COVID-19 Guidance Document: Supports for Landlords and Tenants in Ireland, Lecture notes of Law

Download COVID-19 Guidance Document: Supports for Landlords and Tenants in Ireland and more Lecture notes Law in PDF only on Docsity! Guidance Document on COVID-19 Supports for Landlords and Tenants gov.ie PAGE 2 Guidance Document on COVID-19 | Supports for Landlords and Tenants 1 Emergency Measures in the Public Interest (COVID-19) Act 2020 1.1 Introduction With effect from Friday, 27 March 2020, new emergency measures were introduced into law to protect tenants during the COVID-19 emergency period. Tenants cannot be forced to leave their rental accommodation, other than in exceptional circumstances, during the COVID-19 emergency period. Initially, these emergency laws will last for a period of 3 months, but may be extended if the Government thinks it is necessary. A notice of termination cannot be served during the COVID-19 emergency period. All notices of termination which were served before the emergency period are paused and tenants, in general, cannot be obliged to leave their rented accommodation during this time. All notices of rent increase, which were served before the emergency period and were due to take effect during this period, are paused. While tenants are obliged to continue to pay rent during the COVID-19 emergency period, landlords are not permitted to increase the amount of rent payable during this period. COVID-19 presents significant challenges for both landlords and tenants over the coming months as a result of self-isolation, confirmed medical diagnosis and/or a reduction in working hours or loss of employment. The Minister for Housing, Planning and Local Government, Eoghan Murphy T.D., the Department of Housing, Planning and Local Government, the Residential Tenancies Board (RTB) and stakeholders have been working together to find solutions to address these ever-evolving challenges. This guidance document sets out the emergency measures introduced into law on 27 March 2020, along with the related income and other supports being provided to support tenants and landlords during the emergency period. In addition, support for buy-to-let mortgage holders with tenants affected by COVID-19 will be provided by the banking sector, including mortgage repayment breaks of up to 3 months. The following will apply during the emergency period: Tenants are obliged to continue to pay rent during the COVID-19 emergency period. Landlord obligations in relation to the property and the tenant also remain unchanged during the emergency period. Landlords are encouraged to engage proactively with their tenants during the emergency period. Tenants are encouraged to engage with their landlords and the Department of Employment and Social Protection at their earliest opportunity if they cannot afford to pay their rent. Income supports and Rent Supplement are available for those struggling with payments (further information on these supports is listed on page 5). PAGE 5 Guidance Document on COVID-19 | Supports for Landlords and Tenants 2 Income Supports The Department of Employment Affairs and Social Protection (DEASP) has introduced the COVID-19 pandemic unemployment payment and additional income support measures to help those who have seen their salaries reduced or terminated. 2.1 Illness Benefit The 6-day waiting period for Illness Benefit will not apply to anyone who has COVID-19 (Coronavirus) or is in medically- required self-isolation; The personal rate of Illness Benefit will increase from €203 per week to €350 per week for a maximum of 2 weeks of medically-required self-isolation or for the full duration of absence from work following a confirmed diagnosis of COVID-19; The normal social insurance requirements for Illness Benefit will be changed; Workers receiving enhanced Illness Benefit payment who still face financial distress can apply for additional emergency income support, in the form of Supplementary Welfare Allowance (based on a means test). The Government has urged all employers to continue, as a minimum, to pay employees who cannot attend work due to COVID-19 illness or self-isolation, the difference between the enhanced Illness Benefit rate and their normal wages. Employers are also being asked to consider a range of flexible working arrangements with their employees such as: Compassionate leave; Allowing the employee to work remotely; Allowing the staff member to ‘work-up’ any time taken at a future date; Allowing the employee to avail of annual leave entitlements; Rearranging parental leave. 