Residential Letting Agreements-Landlord’s Obligations

The obligations of a landlord in a residential letting or tenancy
A landlord’s obligations in a residential tenancy and letting can be very onerous. A good working knowledge of your rights and obligations can be very important.


The governing legislation is the Residential Tenancies Act 2004.

The residential tenancies act 2004

The Residential Tenancies Act 2004 applies to every dwelling which is the subject of a tenancy.

There are some limited exceptions where the residential tenancies act will not apply but this report is intended for the vast majority of residential lettings which have arisen over the last 10 years in Ireland.

Part 4 Tenancy

One of the most important effects of the residential tenancies act is that where a person has been in occupation, under a tenancy, for a continuous period of 6 months then, provided no notice of termination has been served, then the tenancy will continue for 4 years.

This right of the tenant is of huge significance for many landlords and this tenancy is then called a Part 4 tenancy.

Landlord and Tenant’s obligations

All of these obligations are set out in the act and are incorporated in the standard letting agreement which is used by most solicitors in Ireland.

You can see this agreement at www.dsba.ie (Dublin Solicitors Bar Association) so if you are unsure as to your obligations as a landlord or tenant have a look there first or consult your existing agreement if you are currently a landlord/tenant.

Rent/Rent review

Rent may not be set at an amount greater than the market rent for the tenancy in question and any disputes can be referred to the Tenancy Tribunal of the Private Residential Tenancies Board (www.prtb.ie)

Termination of Residential Tenancies

Tenants of fixed term tenancies ie the standard 12 month letting agreement common in Ireland have security of tenure from the word go as a result of their 12 month agreement.

Termination of a residential letting by the Landlord

A landlord can terminate a Part 4 tenancy prematurely on one of 6 grounds laid down by the legislation and only then when he serves a notice of termination stating the ground and has served the notice in accordance with the notice periods laid down by the act.

The 6 grounds for premature termination of a Part 4 tenancy by the landlord are

1.The tenant has failed to comply with their obligations. However the landlord has to notify them of their failure and give them a reasonable time to remedy the failure.
2. The property is no longer suitable for the tenant.
3. The landlord intends entering into an agreement within 3 months to sell the property.
4.The landlord requires the property for his own use or for a family member (but he must specify who he needs it for and for how long)
5. The landlord intends refurbishing or renovating the property.
6. The landlord intends changing the use of the property to some other use.

If the landlord uses one of these grounds dishonestly then the tenant can make a complaint to PRTB and they can award compensation to the tenant.
PRTB awarded over €5,000 to a tenant who had been illegally evicted in Galway in 2006.

Termination of a residential letting by the tenant

The tenant may terminate by giving a notice of termination to the landlord with the required notice period.

Unlike the landlord the tenant can bring a Part 4 tenancy to an end without giving a reason.
The first 6 months
A landlord can terminate a tenancy, provided it is not a fixed term tenancy, within the first 6 months without giving a reason.

However he must give the statutory notice period.

12 month fixed term tenancy

The right to terminate prematurely in this instance is limited to situations where either party is in breach of the agreement or in breach of their statutory obligations.

Landlords need to be careful here as the fixed term tenancy gives more protection to the tenant than they would have if they only had a Part 4 tenancy as this can be terminated in the first 6 months without giving a reason.

Further Part 4 tenancies

Where a tenancy continues to the end of the 4 years of the part 4 tenancy and neither party serves notice of termination then a further Part 4 tenancy will arise and will last for 4 more years.

Multiple Occupants
Security of tenure applies to any premises occupied by multiple tenants from the earliest date at which any of them has 6 months occupation clocked up.

Contracting out

You can not contract out of Part 4 of the act which means no matter what you want to agree with the tenant he has his statutory entitlement to a Part 4 tenancy.

Notices

Notice must be served to terminate in all cases. The periods are different for tenants and landlords.

