Has a receiver taken over the property you rent?
Many private rented properties are purchased by their owners using a buy-to-let mortgage. The Central Bank estimates that there are just over 120,000 Buy-To-Let mortgages with over 18,000 in arrears of 90 days or more in the first quater 2018. For more on this click here
Where the owner defaults in the repayments of the mortgage, the lending institution may appoint a receiver. A receiver is someone appointed by a bank to collect income (such as rent) from a property to ensure a loan or mortgage is repaid.
Often the first a tenant finds out about the appointment of a receiver is when there is a knock at the door or they receive a letter through the post. This can be a worrying time as, at present, there is a lack of clarity around how the appointment of a receiver impacts upon the rights of a tenant. There may be confusion as to who the rent should be paid to or who is responsible for carrying out repairs, returning the deposit etc.
Where a receiver has been appointment they must produce a deed of appointment to show that they have control over the property you are renting.
You should seek clarity on your deposit and rent arrangments and also who you report day to day tenancies issues.
Threshold has called for a legislative amendment to the Residential Tenancies Act so that it clearly states that where appointed, a receiver steps in to the shoes of a landlord and the rights and obligations that apply under Act are adhered to. Until that legislation is introduced, all parties have to work within the current laws.
You can download further information and tips to help you if a receiver is appointed to the property you are renting.