Increase in number of Cork renters claiming their landlords retained their deposit 

HOUSING charity Threshold said it is seeing a rise in the number of renters seeking support over landlords retaining their rental deposit, with more than 110 households contacting the Cork office on the matter since the start of the year.

A deposit protection scheme would involve a deposit being lodged with an independent third party, which Threshold asserts would result in a fairer outcome in relation to deposits at the end of tenancies.

Speaking to The Echo, assistant manager of Threshold’s southern regional services office, Regina Baylor, said the unlawful retention of a deposit can have major impacts on renters.

“The unlawful retention of a deposit can have a knock-on effect on a renter’s ability to finance future housing arrangements, such as moving into a new home,” said Ms Baylor.

“In some cases, tenants may be forced to return to their family home to save for a new deposit for accommodation or use money that was being saved for another critical expense to fund a new deposit,” she added.

“The establishment of a Deposit Protection Scheme would ensure the fair return of a tenant’s deposit once they finish their tenancy, reducing additional financial pressure and stress that they may experience.” 

Impact Report

According to Threshold’s Q2 2023 Impact Report, 195 households nationally in the second quarter of the year looked for help from Threshold when their landlord failed to return their deposit.

This compares to 172 households seeking support on deposit retention issues in the same quarter in 2022.

Between January and June of this year alone, a total of 338 households have sought support with this issue.

In 2022, a total of 701 households contacted Threshold for advice and support on having their deposit returned.

In a bid to reduce deposit retention issues, Threshold has proposed the establishment of a custodial model, where a landlord is required to lodge a deposit with a registered tenancy deposit scheme.

At the end of the tenancy, the tenant or landlord can apply to the scheme for the deposit to be returned. If both the tenant and landlord agree, the deposit is returned in part or in full.

If there is a disagreement, mediation is held to resolve the matter, with the Residential Tenancies Board (RTB) becoming involved if disagreement persists.

'Not Right'

Threshold CEO, John-Mark McCafferty, said the Government legislated for a deposit protection scheme in 2015, but such a scheme was never established.

“There are renters all over the country who cannot afford to lose their deposits, nor is it right that this money be taken from them.

“While renters can challenge the deposit being unfairly retained and take the matter to the RTB, this can be a lengthy and difficult process,” he continued.

Mr McCafferty said a Deposit Protection Scheme is “very much needed to ensure a quick and fair return of deposits to a tenant once they finish their tenancy”.