RTB: "Landlords could use retrofitting scheme to end tenancies"

[Brendan Burgess]

Landlords could use retrofitting scheme to end tenancies, says tenancies board

500,000 homes to be retrofitted by 2030 under plans to boost home energy efficiency

www.irishtimes.com

The Government’s new retrofitting scheme could become a “problem” as landlords may use it as a reason to end tenancies, the Residential Tenancies Board (RTB) has told the Dáil’s Public Accounts Committee.
...
Landlords can end tenancies if they plan to carry out a “substantial refurbishment” of the property. There is also an exemption available from the rules limiting rent increases in rent pressure zones (RPZ) if the landlord plans to make a “substantial change” to the property, including substantially improving its Building Energy Rating.
...
The RTB later told the Irish Times that landlords can end tenancies if they want to carry out significant refurbishment but they must satisfy a number of criteria.

These include stating if planning permission is required and the duration of the proposed works, and the notice of termination must contain a certificate from a registered professional stating that the proposed work poses a threat to a tenant’s health and safety.

It said that once the works are complete the landlord must offer the property back to the original tenant.

 

[NoRegretsCoyote]

It's a bit moot. The process is so bureaucratic and there is not much tax or rent benefit for a landlord from a deep retrofit.

Landlords will either sell up or just progressively let their properties decay. Things will return to about 1997. Funds will be the only professionals (bedsits totally gone) and the rest of the stock will be kind of accidental: someone moving abroad, inheritance, etc. Rentals will be poor quality, expensive, and hard to find.

 

[The Horseman]

Completely agree. If I can't increase the rent to compensate for the additional cost there is reason to incur extra cost for no return.

 

[Leo]

You have to make a significant change to the energy rating to satisfy the criteria for a 'substantial change'. Should they not be championing this as an opportunity to improve the rental stock or are the satisfied with renters also getting hammered by high energy prices in our most inefficient buildings?

I suspect it's only a matter of time before the legislation governing the minimum standards for rental accommodation will be expanded to include a minimum BER rating where applicable.

 

[NoRegretsCoyote]

You have to make a significant change to the energy rating to satisfy the criteria for a 'substantial change'. Should they not be championing this as an opportunity to improve the rental stock or are the satisfied with renters also getting hammered by high energy prices in our most inefficient buildings?

Totally - tenants pay bills too!

The average small-time landlord doesn't have the capacity to retrofit a rental property and they payback time is very long especially given BTL rates. Rental stock will just decay slowly. If there is a minimum BER for new rentals it will just accelerate the flight of landlords even more.

This is, ironically, where funds will be much better landlords. They will maintain and upgrade quality in their units much more systematically.

 

[T McGibney]

Totally - tenants pay bills too!

The average small-time landlord doesn't have the capacity to retrofit a rental property and they payback time is very long especially given BTL rates. Rental stock will just decay slowly. If there is a minimum BER for new rentals it will just accelerate the flight of landlords even more.

This is, ironically, where funds will be much better landlords. They will maintain and upgrade quality in their units much more systematically.

The last point is highly debatable as long as payback on retrofitting investment continues to stretch into decades.

 

[NoRegretsCoyote]

@T McGibney

True, but institutions have longer horizons and lower funding costs than punters.

 

[PebbleBeach2020]

This is, ironically, where funds will be much better landlords. They will maintain and upgrade quality in their units much more systematically.

Of course they do, they pay minimal tax whereas individual landlords pay 51% tax.

 

[galway_blow_in]

the government will just bring in legislation to ensure even landlords do a retrofit , that they will be obliged to re let the property to the previous tenants

 

[galway_blow_in]

As I predicted

Renters to be offered back homes after retrofit is complete

Renters to be offered back homes after retrofit is complete

Landlords who evict tenants so they can retrofit their homes will have to “offer” the property back, according to a housing minister.

www.independent.ie

No better man than Dara o Brien to bow to pressure, he did it last year when he flip flopped on the initial inflation rate rent increases allowed

 

[Leo]

As I predicted

Renters to be offered back homes after retrofit is complete

You predicted? That's been law since 2019!

 

[galway_blow_in]

You predicted? That's been law since 2019!

Why are you directing that to me ?

I didn't open the thread

 

[Leo]

Why are you directing that to me ?

I didn't open the thread

Yeah, you said the 'as I predicted' line, and 'the government will just bring in legislation to ensure even landlords do a retrofit , that they will be obliged to re let the property to the previous tenants'.

Your prediction was for legislation that was passed in 2019.

 

[galway_blow_in]

Yeah, you said the 'as I predicted' line, and 'the government will just bring in legislation to ensure even landlords do a retrofit , that they will be obliged to re let the property to the previous tenants'.

Your prediction was for legislation that was passed in 2019.

I didn't open the thread ,I replied to their thesis

Brendans attached link to Irish times piece February 24th quotes no less than the RTB where the possibility of using retrofitting scheme might allow termination of tenancy is raised

Don't know what you're problem is ?

Even the RTB ,s concerns raised were baseless due to the 2019 change in legislation?, my prediction of the minister riding in with assurances still bore out

 

[Leo]

I didn't open the thread ,I replied to their thesis

Where did I say you did?

You said:

the government will just bring in legislation to ensure even landlords do a retrofit , that they will be obliged to re let the property to the previous tenants

and then...

As I predicted

I just pointed out that you were predicting the government would bring in legislation that was introduced years ago.

my prediction of the minister riding in with assurances still bore out

No, you didn't say assurances, as above you said they would bring in legislation. I assume you were unaware of this legislation and don't like that being highlighted.

 

[galway_blow_in]

Where did I say you did?

You said:

and then...

I just pointed out that you were predicting the government would bring in legislation that was introduced years ago.


No, you didn't say assurances, as above you said they would bring in legislation. I assume you were unaware of this legislation and don't like that being highlighted.

Don't be such a pedantic Pete ,it's tedious ,the Irish times link has an RTB raised concern, take it up with them if they are ignorant of 2019 legislation, you obviously know better than they do