Move by Irish Residential Properties Reit sets unwelcome trend in charging high deposits

Fianna Fáil Dublin Spokesperson for Dublin, John Lahart TD has said that a move made by one of Ireland’s largest private landlords, Irish Residential Properties Reit (Ires Reit) which owns 2,400 apartments in the greater Dublin area is excluding thousands of low or middle income earners.

Deputy Lahart commented, “While rents in the Capital continue to escalate, rising cost of private sector rents will see tenants having to find very substantial deposits to secure accommodation from the landlord.

“It has long been the practice of landlords, traditional and institutional, to request a security deposit to move into a premises however, the norm has always been one months rent. Potential renters accept that a reasonable deposit is required.

“Firms such as Ires Reit are now throwing many prospective tenants a curve ball by requesting two-months’ rent as a deposit to secure a premises in their portfolio.

“An average month rent in a property owned by Ires Reit is approximately €1,500 which means that an upfront deposit would be in the region of €3,000 on top of a subsequent €1,500 for the first month’s rent. This is a huge amount of money, an amount that most single tenants or those seeking private accommodation would never be fortunate to have.

“There are countless people that will not be in the position to part with such a significant sum to secure a deposit and are therefore excluded from renting a property owned by the Ires Reit.

“At a time when Dublin rents are already reaching new heights in expense, this move sets a trend and adds even further to their growing financial pressure.

“Justification for the move to double deposits has been allegedly based on the grounds that it is the European Norm, which is highly questionable – and even if it were the ‘norm’, the Dublin rental market is far from normal.

“This approach ensures that only those with substantial incomes can avail of renting these properties – it is, in my view, highly discriminatory.

He concluded, “This trend should not be allowed.”