Legislation to tackle hidden fees for students

A bill to ensure that mandatory service charges by student accommodation providers are included in rental prices has been put forward to the Oireachtas.

Labour Party Senator Laura Harmon said that the safeguards proposed by the legislation have long been promised by the Government, and that the Minister for Further and Higher Education James Lawless must now act to progress her legislation.

Senator Harmon said: “As a former USI president, I understand uniquely the struggles and challenges faced by so many students when it comes to facing the costs of attending college. My legislation will provide clarity and transparency when it comes to the rents charged by accommodation providers. It will stamp out bogus charges which are effectively rent increases.

“Some student accommodation providers use so-called 'mandatory fees' as a way to circumvent rent controls which is driving up already very high costs of accommodation for students.

“Service charges like security and building related costs are often added on, which are then added onto the agreed rent,” she said.

She said that for students at Dublin City University last year, there was a 1.7% increase in monthly rents, but when service charges were added, the total increase came to almost 7%.

“Cork is now the second most expensive place in Ireland to be a student with monthly costs of €1,667 on average. Average accommodation costs are rising year on year and we cannot allow providers to use this loophole in the rent controls to increase rents any further for students,” said Senator Harmon.

Cork City councillor Ciara O’Connor said: “With both UCC and MTU on our doorstep, affordable student accommodation is vital for our community.

“Mandatory charges should never be used to increase the real cost of rent. Fair and transparent rents don't just benefit students, they also help ease pressure on the wider rental market, making it easier for families, workers and young people to find a home," she said.

Senator Harmon concluded: “I hope that the minister will work with me on enacting this much needed protection for students and their families.

“Students are already under huge financial pressure, and many are facing impossible choices between torturous commutes, paying above the odds for accommodation or dropping out of college altogether. It’s unacceptable and we need to see action now,” she said.