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Threshold said it regards the demands for agency fees as excessive' Alamy Stock Photo

Rental regulator set to issue ruling over €200 fee for leaving tenancy mid-lease

The agent sought to add the “administrative fee” for a tenant in Dublin 8 who was seeking to leave their apartment but had been tasked with finding a new tenant and sourcing references.

ATTEMPTS BY a south Dublin letting agent to introduce fees of more than €200 for anyone leaving their tenancy mid-lease have been sent forward to the regulator for the private rental sector, following pushback by one tenant and a leading renters’ body.

It comes after the agent sought to add the “administrative fee” for a tenant in Dublin 8 who was seeking to leave their apartment but had been tasked with finding a new tenant and sourcing references.

The couple in the case had sought to exit their €1,900-per-month tenancy mid-lease after three years, providing 56 days notice as per legislation.

They had agreed to find a replacement tenant but problems soon arose between the parties. The dispute centres around the €200 fee and the letting agent also seeking supporting documentation, such as references, from the outgoing renter for the replacement tenant.

When VAT is included, the letting agent’s fee amounts to €246.

The attempts to introduce the fee have sparked concern among advocates in the private rental sector, amid fears they will add to the overall expense of renting.

There have been similar attempts to introduce fees for renters, such as the now-dropped charges that Ires Reit tried to introduce for the use of common areas in its buildings in recent months. These were scrapped following legal advice received by the company.

A complaint has been lodged by the tenants this month on the Islandbridge apartment with the Residential Tenancies Board (RTB).

The tenant in the case disputes that the fees were ever included in his lease.

Housing charity Threshold believes the requests for fees and paperwork are “excessive” and further questioned if a “basis for such demands exists under Irish law”. But it also noted that when a tenancy is to be reassigned, the Residential Tenancies Act is “silent on how this is done”.

Other groups, including a renters’ union and Sinn Féin’s housing spokesperson Eoin Ó Broin, expressed concern that renters may be charged hundreds of euro for leaving mid-lease.

A spokesperson for Threshold said that under current legislation, replacing a tenant mid-lease should be “straightforward” and “no additional conditions” are stipulated beyond consent from the landlord for the outgoing renter.

Ó Broin urged tenants to lodge such cases with the RTB, arguing that often there are fewer obligations than parties may realise when it comes to ending a lease.

Renters’ group the Community Action Tenants Union (Catu) said it was concerned that the practice was an “example of tenants being squeezed” by landlords.

Dispute between tenants and letting agent

Speaking on condition of anonymity, the tenants said they had been renting for almost 20 years and expressed frustration at the requests for €246.

“We have done all the leg work for assignment of the lease. We published advertisements for viewings. We facilitate several viewings, we gathered information from prospective tenants, and answered all of their questions about the property and apartment,” they told The Journal, while asking to remain anonymous.

The owner of the letting agent told The Journal that they had taken steps to ensure they were acting within the law. By charging the fee, the agency owner said it helps to “ensure the smooth transition from one tenancy to another”.

They further claimed that that transferring tenancies is a “labour intensive process” and that the agency had begun charging such fees this year.

It had also been “very difficult to find a concrete answer” from the RTB on the legality of the charge, the agency owner said.

When contacted for comment, a spokesperson for the RTB said it often does not provide positions without the full details of the lease agreement, instead ruling on the issue during an official dispute process.

It added that a tenant is only obliged to pay a charge where it’s provided for in the contract.

According to Threshold, there are often misunderstandings on the obligations for tenants when ending a lease. The organisation said there is no requirement for a tenant to find a replacement.

While it “usually” falls on the departing tenant to find a replacement, Threshold said it can “vary case to case” and should be discussed between parties beforehand.

The RTB is expected to rule over the coming months.

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