QI've been a landlord for many years now. My tenants have been in my rental property for more than a year and have just renewed their lease. They have just requested a HAP rental allowance. I don't want to be part of the HAP scheme but these tenants are very nice and have always paid on time, so I'm happy for them to stay on. Is it legal to refuse to take part in the HAP scheme? If so, how do you suggest I handle this with my tenants?
A The Housing Assistance Payment (HAP) was first introduced to parts of Dublin in 2014 and is a social housing support being introduced by local authorities. It is currently available in most areas.
HAP has replaced Rent Supplement for those with a long-term housing need who qualify for social housing support. The introduction of HAP means that local authorities can provide housing assistance for households with a long-term housing need, including many long-term Rent Supplement recipients.
Under HAP, local authorities will make payments on behalf of tenants directly to landlords in respect of rent. HAP tenants will be responsible for finding their own accommodation in the private rented sector. The main benefit of the scheme from the landlords’ prospective is that rental payments are paid directly into their bank account on the last Wednesday of every month, and since January 1st, 2016, you may also be able to avail of some additional tax reliefs. However, in order to be approved, your property needs to meet certain standards, you need to have your tax affairs in order and have the tenancy registered with the RTB.
Frankly, I am unable to give you a definitive answer as to whether you are legally obliged to accept the HAP scheme from your existing tenants. The scheme is still relatively new and there does not appear to have been any legal precedent set on a dispute such as this.
However, in my experience, such initiatives cannot be retrospectively imposed on a landlord given the existing tenancy was not under the HAP scheme initially. Moreover, such arrangements should always be by mutual agreement. Were your tenants in receipt of rental allowance previously? If they were, this is effectively the same thing and you shouldn’t have anything to fear.
Is there a specific reason that you do not want to participate in the HAP scheme? Unless you have a compelling reason, your decision not to partake could undermine your ability to keep your existing tenants who, as you have said, are very nice and have always paid their rent on time. Not all landlord-tenant relationships are as good as your sounds, so, you need to make a commercial decision and decide if ultimately your decision to opt out of the HAP scheme is potentially worth losing your tenants over.
There is a chronic shortage of rental property nationally and one suspects you may well be able to re-let the property should your current tenants vacate, but there is no guarantee that they may be as good a tenant. Gerard O'Toole is a Chartered Residential Agency Surveyor and member of the Society of Chartered Surveyors Ireland, scsi.ie
