Threatening Letter, and Landlord asking for rent in cash has me worried

LordSirTurnip

So before moving in to the current accommodation the landlord made it clear he wanted rent in cash, and was vehemently against any kind of standing order or bank transfer. Seeing as he worked for a letting agency (inferring some kind of reputability) and we were a bit stuck for a place to live, we just accepted it and went on with living.

A few weeks ago after a struggle to get the post box open, see (https://www.boards.ie/discussion/2058221969/landlord-ignoring-requests-to-unlock-post-box-or-to-give-us-a-key/p1) for context, I found a letter, addressed to the "occupants of the dwelling", which I opened.

The letter was from a large multi-national financial firm and in part, said this company was now in receivership of the dwellings mortgage, and that any occupants of the dwelling should stop paying any rent to the former owner, and now start paying them instead. I brought this to the attention of the letting agent and he essentially said not to worry, if anyone called or appeared at the door to ignore them and to not give any details of my own, or of his. The wording of the letter made it sound as if we didn't give them our details, and start paying rent to them instead that we would get into arrears for living in "their" property.

Originally I assumed this rent in cash business was for tax dodging purposes, but this letter, as well as a previous, similar one that was dated back in the summer, have set my alarm bells ringing and I'm wondering what the situation is, or might escalate to. I'd love to hear another opinion on the matter, and if anyone has experience with the matter. I have signed a year long lease and this has made me thoroughly wish I hadn't, could there be any repercussions for me? Is this a grounds for voiding the lease if needs be?

lollsangel

When you say you are paying in cash, are you getting a receipt or having a rent book filled in?

silver2020

The property is in receivership. The landlord no longer has control.

I'd be contacting the receiver for details of where to make the payments as this will protect your rights.

The receiver will have a property management company take over and at some point it will be sold as a house with tenants if you are still renting.

If you want to leave, the receiver will have no issues with that. Likewise if you want to stay, they will adhere fully with the legal requirements.

Supercell

OP the only way to know who really owns this is to get a copy of the property folio, its publicly available for €5 on https://www.landdirect.ie/

If it lists the multi national as the current owner, or indeed that the ownership has changed recently (its a list of historical owners) then you'll know where you stand.

The whole cash in hand business is dodgy as hell as you already know.

silver2020

https://www.boards.ie/discussion/comment/118399158#Comment_118399158

Receivership does not give ownership to a financial institution.

They are a receiver to the assets of the person/company that is in receivership.

If they don't get rent, they can effectively say that rent is not paid and can start eviction.

Pay the receiver rent and you will be dealing with a professional management company who will comply with all legislation.

pleh

I wouldnt delay moving out if i were you, who needs the hassle

Mrs OBumble

If you can find somewhere to move to, then don't be worried about breaking the lease: dodgy ex owner isn't going to be taking you to court, and the multinational won't know about it.

Your biggest challenge will be getting your deposit back.

generic_throwaway

I'm guessing this tenancy isn't registered with the RTB?

LordSirTurnip

https://www.boards.ie/discussion/comment/118399152#Comment_118399152

It has been in cash, but no receipt despite the fact he did say he'd provide one, but I have the lease that says I have to pay the rent every month. I also have housemates in the same boat.

https://www.boards.ie/discussion/comment/118399158#Comment_118399158

Sorry, to Clarify, the letter stated a pair of guys as the new receivers, and that this company is now managing this situation for them.

LordSirTurnip

https://www.boards.ie/discussion/comment/118399189#Comment_118399189

So what you're saying is to stop paying rent to the current "LL" and get in touch with and start paying the new company instead? Legally speaking, with a signed lease and everything, couldn't the current LL kick up a stink over that?

LordSirTurnip

https://www.boards.ie/discussion/comment/118399453#Comment_118399453

Were it so easy.... Let's just say I live in an RPZ, Uni city, with a severe lack of affordable housing. This is my last year studying and rent has never been so high, with so few options. I'm starting to look around but with school starting again in a few weeks its a royal pain in the hole, especially considering I just moved in the Autumn.

https://www.boards.ie/discussion/comment/118399599#Comment_118399599

Never got an RTB Letter like I have in my last few houses, So I suppose it's safe to say nothing going on here is above board.

LordSirTurnip

https://www.boards.ie/discussion/comment/118399596#Comment_118399596

Which is a lot of money, knowing what i know now the deposit was probably so much because of this very situation.

Bass Reeves

Whoever you pay from now on pay it into a bank account. If the present LL is in receivership he is playing a stupid game.you have received legal correspondence I contact them and get them to give you gairantees as to there legal control of the property. I even go so far as to hire a solicitor to write to both parties and get him to clarify the ownership. Deduct costs from you rent in the case of the reviewer. If present LL is legally entitled to collect the rent you will LL have to stand the cost of the solicitor yourself.

recode the site

The old landlord is in absolutely no position to take you to court, forget that one.

HeidiHeidi

Have you contacted the receiver to get their side of the story?

You'll likely get a more correct version of what's actually going on from them, by the sounds of it.

Landlord telling you to keep schtum, on top of the cash rent, sounds highly dodgy.

endofrainbow

First step would be to contact the Receiver for clarification.

