My (landlord) experience of the RAS scheme

Jessica park

I have finally been able to get out of a four lease with Dublin City Council. It has been an absolute nightmare.

The rent increase over the four years has only been 50 euro which means I have been left 500 euro below what I have to pay for my mortgage repayments.

I joined the scheme in 2012 when there was a slump in the rental market and once you are in it is impossible to get out. Anybody thinking of joining the scheme should think twice about it.

The four year lease was up this year and I gave the tenant 112 days noticed as required. When it came to moving out Dublin City Council advised her not to so I had to take a case against him to the PRTB.

After 500 euro in legal fees and three months of over holding the property I found out today that Dublin City Council will return my keys to me next week. They gave me no notice to say that the tenant had moved out.

Because Dublin City council would not increase the rent over the four years I have also been affected now by new legislation since December 2016 which says that landlords can only increase their rent by 4% pa. This 4% I am told will be based on the below the market rate at which I have been renting with Dublin City Council for the past four years.

Dr_Kolossus

I feel really sorry for you, we almost let our place out to DCC but luckily pulled out at last minute. Long shot here, and I don, really know the legislation.

Did the tenant pay u rent while they were over holding? If not can you say that the house wasnt rented, so you can start off with a clean slate and charge whatever u want?

colm_mcm

When you say you're down €500 vs mortgage payments. Is this spread over 4 years?

Baby01032012

colm_mcm wrote: »

When you say you're down €500 vs mortgage payments. Is this spread over 4 years?

I'd imagine €500 a month as that would be average monthly increase in 4 years.

Councils are worse than bad tenants. Had RAS once. They don't care who they put in. Tenants destroyed the place and then left. Once council found out tenant was gone they stopped the payments and walked away.

Mitzy

I fully agree with you. My contract with RAS is up soon after 8 years. Notice etc has been sent to the tenant giving well in excess of the required notice period but the tenant has told me that they will not go anywhere until RAS rehouse them.

RAS are washing their hands of the situation and told me that if the tenant does not leave it's up to me to deal with PRTB. I had no choice over which tenant was put in (as I would never have let this tenant in the door if it was a private letting) but now I am left with a potential rent defaulter.

I would tell any landlord to run a mile from this scheme. There is nothing that would encourage me to renew the deal with them.

colm_mcm

Baby01032012 wrote: »

I'd imagine €500 a month as that would be average monthly increase in 4 years.

Councils are worse than bad tenants. Had RAS once. They don't care who they put in. Tenants destroyed the place and then left. Once council found out tenant was gone they stopped the payments and walked away.

But the mortgage hardly went up?
So it's a loss of €500 per month vs what could potentially have been got at current market prices?

I thought there was some comeback ref damage if you're dealing with the council?

Jessica park

I went to pick up the keys today and discovered that tenant is still in the property and said she won't leave until the Council finds him a place. The tenant has officially until the end of the month to leave as set out by PRTB notice. Dublin City Council have offered her one or two other places but the tenant said he didn't like them. A total nightmare!

Jessica park

I had a look at rental prices today and based on those figures, Dublin City Council are paying 600 euro below the market price.

Eric Cartman

Jessica park wrote: »

I went to pick up the keys today and discovered that tenant is still in the property and said she won't leave until the Council finds him a place. The tenant has officially until the end of the month to leave as set out by PRTB notice. Dublin City Council have offered her one or two other places but the tenant said he didn't like them. A total nightmare!

What an absolute scumbag. Some people wonder why RAS tenants aren't accepted in most properties. Hopefully you can get that infestation out soon.

murphaph

I'm also terminating my only RAS property contract. I'm lucky that the tenant is decent and is actually actively house hunting with a sizable deposit following an inheritance. I'll be sorry to lose the tenants but not sorry at all to get away from RAS and the council's attitude.

The funny thing is the council in their efforts to swindle me have provided me with a valid reason (documented) to go straight to market rate and not be limited by the 4% rule.

It's a shambles of a scheme like all of them. They want landlords either to take all the risk or offer 20% below market rate.

Jessica park

Yes, I agree. I have been struggling for the past four years to make ends meet to pay the 600 euro a month shortfall I have had to pay on the apartment - 28,000 euro over four years.

Spanish Eyes

From listening to a friend letting on RAS, the payment of rent on the button by the Council is fantastic. They asked for and were given a hike in rent too. (before current rules). Tenants vetted too.

