Prospective tenants pay to view accommodation

Prospective tenants face fees to view properties – another indication of the cutthroat nature of the current market for renters.

A minority of landlords in Galway are reported to be taking cash off would-be tenants who want to view houses.

And the practice may be unlawful, according to housing charities.

In some cases, landlords use the fee as a deposit to secure a viewing and the money is returned once they have viewed the property.

It’s understood that the high level of demand to view rental units has prompted landlords to introduce the refundable fee, which cuts out the ‘time-wasters’ and ‘tyre-kickers’.

But in some instances, the money is being kept, even if the viewer does not secure the property.

One third level student told the Tribune that she paid €15 to view a house near NUIG, and it was not refunded. “There isn’t much out there. I had no choice,” she said.

Threshold, the national housing charity, and Galway Simon, which provides support and accommodation services to homeless or those at risk of homelessness, have heard anecdotally that viewing fees are being charged.

In a statement to the Tribune, Karina Timothy, Manager of Threshold’s Western Region Services, said: “It’s something we have come across anecdotally but have no hard cases to back it up. Tenants should not be charged by landlords to view a property.”

She pointed out that a new section inserted in the Residential Tenancies Act during the summer suggests that the only money that may be charged for securing a tenancy is the deposit and advance rent.

“This would appear to restrict the use of viewing fees. So the charging of viewing fees by a landlord or agent could be unlawful.

“For agents, the charging of such fees is prohibited by section 90 of the Property Services (Regulation) Act 2011. The prospective tenant should notify the Property Services Regulatory Authority (PRSA).”

Ms Timothy said that students should also be aware that new legislation means landlords can only ask for one month’s rent as a deposit for student accommodation.

“The recent legislative changes, applicable to Student Specific Accommodation (SSA), limits the amount of advance rental payments that a landlord can demand from a tenant. A landlord can now only demand one month’s rent in advance. We have noticed that SSAs have continued to advertise their properties as rent paid in two moieties,” she said.

In relation to viewing fees, Karen Golden, CEO of Galway Simon said staff at the housing charity have heard of this phenomenon anecdotally, “but we haven’t come across it ourselves.”

“This may be a scam and if not it would be difficult to fathom when the scarcity of housing is already putting people under such immense pressure. We would advise people to contact Threshold – this would be more their area than ours,” she said.

The Residential Tenancies Board (RTB), which regulates the rental sector, said that its remit “does not extend to this particular issue highlighted”.

A spokesperson said that “once a tenancy comes into existence, tenants and landlords come under the remit of the RTB and both have rights and responsibilities as set out in the RTB’s governing legislation”.

But because prospective tenants viewing properties and landlords charging to view properties do not have an agreement, the issue is outside of RTB’s remit.