The campaign for a Deposit Protection Scheme, which is running in collaboration with student unions across the country, highlights the issue of unlawful deposit retention in the Irish rental sector. According to the most recently available 2024 RTB data, in 94% of deposit retention disputes, landlords were found to have acted unlawfully.

Commenting on the issue of unfair deposit retention, Ann-Marie O’Reilly, Threshold’s National Advocacy Manager said: “The unlawful retention of rental deposits is a well-documented issue, and one with a proven solution, that is already in operation in other countries like the UK. Currently, too many renters in the private sector here are having their deposits unlawfully retained and no renter can afford to lose their deposit. A fair and balanced legal Deposit Protection Scheme would remove uncertainty and stress for renters and landlords alike.”

A Deposit Protection Scheme would mean deposits are lodged with an independent third party ensuring their prompt return to a tenant at the end of a tenancy unless a bona fide issue arises. Where a landlord needs to claim expenses at the end of the tenancy, they would have to provide proof of expenses to retain some of the deposit, which would ensure greater transparency.

Threshold’s campaign has already gained widespread support. Between March and April, the charity – in collaboration with Unions of Students Ireland (USI), University College of Dublin SU (UCDSU), Dublin City University SU (DCUSU), Dún Laoghaire Institute of Art, Design & Technology SU (IADTSU), Technological University of the Shannon SU (TUSSU) and University of Galway SU (CnMLOG) – collected over 1,000 signatures in support of the a Deposit Protection Scheme during several Renters’ Rights days that were held on college campuses across the country.

A campaign report, produced by Threshold, highlights testimonials from renters and reveals repeated incidents of deposits being unfairly withheld with little - or in some cases - no proof provided.

Nathan Murphy , Vice President for Campaigns at the Union of Students Ireland (USI), said:

“Students are among the most vulnerable renters as it is often their first time renting. Each year, we see students who have had hundreds – and sometimes thousands – of euro in deposits retained by landlords or management companies. Unfortunately, proof is rarely provided to the student that would explain why they did not receive their full deposit back, or sometimes the students are ‘ghosted’ by their landlord. A DPS would bring much needed protection for student renters”.

Threshold’s proposed legislation calls for a custodial, self-funded, not-for-profit scheme in which deposits would be lodged with an independent third party for the duration of the tenancy. The proposal, if implemented, would mean that:

• There would be no cost for landlords or tenants to participate
• Landlords would be required to provide clear proof when seeking to retain deposits
• There would be defined timelines for repayment

Senator Laura Harmon, Threshold Board member, commented on the DPS Bill:

“We know from international experience that DPS models work, as seen in the North and across the UK. They create transparency and trust in the rental sector and protect renters by recovering what is rightfully theirs. Deposit retention is not an unsolvable problem. A proven solution exists and now we need the political will to implement it”.

Threshold is urging TDs and Senators to use their voice to draw attention to this solution. If implemented, a Deposit Protection Scheme would be of benefit to the private rental sector, ensuring greater transparency for landlords and tenants.