Having said that, I reckon the only way to get out of this contract sub 4 years is to croak.

Friend says it is better to have the rent guaranteed in yer bank than peppering it won't be under a private let.

Each to their own.

TheAnalyst_

Ouch, its rare I have much sympathy for a landlord but thats not fair. You took a gamble on a stable rent, fair enough but you've done your four years.

kyleman

You're lucky to be out of it. I let my house on long-term rental (10 to 20 yrs ) with rent reviews after first 2 years and then every 3 years. We were guaranteed 80% of the market rate but on review got 10% on each review date. So 5 years in getting 500 per month for a property worth 1000 on the open market. Made hundreds of phone calls to council and housing association, but no progress yet.

Jessica park

I asked for increase in rent but unlike your friend was not given. It is one thing having rent guarantee but it doesn't cover half your mortgage then not much good.

the_syco

Mitzy wrote: »

RAS are washing their hands of the situation and told me that if the tenant does not leave it's up to me to deal with PRTB. I had no choice over which tenant was put in (as I would never have let this tenant in the door if it was a private letting) but now I am left with a potential rent defaulter.

Could you sue the RAS for damages/unpaid rent if they leave the tenant there?

Jessica park wrote: »

I went to pick up the keys today and discovered that tenant is still in the property and said she won't leave until the Council finds him a place. The tenant has officially until the end of the month to leave as set out by PRTB notice. Dublin City Council have offered her one or two other places but the tenant said he didn't like them. A total nightmare!

<snip> Start eviction proceedings, and ensure it's all above board. Hopefully you'll get them out. Consider offering them a bribe on the day after they move out, as in the long run getting them out, the quicker you get the place sorted, and relet; the better.

kyleman

I know any solicitor could advise you but does could anyone recommend one that specialises in property rental laws?

athtrasna

kyleman wrote: »

I know any solicitor could advise you but does could anyone recommend one that specialises in property rental laws?

By pm only as per forum charter

Mod

4ensic15

kyleman wrote: »

I know any solicitor could advise you but does could anyone recommend one that specialises in property rental laws?

There are a few barristers who deal with residential lettings. There are almost no solicitors doing so. To get anything done you have to get a barrister instructed. A friend on mine got rid of an overholding RAS tenant a few years ago. He got a barrister who was recommended by another barrister. He had her out a few weeks after the determination order period was up.

sweetie

Jessica park wrote:

Because Dublin City council would not increase the rent over the four years I have also been affected now by new legislation since December 2016 which says that landlords can only increase their rent by 4% pa. This 4% I am told will be based on the below the market rate at which I have been renting with Dublin City Council for the past four years.

Are you sure about this part?

Michael Kavanagh

the_syco wrote: »

Could you sue the RAS for damages/unpaid rent if they leave the tenant there?


<snip> Start eviction proceedings, and ensure it's all above board. Hopefully you'll get them out. Consider offering them a bribe on the day after they move out, as in the long run getting them out, the quicker you get the place sorted, and relet; the better.

Yes I had a family on the Ras scheme they were in the house two years he was a disaster she was afraid of him anyway he died tragically but the local council had to foot the bill for new kitchen, paint the house inside, replace doors. Never again will I have somebody like that in the house.

GGTrek

4ensic15 wrote: »

kyleman wrote: »

I know any solicitor could advise you but does could anyone recommend one that specialises in property rental laws?

There are a few barristers who deal with residential lettings. There are almost no solicitors doing so. To get anything done you have to get a barrister instructed. A friend on mine got rid of an overholding RAS tenant a few years ago. He got a barrister who was recommended by another barrister. He had her out a few weeks after the determination order period was up.

From the Dublin City Council:
We will nominate a RAS tenant for you
This tenant will sign a residential tenancy agreement with you. The nominee could be an existing tenant who currently receives rent supplement and is eligible for the RAS.  Your accommodation may be an existing property or new build.
The local authority will be party to this agreement as guarantor of the rent.

My understanding is that these RAS contracts are still subject to RTA 2004 to 2016 and the Council is simply acting as a guarantor of the rent (nothing more). So the poster will first have to take the matter of breach of tenancy agreement terms (for example rent reviews detailed in the tenancy agreement if they were more favourable than market rent rules established by statute) to RTB and then enforce them through Circuit Court against the guarantor (the Council). But I am not sure about it, given the fact that a public body is involved.