Why is the Good Landlordship Act being introduced?
At EHR, we would like to share important information with you about the introduction of the Good Landlordship Act, which came into effect on 1 July 2023.
This Act is generally intended to address landlords who exhibit undesirable rental behaviour and to establish clear rules for good landlordship.
Specific rules have been drawn up to define what good landlordship entails. These rules apply to all landlords.
Rules for Good Landlordship
The Act outlines what good landlordship does and does not involve, summarised as follows:
- No discrimination
- No intimidation
- A maximum of two months’ basic rent as a deposit
- Tenancy agreements must be drawn up in writing
- Providing tenants with written information about their rights, obligations, deposit, service charges, and details of the property manager and reporting point
- Having a written policy to prevent housing and candidate tenant discrimination
- Tenants must be provided with the housing enjoyment they can reasonably expect
- Regularly carrying out (or arranging) inspections
Some of these obligations are self-evident, but we will discuss three topics in more detail.
Measures against Discrimination
Landlords must ensure a clear and transparent selection procedure with objective selection criteria.
The method of selecting the chosen tenant must also be justified to unsuccessful candidates.
This process must be documented in writing and communicated publicly by the landlord or their rental agent (EHR in this case).
Deposit
The deposit in tenancy agreements is limited to a maximum of two times the basic rent and may only be offset against outstanding rent debts, service charges, or damage caused by the tenant after the tenancy ends.
The maximum repayment period has also been adjusted and is now set at 14 days if no deductions are required.
Obligation to Provide Housing Enjoyment
Housing enjoyment refers to the sense of comfort, satisfaction, and contentment derived from living in a pleasant and enjoyable environment. It encompasses various aspects of residential life, such as the quality of the property, the neighbourhood, amenities, and overall liveability.
The landlord must contribute to ensuring this housing enjoyment and provide what the tenant can reasonably expect in this regard.
Deferred maintenance, leaks, malfunctioning equipment, or installations, for example, infringe on the tenant’s housing enjoyment.
In the event of emergencies, swift and adequate solutions are required from the landlord or their property manager.
Penalties
Mayors and aldermen are tasked with enforcing this Act and may impose fines. Fines can amount to up to €90,000.00.
A rental permit (if applicable) may also be revoked in case of violations. This is therefore a serious matter.
Good Landlordship with EHR Property Management
At EHR, we have already adapted our processes to the new legislation for some time. You can rest assured that, with EHR’s reliable handling of your property rental, you will comply with all these new obligations.
If you want complete certainty of meeting all aspects of the new Act and full support throughout the entire rental process, you can outsource this to us by using EHR’s Property Management services.
In that case, contact us for more information and to discuss how we can fully support you in this process.
The EHR team is ready to help you navigate the complexities of the (new) legislation, optimally protect your property investment, and continue renting professionally and without worry.
Team EHR