To be on the safe side I would google the company that’s on the letterhead and ring the number shown on their website rather than on the letter.

If receiver is legit, you’re in a better position paying them than the current cash setup to dodgy landlord/letting agent.

houseyhouse

Did the receiver show you a ‘deed of appointment’? According to Threshold they have to show that to prove they’re legitimate (https://www.threshold.ie/advice/dealing-with-problems-during-your-tenancy/has-a-receiver-taken-over-the-property-you-rent/) . I suppose otherwise anybody could contact tenants and ask them to start paying into a different account. Threshold also suggest putting rent by in a separate account if you’re not sure who to pay it to. That would also allow you to return your own deposit to yourself if things really go south. I think contacting Threshold or RTB would be my first step in your situation to get clear guidance on what you should do and how your rights are impacted.

LordSirTurnip

https://www.boards.ie/discussion/comment/118400821#Comment_118400821

The company is Deloitte, I'd heard of them before and they have an office in the city. As I said above the wording in the letter infers they are working on behalf of two individuals who seem to be the receivers. Its a house share so I'm not sure how me paying them instead would really work considering I'm only paying for a "room" in the house.

Mrs OBumble

You and your housemates need to work together.

Google Deloitte, call their main phone number and ask to be put through to whoever is named on the letter.

paul71

Deloitte are one of the largest Accountancy and Audit firms in the world. They are highly reputable. If they are indeed the receiver write to them by registered post and seek written clarification from them of the receivership and ask for instructions in writing and a bank account into which you should pay your future rent. Also ask them to confirm that they acknowledge your security deposit and that they will undertake to register themselves as the landlords with the rtb. Once done you can tell your current landlord you are paying the receiver.

Emma2019

This happened a friend of mine. Property went into receivership and landlord tried to get them to keep paying him.

If the receivership is valid then the receiver should be getting the rent.

Call deloitte and confirm they have been appointed receiver and pay the rent to them via bank transfer going forward.

Eventually in my friends case the property came out of receivership and the landlord was entitled to the rent again.

redarmyblues

Stop paying rent anyway until it can be discovered who the rightful beneficiary is.

Deloitte are a global company.

https://www.boards.ie/discussion/comment/118400977#Comment_118400977

Are you sure the letter didn’t say that that the 2 individuals are representatives of Deloitte and are handling the receivership of <insert company here>?

That’s why I said to double check that the letter is legit. Also, Deloitte are a global company with global sized fees. Seeing as this is a receivership (if legit), your landlord must have a pretty decent portfolio of properties and assets/liabilities for them to be involved. If that’s the case, time is on your side with regards to residing in the property as winding up a company isn’t usually a quick process.

Google the names of the two individuals Deloitte mentioned and clarify everything via a phone call to Deloitte on Tuesday.

LordSirTurnip

https://www.boards.ie/discussion/comment/118404376#Comment_118404376

I snapped photo of the letter before i showed it to my LL, who promptly snatched it up and said "Don't worry about it, it's just a Vulture Fund". The wording is that these two people, A and B, are now in receivership of the Assets of some fella (I assume the House included), and that Deloitte is acting as a representative of this pair. Any rent we are currently paying needs to now start going to them, and any rent we pay to the current LL wont be legally acknowledged as giving us a right to live there by the legal owner/s of the dwelling.

To be completely honest, I'm 4 months from graduating with an Honours degree in IT, and I'm about set to pack my bags and gtfo of Ireland. Living and renting for the past 4 years has been nothing but a disgrace and made me realise the greedy few have ruined this country. I could be paying half of what I am now, for full apartment in my partners Home city elsewhere in the EU, so dealing with this **** just no longer makes sense. I'll probably just end up telling them I know what **** they're playing at, and leave asap.

Taylor365

https://www.boards.ie/discussion/comment/118406918#Comment_118406918

Its the politicians ye should be after father!

They invented ga....oh wait, this isn't AH. 🤐

sk8board

It’s pretty simple - call the receiver.

ive a current tenant who I know quite well, and was in a similar situation previously. the delinquent LL was a carbon copy of your guy, banging on the door looking for cash rent, when they were already paying the receiver.

in the end the receiver came and changed the locks and told them to call the gardai every time he appeared. That stopped the messing v quickly, as he technically had no rights to be there anymore.

LordSirTurnip

Update.

Spoke with he other tenants and we've all agreed to go forward with questioning the LL, and contacting Deloitte. The main question i have at this point is...

When we refuse to pay the LL for rent and tell him that we are contacting Deloitte. What's stopping him from promptly trying to evict us, does he, despite not being in legal receivership of the dwelling, have the ability to kick us out?

houseyhouse

Even if he had full control of the property and you stopped paying rent it could take him years to legally evict you.

Mrs OBumble

https://www.boards.ie/discussion/comment/118414177#Comment_118414177

Yeah, but practically, he has a key and likely doesn't feel constrained by tenancy laws. At very least the new LL needs to change the locks.

Emma2019

https://www.boards.ie/discussion/comment/118414134#Comment_118414134

He doesn't have the right to kick you out. If he causes hassle at your door, call the guards.