Information for property owners and landlords

The Housing Assistance Payment (HAP) scheme is a local authority-provided social housing support that works for landlords, agents and tenants alike. First introduced in 2014, HAP provides housing assistance for households that qualify for social housing support, as well as many long-term Rent Supplement recipients.

HAP landlords benefit from the following:

• Payments received directly from the local authorities on a tenant’s behalf
• +99% rent payment rate
• All payments are made electronically, no rent collection necessary
• HAP payments are made regardless of a change in tenant income
• As of 1 January 2016, landlords who rent to tenants in receipt of social housing supports like HAP may avail of increased tax relief - allowing property owners to claim 100% relief on their mortgage interest, as an expense against rental income.
• No up-front private rental standards inspections or tax compliance checks - both can follow after the tenancy and the rental payments have started, if required.

For more information, go to www.hap.ie or contact hap@housingagency.ie

The Rental Accommodation Scheme (RAS) was established in 2004. It placed responsibility on local authorities to meet the accommodation needs of individuals in receipt of rent supplement for 18 months or longer, and who are assessed as having a long-term housing need. There are two types of RAS arrangements: rental availability arrangements and tenancy-by-tenancy arrangements.

Rental availability arrangements are the most common type. Under these arrangements, benefits for landlords include:

• Guaranteed rent from the local authority for a specified period, no loss of income for vacant periods
• All payments are made electronically, no rent collection necessary
• No need to advertise or interview new tenants
• As of 1 January 2016, landlords who rent to tenants in receipt of social housing supports such as RAS may avail of increased tax relief - allowing property owners to claim 100% relief on their mortgage interest, as an expense against rental income

Tenancy-by-tenancy arrangements differ in that the agreement remains in place for a specific tenant and ceases when the tenant moves out. Payments are not made for vacancy periods under this arrangement.

For more information, go to RAS Q&A.

Standard leasing arrangements were first introduced in 2009 and are now delivered under the Social Housing Current Expenditure Programme. The scheme allows local authorities and approved housing bodies to lease suitable properties for periods of between 10 to 25 years. Standard leasing arrangements can cater for new builds or second-hand homes.

Under standard long-term leasing, property owners:

• receive payments regardless of vacancy periods
• are paid up to 80/85% of the open market rent (depending on management service charge)
• have no rent collection or rent arrears obligations
• do not have to register with the Residential Tenancies Board (RTB)
• retain responsibility for the structure and keep the property insured

The local authority is landlord to the tenant and is responsible for day-to-day maintenance. Rent is reviewed on the third anniversary of the commencement date of the lease by reference to the Harmonised Index of Consumer Prices (HICP), and every third year thereafter.

• Standard Leasing Brochure

The template leases issued by the Department of Housing, Local Government and Heritage are available below:

• Agreement for lease
• Standard long-term leasing (no management fee)
• Standard long-term lease (management fee)

Under the Housing for All plan, The Government will phase out the use of current leasing models by 2025 through phasing out new entrants to the current leasing arrangements.

You should contact your respective local authority to discuss any potential leasing proposal.

The Government's ambition to increase social housing supply across the country in the period to 2021 is articulated in the detailed annual targets that have been set out in Rebuilding Ireland: Action Plan for Housing and Homelessness. The achievement of these targets requires a blended approach to delivery, utilising new build arrangements, acquisitions as well as long term leasing.

The Department of Housing, Local Government and Heritage has introduced the Enhanced Long-Term Social Housing Leasing scheme in order to:

•  Ramp-up scale of delivery under the leasing mechanism
•  Target newly built or yet to be built houses and apartments for leasing;
•  Provide for long term leases that require the property owner to provide day-to day-maintenance of the homes under a schedule of Management Services.

The Housing Agency is the national coordinator for the Scheme on behalf of the local authorities and the Department and manages and administers proposals for the Scheme.

The term of the lease is 25 years and each proposal must include a minimum of 20 homes (properties can be located across multiple sites). In contrast to standard leasing agreements (above), it is the owner, not the local authority, who manages day-to-day maintenance of the properties under a schedule of management services.

Under enhanced leasing, property owners:

• are guaranteed payments for 25 years, regardless of vacancy periods
• are paid up to 95% of market rent is payable, reflecting the additional requirements to the performed by the property owner
• have no rent collection or rent arrears obligations
• do not have to register with the RTB
• are responsible for day-to-day maintenance of the properties under a schedule of management services
• retain responsibility for the structure and keep the property insured

The local authority is landlord to the tenant. Rent is reviewed on the third anniversary of the commencement date of the lease by reference to the Harmonised Index of Consumer Prices (HICP), and every third year thereafter.

This scheme is being made available to property owners who can deliver properties at scale and provide the requisite property maintenance services under the terms of the lease.

For more information about the scheme, please see:

• Enhanced Leasing Brochure
• Enhanced Leasing Terms and Conditions
• Enhanced Leasing Book of Appendices

While the Enhanced Leasing Scheme is still open for applications, it is due to be phased out by 2026 in line with leasing in general, under the Housing for All plan. Any applications under the Enhanced Leasing Scheme from 1st January 2022 will need to be supported by Housing for All delivery targets which have been allocated to Local Authorities.

The full details and terms of the scheme are set out in the Call for Proposals document.

All proposals will be assessed by the Housing Agency, in conjunction with the relevant Local Authority, in order to establish whether the site is suitable for social housing, whether the specific proposal meets the housing need in the area and whether the proposed rents are in line with open market rents. Where there is a dispute over the relevant open market rent, proposals can be referred to an independent valuer for determination. The full details of the scheme and marking criteria, including financial and funding pre-requisites, are set out in the Call for Proposals document.

Queries and submissions on Enhanced Leasing can be sent to: enhancedleasing@housingagency.ie.

The Repair and Leasing Scheme (RLS) was developed to assist property owners in bringing vacant properties in need of repair back in to use. In return, the property is leased to a local authority or an approved housing body for use as social housing. The cost of the repairs is offset against the agreed rental payment until the value of the works is repaid.

The ideal units targeted under this scheme will need a low-level of investment to bring them to the required standard for renting. It is not envisaged that any level of significant structural works will be required. The timeline for delivery of units under RLS is targeted between two to six months. The property must be vacant for at least one year.

The standard lease and rental availability agreement are the two types of arrangements available under RLS.

Under the scheme, property owners:

• Can receive a loan of up to €80,000 per unit (including VAT)
• Are guaranteed rent for the term of the lease (5 – 25 years),
• Are paid up to 80/85% or 92% of the rent depending on the type of agreement
• retain responsibility for the structure and keep the property insured
• have no rent collection or rent arrears obligations

For more information about the RLS, please see:

• Repair and Leasing Scheme 

Queries about Repair and Lease can be sent to: leasing@housingagency.ie