Termination notice
This must

Be written
Signed by the landlord/tenant
Specify the date of service
If the tenancy is for more than 6 months state the reason
The date of termination
Notice Periods
Where the landlord wants to terminate where the tenant is in breach the period depends on the default-anti social behaviour requires only 7 days notice.

For any other reason the period is 28 days and if it is non payment of rent then the landlord must first notify the tenant in writing that the rent is overdue. He must wait 14 days and then serve the notice of termination of 28 days.

Termination by landlord

Length of tenancy Notice period

Less than 6 months 28 days

>6 months and <12 months 35 days Between 1 and 2 years 42 days Termination by tenant Length of tenancy Notice period Less than 6 months 28 days >6 months and <12 months 35 days

Between 1 and 2 years 42 days

Time limit for disputing a notice of termination

Must be referred to PRTB within 28 days of receipt of the notice.
Residential Letting Agreement Template

The Private Residential Tenancies Board-PRTB

What is the tenancy registration system?

It is a requirement on all landlords to register details of their tenancies within one month of their commencement on form PRTB1 available from this website.


The information on the register will be used to provide aggregate data on the private rented sector. Personal details such as the tenant name, landlord name, rent, etc. will not be made public.

Tenancy Registration Fees

Fee Payable

€70 Per tenancy being registered on time i.e. within 1 month after the commencement of the tenancy.

€300

For multiple tenancies in the one building being registered at the same time and all on time (i.e. within one month of the commencement of the respective tenancies) by the one landlord (please staple the multiple forms together).

€140

(Late Fee)*

In all circumstances where the tenancy is being registered more than 1 month after the commencement of the tenancy, an additional fee of €70 is payable for these late registrations (i.e. the total fee is €140 per tenancy). There are no exceptions to the late fee and the composite fee is not available to late registrations of multiple tenancies within the one building.

No Fee

Where 2 payments in respect of the dwelling have been made to the Private Residential Tenancies Board in the previous 12 months.

No Fee

* The Residential Tenancies Act 2004 does not allow for any exemptions from the requirement to pay the late fee in any case. As such the PRTB has no power to waive the late fee in any case regardless of the circumstances or the reasons for the delay.

Why does the form ask for the PPS numbers and other details?

The PPSN is the State identification number for dealings with public sector bodies. It will act as the unique tenant and landlord identification number on the registration record. Most of the other details are required as a record of the tenancy in case disputes arise or so as to gather aggregated data on the sector. Certain contact details are also requested. This is necessary as the registration application must be made within one month of the commencement of the tenancy and, if later, the landlord will have to pay a double fee (currently €140).

What dwellings are exempt from the tenancy registration system?

Business premises, even where partly residential

A dwelling to which Part II of the Housing (Private Rented Dwellings) Act 1982 applies (i.e. formerly rent controlled dwelling occupied by the “original tenant” or his/her spouse) or to which Part II of the Landlord and Tenant (Amendment) Act 1980 applies (i.e. long occupation equity lease tenancies)

A dwelling let by a local authority or voluntary housing body

A dwelling occupied under a shared ownership lease

A holiday let

A dwelling in which the landlord is also resident

A dwelling in which the spouse, parent or child of the landlord is resident and there is no written lease or tenancy agreement

A dwelling that is occupied rent free

If a dwelling is available for renting but has not yet been let, there is no requirement to register.

Will the PRTB provide confirmation of exemption from the tenancy registration system ?

No, the PRTB will not routinely provide for individuals confirmation of exemptions from the tenancy registration system.

What happens if I don’t register?

Until such time as a tenancy has been entered onto the PRTB’s register of tenancies, the PRTB is precluded from dealing with any dispute relating to the tenancy that may be referred to it by the landlord. The registration requirement applies only to ongoing tenancies so it is important that the registration process be completed as quickly as possible in case any difficulties arise in relation to the tenancy.

What is the PRTB doing about unregistered landlords?

