[Article] Cash-strapped landlords evicting tenants illegally to achieve higher rents

Victor

http://www.tribune.ie/property/article/2008/aug/24/cash-strapped-landlords-evicting-tenants-illegally/

Cash-strapped landlords evicting tenants illegally to try to achieve higher rents
June Edwards

Hard-pressed, cash-strapped landlords who are feeling the effects of the current credit crunch have begun evicting tenants, illegally, from rented accommodation. According to Threshold, the national housing organisation, some landlords are now trying to replace more vulnerable tenants with higher-paying ones in order to cover the cost of their mortgage.

"Some landlords who purchased properties during the boom, expecting them to rise in value, are finding themselves in financial difficulty, particularly if they are now in negative equity," says Bob Jordan, director of Threshold. The organisation deals with around 250 evictions in the private rented sector each year, but expects that number to increase significantly by the end of this year.

"What we're seeing now are tenants who may be in arrears by just one week or one month, being evicted illegally. They come home and find the locks have been changed and their stuff is out on the street. Or they get a threatening visit from an agent of the landlord, which can be very traumatic. In the past, landlords were more forgiving of tenants in short-term difficulties but now they want them out immediately," explains Jordan.

Even more alarming is the fact that tenants who are not in arrears are also being evicted illegally as landlords want to replace them with new tenants who are able to pay higher rents.

"Some landlords have unrealistic expectations for rental income, and we would always say to landlords not to expect rent to cover the entire mortgage. An investment property might have a mortgage cost of €1,800 a month, but rent will generally only bring in two-thirds of that or €1,200 a month, and you can't force your tenants to bridge that gap," says Jordan.

The dramatic increase in the number of house repossessions, which has more than doubled on previous years, is also affecting tenants in private rented accommodation. During the first half of this year, the High Court issued 126 possession orders, compared to 59 in the first half of 2007. Under the current law, repossession orders are only issued to the property owner, with no notification sent to tenants.

"Often, the first the tenant hears of the repossession is when the sheriff arrives at the door for the eviction. In New Zealand, tenants of properties due to be repossessed are legally informed of the situation. We would like to see that happening here," says Jordan.

Threshold, which is celebrating its 30th year in existence, is a non-for-profit organisation which helps secure a right to housing, particularly for households experiencing poverty and exclusion.

August 24, 2008

SimpleSam06

I'd be delighted to be illegally evicted, tbh. From what I hear of the PRTB, thats the one thing they seem to do well, award damages in the area of €10k to €15k for illegal evictions.