or not having generated an income)
Social housing, including voluntary and cooperative housing units
Residential properties owned by Government/Health Service Executive
Residential properties owned by a charity
Residential properties to which commercial rates apply
Where a person is forced to leave their dwelling due to long-term mental or physical infirmity (elderly person that has moved into a nursing home)

Waivers:
Those in receipt of mortgage interest supplement on the liability date.
Those in certain unfinished housing estates to be prescribed in 2012 and 2013 by the Minister

The Competition Authority has approved the following statement in the Clarification Notice published below:- “the relationship of landlord and tenant is a matter of contract between the parties and it is for the parties to any letting agreement to agree between themselves its terms, including the settlement of any charges levied to fund local services.”

“To pay and discharge Rates in respect of the Premises and to pay and discharge all applicable charges in respect of any Services used or consumed on the Premises without prejudice to the foregoing to pay and discharge charges for any additional service whether specified in the definition of Services or not which is or which may be rendered by a local authority in respect of the premises and to indemnify the Landlord against any charges which are or which may be payable by him in respect of the premises during the period of the Lease.”

As the representative body for landlords, the IPOA will continue lobbying the Government and the Opposition to ensure that the "user pays" principle is adhered to in all cases involving any charges to fund local services.

CLARIFICATION NOTICE ISSUED AT THE REQUEST OF THE COMPETITION AUTHORITY

In order to comply with Section 4, Competition Act 2002, and Article 101, Treaty on the Functioning of the European Union, and following representations received from the Competition Authority, the IPOA wishes to state clearly that it is a matter for IPOA Members to make their own business decisions, independently of each other, on the new Household Charge and any other charges which are levied to fund local services. The recommendation made by the IPOA to its members that they should pass on the Household Charge to tenants is therefore superseded by this statement.

The relationship of landlord and tenant is a matter of contract between the parties and it is for the parties to any letting agreement to agree between themselves its terms, including the settlement of any charges levied to fund local services.

House Hold Charge of €100 to be levied on all properties in the state. This is expected to be brought in on same basis of as the NPPR and liable per dwelling as an interim measure. This charge is expected to be increased in subsequent budgets and will in time be based on the value of the dwelling.

The Minister for Finance has decided not to proceed with the proposals put forward by the previous Government in last year’s Budget on the Legacy Property Tax Reliefs. The impact assessment report concludes that reliefs to small scale investors should not be restricted but that there is scope for larger investors to contribute more. The Government also believes that large scale investors in property that attracts tax reliefs can and should make more of a contribution.

A property relief surcharge of 5 per cent will be imposed on investors with an annual gross income over €100,000. This will apply on the amount of income sheltered by property reliefs in a given year. More details click here

Reliefs in Section 23 type investments will not be terminated or otherwise restricted for investors with an annual gross income under €100,000 as these are at the greatest risk of insolvency. Investors in Accelerated Capital Allowance schemes will no longer be able to use any capital allowance beyond the tax life of the particular scheme where that tax life ends after 1 January 2015. Where the tax life of a scheme has ended before 1 January 2015, no carry forward of allowances into 2015 will be allowed. The delayed implementation of this measure gives individuals time to adjust. Full details will be in the Finance Bill.

Changes are being made to the Rent Supplement scheme to achieve savings of €55 million in 2012. The minimum contribution that single tenant’s make towards their rent will increase by €6 going up from €24 to €30 per week. The minimum contribution payable by couples will be €35 per week. The Department of Social Protection will be revisiting the rent limits in 2012 which is intended to reflect levels of rent in a particular area.

The Stamp Duty rate for commercial property transfers will be reduced from 6 per cent to a flat rate of 2 per cent in respect of all non-residential property, including farmland as well as commercial and industrial buildings. The current stamp duty arrangements for residential property will continue to apply with 1 per cent on transactions up to and including €1 million and 2 per cent thereafter.

Capital Gains Tax incentive for property purchased between now and the end of 2013. If a property is bought during this period and held for at least seven years, the gain attributable to that seven year holding period will be relieved from Capital Gains Tax.

Chairman of the IPOA, Stephen Faughnan called on the Government “to extend the hand of friendship to the private rental sector as they provide over 600,000 people with homes. 92,000 avail of rent supplement, the responsibility of the State to house, but the State are unable to provide this accommodation. We need balance; not another blow which, will no doubt banish investors. Will there be a private rental market in 5 years?”

Submission Made to Joint Oireachtas Committee on Environment, Transport, Culture and Gaeltacht

The IPOA made a submission made to the Joint Oireachtas Committee on Environment, Transport, Culture and Gaeltacht on Tuesday 4^th October.

As is obvious from the submission the IPOA do not see a necessity for the introduction of a Deposit Protection Scheme. Simply, all we need is a change in the Residential Tenancies Act 2004, to allow the Appeals Process in the case of disputes on deposits to be seven days, rather than the current 21 days . This will allow the PRTB to expedite the process of hearing deposit retention cases and decide upon the outcome within 7 days of the notification and have an appeal mechanism available within another 7 days. We would urge you to lobby your public representatives on this situation. To read the submission Click Here.

The Irish Property Owners Association (IPOA) conducted a survey of its members in connection with the legacy property reliefs, particularly Section 23 & 50 relief. The results were collated and summarised in our impact assessment submission document to the Department of Finance submitted by 29 July 2011.

