- Campaign for a Deposit Protection Scheme (DPS) supported by over 1,000 petition signatures
- 94% of deposit retention disputes in latest RTB (Residential Tenancies Board) data showed the landlord acting unlawfully
- Proposed DPS Bill would establish a third-party custodial model at no extra cost to landlords or tenants
Today, national housing charity Threshold presented a draft bill for the establishment of a Deposit Protection Scheme (DPS) to TDs and Senators in Leinster House.
The campaign for a Deposit Protection Scheme, which is running in collaboration with student unions across the country, highlights the issue of unlawful deposit retention in the Irish rental sector. According to the most recently available 2021 RTB data, in 94% of deposit retention disputes, landlords were found to have acted unlawfully.
Commenting on the issue of unfair deposit retention, Threshold’s National Advocacy Manager Ann-Maire O’Reilly said:
“The unlawful retention of rental deposits is a well-documented issue, and one with a proven solution, that is already in operation in other countries like the UK. Currently, too many renters in the private sector here are having their deposits unlawfully retained and no renter can afford to lose their deposit. A fair and balanced legal Deposit Protection Scheme would remove uncertainty and stress for renters and landlords alike.”
A Deposit Protection Scheme would mean deposits are lodged with an independent third party ensuring their prompt return to a tenant at the end of a tenancy unless a bona fide issue arises. Where a landlord needs to claim expenses at the end of the tenancy, they would have to provide proof of expenses to retain some of the deposit, which would ensure greater transparency.
Threshold’s campaign has already gained widespread support. Between March and April, the charity – in collaboration with Unions of Students Ireland (USI), University College of Dublin SU (UCDSU), Dublin City University SU (DCUSU), Dún Laoghaire Institute of Art, Design & Technology SU (IADTSU), Technological University of the Shannon SU (TUSSU) and University of Galway SU (CnMLOG) – collected over 1,000 signatures in support of the a Deposit Protection Scheme during several Renters’ Rights days that were held on college campuses across the country.
A campaign report, produced by Threshold, highlights testimonials from renters and reveals repeated incidents of deposits being unfairly withheld with little – or in some cases – no proof provided.
Vice President for Campaigns at the Union of Students Ireland (USI), Nathan Murphy said:
“Students are among the most vulnerable renters as it is often their first time renting. Each year, we see students who have had hundreds – and sometimes thousands – of euro in deposits retained by landlords or management companies. Unfortunately, proof is rarely provided to the student that would explain why they did not receive their full deposit back, or sometimes the students are ‘ghosted’ by their landlord. A DPS would bring much needed protection for student renters”.
Threshold’s proposed legislation calls for a custodial, self-funded, not-for-profit scheme in which deposits would be lodged with an independent third party for the duration of the tenancy. The proposal, if implemented, would mean that:
- There would be no cost for landlords or tenants to participate
- Landlords would be required to provide clear proof when seeking to retain deposits
- There would be defined timelines for repayment
Senator Laura Harmon, Threshold Board member, commented on the DPS Bill:
“We know from international experience that DPS models work, as seen in the North and across the UK. They create transparency and trust in the rental sector and protect renters by recovering what is rightfully theirs. Deposit retention is not an unsolvable problem. A proven solution exists and now we need the political will to implement it”.
Threshold is urging TDs and Senators to use their voice to draw attention to this solution. If implemented, a Deposit Protection Scheme would be of benefit to the private rental sector, ensuring greater transparency for landlords and tenants.
Case study: Saige’s Story
Saige moved to Ireland in August 2020 for her postgraduate degree. While quarantining after her arrival, Saige found a private room online through her university’s accommodation website and moved into the home as soon as her quarantine period was over.
Unfortunately, Saige faced several challenges while renting this accommodation, including issues with mould, poor transparency around bills, and a landlord that would come by the property unannounced. Saige tried to resolve these issues with her landlord, particularly as she had asthma and was conscious of the dangers that mould presented.
She also discovered that she and her housemates had been overcharged for bills for at least one of the months she lived there. Despite her attempts to rectify the issues with her landlord, there was no resolution and Saige decided to leave the property.
She left halfway through her notice period as she had sourced a new home relatively quickly, but she was aware that she would be liable for the rent until the end of her notice. When her notice period was over, Saige made several attempts to contact her landlord to negotiate her deposit, the remainder of the rent due, and resolve the overpaid bills. It took weeks to hear back from her landlord, and it took two months for Saige to have her deposit finally returned. This challenging process added significant stress to her life and experience in Ireland as a full-time student trying to complete her postgraduate degree.
Had a third-party custodian been in place to hold the deposit, this process would have been managed swiftly, and both parties’ obligations and rights would have been clear.
