Has a receiver taken over the property you rent?

Many private rented properties are purchased by their owners using a buy-to-let mortgage. 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 letter may not be directly addressed to the tenant but to a generic title such as the occupier/tenant. Where a receiver has been appointed, they must produce a deed of appointment to show that they have control over the property you are renting.

Once you have been provided with a copy of the deed of appointment you should comply with any requests to pay the rent directly to the receiver or their appointed agent. Should any dispute arise in relation to whom the rent should be paid it is important that you retain the rent if necessary in a separate account. You can contact Threshold who can assist with clarifying this issue.

You should seek clarity on your deposit and rent arrangements and also identify 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 into the shoes of a landlord and the rights and obligations that apply under the Act are adhered to. Until that legislation is introduced, all parties must work within the current laws.