Mazars, an independent accounting and consulting firm based in Dublin and Galway, managed the survey process and all information submitted by respondents was aggregated prior to publication i.e. it is not possible to identify any particular individual or business in the results.

Marie Barr from Barr Pomrey Accountants compiled the submission on behalf of the IPOA, including the information received from the survey and from individual members and a comprehensive document was submitted outlining the damaging consequences of the proposed measures.

The Minister for Finance, Michael Noonan, T.D., has initiated a public consultation as part of an economic impact assessment of the potential effects of amending, curtailing and/or abolishing the legacy property-based tax reliefs.

The purpose of this consultation is to consult with all parties on how the impact assessment should proceed in determining an appropriate policy approach to the legacy reliefs. There are a wide range of issues that could potentially influence the final outcome of the impact assessment. The Department of Finance is keen to hear from all parties on these matters at an early stage. Comments on potential policy approaches that could be adopted, methodologies that may be used in the assessment and possible data sources that might be relied on are all welcome.

Interested parties are invited to respond to the consultation paper. The closing date for responses is 29 July 2011. Full details on how to make a submission and a list of the consultation questions are set out in the consultation paper attached.

On 8th July 2010 Minister Finneran signed Statutory Instrument No. 357 of 2010 into Law amending the existing Rent Book Regulations. These are slight changes but are important. Landlords ensure that when letting your rent book complies with these regulations. These changes are:-

IPOA Lobbying Successful - Long Equity Leases

The right of a tenant to apply for a long equity lease has been abolished from the 1st September 2009. The IPOA fought for its eradication on behalf of all landlords at the Commission and this was included in the Residential Tenancies Act 2004.

This entitlement under the Landlord and Tenant (Amendment) Act 1980 caused major difficulties for both property owners (landlords) and tenants. Property Owners had to terminate long term tenancies before they reached 20 years to prevent losing control of the property.

If a tenant remained in the property for over 20 years they could apply for a long equity lease which allowed them a renewable lease up to 35 years. This caused difficulties if the property owner needed to sell and reduced value of the property.

The Local Government (Charges) Act 2009 introduces a €200 charge for non principal private residences.

This €200 charge on second homes and rental properties was announced in the Budget in October 2008 but the draft legislation was not published until June 2009.

This is designed as a self assessment piece of legislation and property owners are expected to contact their Local Authority or pay on the website www.nppr.ie themselves, they will not be billed. For every month that this is not paid, property owners will incur a penalty of €20. This means that you could incur a fine of €240 in a 12 month period. The first date for this payment was the 30^th September 2009 and then 31st March 2010.

The payment is due again on the 31^st March 2011. The legislation allows for a review of the amount of the charge by the Minister which is linked to the Consumer Price Index. Properties let under the Rental Accommodation Scheme (RAS) are exempt from the payment of the charge.

“For the purposes of this Act, a bedroom, forming part of a residential property, that is let under a letting arrangement whereby the individual occupying that bedroom is entitled to share with any other individual any other accommodation, amenity or facility in the property is not a residential property, but the building of which it is a part is.”

This legislation is unfair and unbalanced, it takes no account of ability to pay, or value of property, the IPOA published an article in the Independent on the 10th July 2009 outlining these points. click here

The IPOA is delighted to welcome the publishing of the Multi-Unit Developments Bill 2009, this is long awaited and of great interest to our Members. To see a copy of the Multi-Unit Developments Bill 2009 click here.

The Supplementary Budget recently brought in changes to the rent supplement scheme. To see details of these reductions click here

Where does this put people who have entered fixed term leases where market rents prevail?

The Residential Tenancies Act 2004 does not allow the rent to be varied more than once a year and not at all in the first twelve months of a tenancy. The rent control measures being implemented by the Department of Social & Family Affairs will cause a build up of rent arrears cases for the PRTB and ultimately cause people to lose their homes. E.g. the current cost for a two bedroom apartment for a couple would average €1,200 per month. Rent supplement is now €806, a balance of €394 which is some 33% deficit on market rent. Buy to Let Investors cannot and will not enter into arrangements such as these.

The Minister for Housing has revised the minimum standards regulations for the rental accommodation sector. The new revised standards address a range of issues such as sanitary facilities, kitchen facilities, heating, ventilation, lighting, refuse facilities and fire safety.

To view the Housing (Standards for Rented Houses) Regulation S.I. No 534 of 2008 news standards click here

The technical guidance document issued by the Department of Environment Heritage and Local Government can be viewed here.

SEI - Sustainable Energy Ireland have a Pilot Grant Scheme to improve energy efficiency in houses. Grants are being given of up to €2000 to make homes more energy efficiency. See the energy section on our website.

The Irish Property Owners Association welcomes court decision on rent arrears, long threatening comes at last. In a recent court decision, a tenant who owed approximately €60,000 to a landlord has been ordered to pay all arrears completely by October failing which a custodial sentence may be handed down plus costs. IPOA are very pleased that the PRTB in one of the first cases of its kind have been successful in having this judgement handed down. Thousands and Thousands are being lost by landlords on a daily basis as a result of non payment of arrears of rent and hopefully this will be a start of a new beginning in landlord’s quest to recover rent arrears.