Threshold warns landlords not to pass on household charge to tenants

Threshold warns landlords not to pass on household charge to tenants

Senator Aideen Hayden of Threshold

National housing charity Threshold is warning landlords they cannot pass on the €100 household charge on to tenants.

The Irish Property Owners’ Association announced today not only will it be passing on the tax to tenants, it’s also planning to charge an additional €200 to cover the NPPR ‘second home’ charge.

The IPOA is advising landlords to bill tenants €300 a year upfront, or in €25 installments.

However, Senator Aideen Hayden from Threshold has described the call as “opportunistic and unfair”, telling tenants not to pay the charge under any circumstance.

It followed comments from IOPA chair Stephen Faughnan who said its members would be forced to pass on the extra cost due to the “huge burden of levies, taxation [and] compliance foisted on landlords in recent times”.

Threshold chair Senator Aideen Hayden replied: “I’m horrified that a national representative body would make such a misleading and irresponsible call.

“When the Department of the Environment introduced this charge in the recent Budget, it stated very clearly that owners – not occupiers – would be liable.”

There are 4 comments for this article
  1. J. O’Brien at 3:12 pm

    The lease has a fixed price. You are opening an ugly can of worms and you are hurting the owners more than the tenants!

    Furthermore, no tenant will renew the lease of any landlord which asks them to pay their tax. Would you go bak to a restaurant if at the end of your bill they produced a clause which asks you to pay a charge for their property tax? No, it is included in the price and landlords are in no position to get stupid with the few remaining tenants!

    You are wrong about this – your fight is with the government, not the only friend a landlord has – his tenant.

  2. Karl Deeter at 2:55 pm

    This is inaccuracy on both sides of the debate, on one hand you have Threshold claiming ‘moral outrage’ (without foundation for their claim that a landlord can’t do this) and on the other you have IPOA saying ‘pass on the charge’ again, without justification as to whether this is possible or not.

    For the last two years we have had the following clause in every tenancy agreement that went out on our advice:

    3.4 To pay promptly to the authorities or to whomever they are due, local authority, refuse charges and outgoings (including gas, water, electricity, cable television and telephone if any, relating to the property) including any which are imposed after the date of this Agreement (even if of a novel nature) and to pay the total cost of any re-connection fee relating to the supply of gas, water, electricity, cable television and
    telephone if the same is disconnected or the operating company changed.

    That is the foundation we’ll be using for passing this charge on, and it is in the contract which means there is already agreement on both sides.

    So the better solution is to design good leases rather than come out as threshold and IPOA have with ‘reasons’ for going one way or another, just make sure it’s in the contract.

  3. J. O’Brien at 2:44 pm

    With regards to. Are they serious?!?!?

    It is so irresponsible for IPOA to advise passing on the charge to tenants – in fact I wonder if I could sue IPOA for lost income when my tenant moves after I issue such an unjust charge.

    It’s my property and tax is my responsibility. What kind of regressive logic would have me asking tenants to pay my tax?

    It is greedy landlords and property owners, which ruined this country by continually increasing prices far higher than their real value and driving away all the foreign investment because firms could not pay the employees enough to manage their bubble rents and mortgages. It wasn’t Dell’s fault for providing thousands of jobs, it was the people who sold and rented to the workers, which drove those jobs away. We seem to like to conveniently forget what really happened.

    However, another shoot-your-own-foot result of this regressive idea is that the result will drive rents down, not up. Every time a tenant moves they choose a cheaper accommodation and if my tenant moves I will have to advertise at about €100 less then I get now. (THANK YOU IPOA!).
    Sending letters to tenants wishing to change (read break) the terms of their leases will only result in many court cases and broken leases. I would not be surprised if a landlord blacklist website emerges out of this.

    Typical of Irish property mentality – short-term gain for long term pain.

    J. O’Brien

  4. Denise Clarke at 6:14 pm

    I live and rent a house in a rural area of high unemployment. Due to the increasing barriers to tenants getting housing benefit landlords have to drop rents. In Sligo the council refuses to allow people register on the Housing list if they do not come from Sligo, if a person can not get proof of rent payed previously they can not register. Loads of landlords did not declare their rental income and now are denying proof of rent paid to them by tenants so these tenants can not register. In my area there is no chance of getting a tenant with a job and local people are moving back with their families. So as a result of having to drop the rent and the increased flat taxes I can no longer afford to live in my own house. There is no chance of my getting a job so I wil, in the new year become a member of a new group of homeless home owners.

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