Two months deposit requested by Ireland’s largest private landlord
The country’s biggest private landlord, Ires Reit, is asking tenants for two months rent upfront as a deposit on their properties.
The company, which owns 2,400 apartments around Dublin, adds to the rapidly growing financial pressure on people looking to rent in the private sector.
Ires Reit charged an average of around €1,500 a month in rent on its property portfolio, according to figures published last year. For tenants, that means finding over €3,000 to pay up-front as a deposit along with about €1,500 in rent for the first month before moving into their home.
And rents are rising, especially in the capital. Ires Reit announced recently that two-bed apartments in its new Maple development in Sandyford, south Dublin, are being rented at €2,570, with one-bedroom apartments costing €1,950.
Many of properties owned by institutional landlords operate at the higher end of the rental market. Ires Reit, an offshoot of Canadian investment group Capreit, said it was “not aware of other landlords’ policies in this regard”.
However, this standard industry practice has come under pressure, with more landlords seeking higher deposits, following the example set by their institutional counterparts, the Irish Property Owners’ Association (IPOA) confirms.
This trend means up-front costs for tenants have increased, but the length of time it takes to resolve arrears cases was motivating landlords to seek a bigger cushion. Tenants should by law be given 14 days warning notice to catch up with arrears. If the property is not vacated, the dispute can then be taken to the Residential Tenancies Board for mediation, but this process can also take some time.
Security deposits should be returned promptly to the tenant at the end of a lease, although landlords may make deductions for damage to the property above normal wear and tear.