Rent arrears owed by Dublin City Council’s social housing tenants have hit almost €38 million, their highest ever level and a €4 million increase since the Covid-19 pandemic began.
As The Irish Times reports, in December 2021, just over 64 per cent of the council’s 25,000 tenants were in arrears on their rent. While about half were behind in their payments by less than €500, 41 had racked up debts of more than €27,000 each through years of arrears.
At the end of 2019, the council was owed €33,729,994 in unpaid rents. At the end of last year that had increased to €37,895,467.
Council rents are based on ability to pay with tenants charged 15 per cent of the principal earner’s income, plus a maximum of €21 a week per “subsidiary earner”, usually adult children living with their parents. The council’s average weekly rent charge is €71.09 or €309 per month.
Tenants are required to tell the council if their financial circumstances change, ie if they get a job or a pay rise, but Tara Robertson of the council’s housing department said a significant number don’t. “If income decreases people tell us, but when it increases that’s not as likely.”
In 2009, €19.5 million was owed to the council, but Ms Robertson said an assessment “post Celtic Tiger” showed “ people hadn’t been declaring quite significant incomes”.
Retrospective debits
The council undertakes to assess its tenants circumstances every two years, and where incomes have been underdeclared it applies “retrospective debits” to recoup money owed.
The council had been “at the mercy of the tenants in employment to advise us when their income changed”, she said.
However, since 2020 it has had access to tenants’ income details through the Local Authority Verification Application system, developed in conjunction with the Department of Employment Affairs and Social Protection.
This meant rent charges could be accurately applied which was “very beneficial to us and the tenant”, she said.
The council had an early intervention policy in relation to arrears which was “quite effective” she said. “The more money people owe the harder it is to make inroads into the arrears.”
Where the tenant showed a “wilful disregard of the obligation to pay” the council would seek the “ultimate sanction of repossession”.
The council secured 12 repossession orders in the courts last year, nine of which were still “live” she said, while three “lump sum settlements” of €30,500 in total were made. However, there were no evictions.
