Rent receivers appointed by banks to over 2,000 properties

Wednesday 11 December 2013 22.51
Rent receivers are appointed by banks in cases where landlords are collecting rent but not passing it on to the bank
Rent receivers are appointed by banks in cases where landlords are collecting rent but not passing it on to the bank

Irish banks have appointed receivers to collect rent from tenants in 2,000 properties where landlords have been refusing to pass the rent on to the lenders.

The information emerged in a Dáil reply by Minister for Finance Michael Noonan to Fianna Fáil finance spokesman Michael McGrath.

Rent receivers are appointed by financial institutions in cases where landlords are collecting rent but not passing it on to the bank to pay a mortgage in arrears.

Bank of Ireland had appointed rent receivers to over 1,235 properties by the end of June.

AIB has appointed rent receivers to over 540 residential properties with a further 250 properties expected to be covered by the end of the year.

Permanent TSB said it has appointed rent receivers over 144 properties and the appointment of a receiver is pending for a further ten properties.

The bank advised the Department of Finance that appointments were made on a case-by-case basis.

Mr McGrath said the figures showed evidence that some buy-to-let mortgages were in trouble because landlords were collecting rents from tenants but not passing it on to lenders.