LANDLORD IRES REIT agreed during mediation with the rental sector regulator to stop trying to charge a tenant €150 monthly for the ‘common area’ of a Drumcondra apartment block – but two months later began pursuing other tenants for the fee at the same building.

In correspondence issued last December, the Residential Tenancies Board (RTB) said the common area charge would not apply to a tenant at The School Yard apartments who was facing the extra costs after changing their lease.

After being issued by the landlord, it was appealed by the tenant who argued that it was an attempt at increasing their rent outside of Rental Pressure Zone (RPZ) rules. RPZ regulations prohibit an increase of rent by more than 2% annually.

The charge was set aside during mediation at the RTB, with the watchdog issuing a decision noting that Ires Reit and the tenant had come to an agreement that the fee would not go ahead.

Following this, Ires Reit sought to charge new tenants of The School Yard. The practice has seen it receive criticism from renters and politicians from Sinn Féin, Labour and the Green Party.

The private sector landlord – Ireland’s biggest with up to 3,700 apartments in Dublin alone – has now sought to attach the more costly €200 fee to the bills of people looking to live in the 61-flat property.

A PR company acting for Ires Reit did not comment when contacted about the RTB decision. When initially contacted last week about criticism of the charge, the landlord had also refused to say whether it was intending to apply the charge to its other properties.

If successful then Ires Reit – which reported revenue of €85 million for last year – would receive an extra €2,400 extra across the year per tenant.

However, as the RTB has not issued a final ruling on the proposed charges, it is unclear whether a precedent has been set allowing landlords to add such fees to bills. If mediation had failed then the issue would have had to be resolved by a tribunal of the RTB.

Sinn Féin housing spokesperson Eoin Ó Broin criticised the “shoddy practice” and said he would be contacting the chief executive of the RTB to commence an investigation.

“Ires Reit pride themselves on being a very professional, well run and legally compliant company, and if they’re engaged in that type of practice, then it’s a pretty shoddy practice indeed,” the Dublin Midwest TD said.

“I would strongly encourage any tenants who think these charges are breaches of the RPZ 2% limit to lodge a dispute with the RTB and allow them to make a determination.”

€2,400 extra each year

Over recent weeks, Ires Reit has told tenants it is seeking to introduce the €200 monthly charge on all new leases for The School Yard.

The charge will apply “automatically on all new leases” and will be “per month in addition to rent”, according to correspondence from Ires Reit seen by The Journal.

Ires Reit makes no reference to so-called common area charges in online advertisements for its apartments in The School Yard and declined to comment when contacted.

The proposed charge would cover the cost of common areas, but current tenants at The School Yard questioned the logic of the charge.

They noted that there is a playground and a mailroom. There is also a carpark, which tenants already pay €80 a month to use.

Regulator comment

The RTB, which said it would not comment on individual cases when asked about common area fees, said that the Residential Tenancies Act 2004 “does not specifically refer to charges” for common areas of rental properties.

Instead, Section 16 of the Act provides that various charges may have to be paid by the tenant but it also leaves them open to resistance if the landlord’s extra fees are included in provisions that “are unlawful or contravene any other enactment”.

An RTB spokesperson told The Journal that a lease agreement “should clearly set out any additional charges” to be paid by the tenant.

“Additional charges cannot be used to circumvent provisions under the Residential Tenancies Act that prevent rent from being increased above permitted limits in Rent Pressure Zone areas,” the RTB spokesperson said, adding that tenants should contact the RTB if they have concerns about such charges.

Political reaction

Local Labour TD Marie Sherlock called the attempts to impose the common area charge “pure greed” on the part of Ires Reit.

Sherlock said that trying to proceed with the charge on other tenants “dubious” given that Ireis Reit had “backed away from it after they were challenged” by a tenant.

The Dublin Central TD urged the RTB to publicise when landlords are attempting to add additional fees.

“You don’t need to name the landlord but such practices should be flagged to the public when they feature in the rental market,” Sherlock said.

Green Party councillor Janet Horner said the charges were “incredibly cynical” and accused the company of trying to “take advantage of people who may neither know their rights or aren’t in a position to exercise them”.

She urged the RTB to take action.

“It shouldn’t have to be an individual to take this. The reality is most tenants are not in a position to negotiate this,” Horner said.