Gerard Phelan Ordered to Pay Nephew After RTB Ruling

Gerard Phelan must pay €500 in damages to his nephew within 28 days following a ruling by the Residential Tenancies Board.

The dispute stems from a year-long living arrangement in Swords, north Dublin, that the uncle described as temporary but the tribunal classified as a formal tenancy.

Phelan allowed Brian O'Rourke to move into the family home in September 2021, stating his nephew was facing homelessness. At the time, Phelan and his wife were living in his mother-in-law's house for insurance reasons while the Swords property remained vacant. He told the tribunal there was no intention to create a tenancy agreement, viewing the setup as a rent-a-room scheme despite not living at the property concurrently with O'Rourke.

Phelan argued the arrangement was not a lease because O'Rourke never paid utility bills or provided money. He noted that O'Rourke agreed to do gardening but could not perform the tasks due to hay fever. The uncle maintained that he sent a spreadsheet to O'Rourke to show the cost of maintaining the house, not to demand rent, and that he later told his nephew there was no need to pay rent.

O'Rourke contended that a tenancy existed from the start. He pointed to the spreadsheet, which listed rent arrears and utility bills, and stated it showed rent due of €1,100 per month. He said he requested a formal lease that was never provided. O'Rourke claimed he paid €1,000 in September 2021, though he lacked bank records to prove it. He also stated he may have made cash payments and that he tended to the garden.

The relationship deteriorated over the following months. Phelan told the tribunal that it became apparent O'Rourke was never going to pay rent, so he told him to rent out other rooms. O'Rourke did so, and the rent from those other tenants went to Phelan. Phelan said he was unhappy with the arrangement after about a year, citing broken trust. On October 1, 2022, he changed the locks and placed O'Rourke's belongings in bags. Phelan said he would have given more time if O'Rourke had been willing to leave.

O'Rourke received an email from his uncle arguing that no notice was required because it was a rent-a-room situation. He told the tribunal he maintained the garden and believed he had paid rent. Phelan added that O'Rourke's father gave him €5,000 at the end of the arrangement.

The tribunal found that a tenancy had been in place. It stated that Phelan fundamentally misunderstood the terms of the rent-a-room scheme. The body was satisfied that rent was set at approximately €1,100 per month and that, on the balance of probabilities, O'Rourke never paid any rent. It concluded that Phelan carried out an unlawful termination of that tenancy.

In assessing the award, the tribunal noted that Phelan genuinely thought he was entering into a family arrangement or rent-a-room agreement. It also acknowledged that O'Rourke lived in the home rent-free for about 11 months and did not contribute to utility bills. Despite these factors, the board determined that €500 was an appropriate award for the damages.