2.2 Supplementary Welfare Allowance Employees who are laid off temporarily without pay due to a reduction in business activity, can apply for the COVID-19 pandemic unemployment payment. Employees who are put onto short-time working by their employer due to a reduction in business activity related to COVID-19 may apply for a Short-Term Work Support payment. Workers who are laid off temporarily or put on short-time working and who still face financial distress can apply for additional emergency income support, in the form of Supplementary Welfare Allowance (based on a means test). This can be accessed here. 2.3 Rent Supplement These approaches complement existing schemes such as Rent Supplement, which are also available to those affected. Rent Supplement is means-tested payment for certain people living in private rented accommodation who cannot provide for the cost of their accommodation from their own resources. It is available as a short-term income support to those in the private rented sector. In view of the difficulties created for many in the private rented sector who have lost significant employment income, the Department of Employment Affairs and Social Protection will use the full flexibility of the scheme to provide the necessary support. The Department of Employment Affairs and Social Protection is also adapting the application process for Rent Supplement to ensure that claims can be processed as efficiently as possible, including: Assigning additional resources, including those redeployed from elsewhere in the civil service, where necessary; PAGE 6 Guidance Document on COVID-19 | Supports for Landlords and Tenants Revising the form and working towards facilitating online applications; and Simplifying the process to ensure compliance with HSE guidelines and avoiding face-to-face contact. Details on how to apply are available on the Department of Employment Affairs and Social Protection page of the Government of Ireland website here. 2.4 Revenue Support Revenue will be operating a Temporary Wage Subsidy Scheme, which will enable employees, whose employers are affected by the pandemic, to receive significant supports directly from their employer. The scheme is expected to last 12 weeks from 26 March 2020. The operation of the Temporary Wage Subsidy Scheme will be available to employers who keep employees on the payroll throughout the COVID-19 pandemic, meaning employers can retain links with employees for when business picks up after the crisis. Additionally, the operation of the scheme will reduce the burden on the Department of Employment Affairs and Social Protection (DEASP) which is dealing with the other COVID-19 related payments. For more information please visit the Revenue website here. 2.5 Other Supports With Government funding, the national housing charity, Threshold, operates the Tenancy Protection Service (TPS). The TPS is a national service providing advice and support to households living in private rented accommodation who are experiencing tenancy problems, including where a tenancy is at risk of termination. The TPS seeks to protect existing tenancies and keep tenants in their homes. The TPS operates a free helpline - 1800 454 454 – available from Monday to Friday, 9am to 9pm. Further information is also available at  www.threshold.ie. Any landlord facing potential difficulties in making loan repayments because of COVID-19 is advised to contact their bank or credit servicer as early as possible. All of the existing protections for customers who face actual or potential financial difficulties continue to apply. Banks, retail credit and credit servicing firms will introduce 3-month payment breaks on mortgages, personal loans and business loans for some business and personal customers affected by COVID-19. PAGE 7 Guidance Document on COVID-19 | Supports for Landlords and Tenants 3 Existing Tenancy Protections It is important to note the tenancy protections that are already in place in law. These cover a number of areas including: 3.1 Security of tenure for tenants where longer termination notice periods are in place. Duration of a tenancy Landlord notice period Less than 6 months 28 days Not less than 6 months, but less than one year 90 days Not less than one year, but less than three years 120 days Not less than three years, but less than seven years 180 days Not less than seven years, but less than eight years 196 days Not less than eight years 224 days 3.2 Restrictions on how a tenancy can be ended. Tenancies can be ended under the following six grounds: The tenant has breached their responsibilities. The property is no longer suited to the tenant’s needs. Landlord or landlord’s family member wants to live in the property. Landlord wishes to sell the property. Landlord wants to substantially refurbish the property. The use of the property has changed. These grounds have effectively been suspended by the emergency legislation enacted on 27th March 2020, which prohibits landlords from serving a notice of termination on tenants during the emergency period, with a very limited number of exceptions requiring an RTB Determination Order. 3.3 Protections for students in Student Specific Accommodation. Student Specific Accommodation came under the RTB’s remit on 15 August 2019. This means that all landlords, licensors, tenants and licensees have rights and responsibilities under rental law. Rent Pressure Zone rules apply (see below) and registered landlords/ licensors and all students in Student Specific Accommodation have access to the RTB’s Dispute Resolution Services. 3.4 Rent Pressure Zones (RPZs) restrict the amount of a rent increase to 4% per annum. All RPZs can be found on the RTB website here. These restrictions will be applicable after the emergency period has ended. For the duration of the emergency period, no increase in rent is permitted. The RTB has enforcement powers in the event of a breach of the Rent Pressure Zone measures and tenancy termination rules. If you suspect a landlord has been or is in breach of RPZ rules or tenancy termination rules, please contact the RTB Investigations and Sanctions unit by emailing investigations@rtb.ie.