The steps being taken by the PRTB to pursue compliance with the registration requirement are in accordance with the provisions of the Residential Tenancies Act 2004 and, in particular, sections 144 and 145. They include the issue of notices to landlords and/or occupiers of the dwellings in question, and the prosecution of offenders for non-compliance with the registration requirement. Details of these notices are set out below.

Landlord 1st Notice – section 144(2)

Where the landlord’s address is available to the PRTB, a notice is served on the landlord stating that in the PRTB’s opinion there is a tenancy in the dwelling in question that requires to be registered and that an application for registration must be made. The notice requests the landlord to furnish within 14 days the reasons why the landlord may consider that they do not have to register.

Landlord 2nd Notice – section 144(3)

Where the landlord fails to respond to the 1st notice, within the 14 day period or a response was received within the 14 day period which did not result in the PRTB changing their opinion on the registration requirement applying, a notice is served on the landlord stating that the landlord is required to register within 14 days and failure to register within this timeframe will result in the landlord being guilty of an offence under the Residential Tenancies Act 2004.

Occupier’s Notice – section 145(4)

Where the landlord’s name or address is not supplied, a notice is served on the occupiers requiring them to supply within 14 days any information in their possession that could lead to the PRTB ascertaining the identity of the landlord or of his/her address. That notice also states that failure to respond within the 14 days will result in the occupier being guilty of an offence under the Residential Tenancies Act.

What happens if a landlord or occupier does not comply with the PRTB’s notices about not registering?

If the landlords and occupiers fail to comply with the provisions of the Residential Tenancies Act 2004 as outlined above, the PRTB will exercise the power open to it under the Act in relation to prosecutions. However this process may take time as in order to maximise success and effective enforcement, it is essential that the information available to the PRTB is accurate and that the PRTB operates in accordance with the appropriate procedures. This is because the successful conviction of the landlord or tenants of criminal offences under sections 144 or 145 respectively requires a high standard of proof and a correct name and address is vital to this process.

Are landlords eligible for tax relief on interest paid on borrowing to purchase investment properties?

Landlords should be aware that the Finance Acts have been amended to explicitly provide that compliance with the registration provisions contained in the Residential Tenancies Act registration provisions is a condition of eligibility for mortgage interest relief on residential properties. It is a matter for individuals to satisfy themselves that they are in compliance with the Residential Tenancies Act.

The PRTB will not routinely provide letters confirming exemption from the Act. The PRTB propose to supply the Revenue Commissioners with information on unregistered tenancies of which it becomes aware so that, as well as facing criminal prosecution, the landlords in question will lose any mortgage interest relief relating to the dwelling.

What do I do if my tenant leaves my rented property?

If your tenant(s) leaves the rented property then it is deemed to be the end of the tenancy. You will need to register with the PRTB the new tenancy within one month of the new tenants moving in.

If at least one of the tenants remain in the rented property and the other tenants are replaced by new tenants, then this would be considered an update of the tenancy details. If there is a change of rent you are required to notify the PRTB and when doing so, you are required to advise of any other change of the tenancy details that have arisen in the interim – no fee is payable when providing an update of tenancy details. The tenancy registration form, which is downloadable from this website, can be used for this purpose also.

I lease my property to a management company who in turn rent out the property to individual tenants; I have no relationship with the tenants of the management company. Do I need to register?

In the above scenario there are two actual tenancies and they both need to be registered. Under the RTA, the landlord is legally obliged to register the tenancy where the dwelling is leased to the management company and the management company is legally obliged to register the tenancy with the individual tenant(s). Each tenancy will then have a unique RT number assigned to it.

The above applies in all arrangements where the dwelling is sublet and is ultimately a residential dwelling other than for those dwellings excluded in Article 3 of the RTA (a list of excluded dwellings)

What happens if I change the Rent?

The landlord must inform the Board of a change in the rent payable in respect of a dwelling within one month of the change occurring.

What happens if one of the tenants moves out and is replaced by a new tenant?

Landlords should at the same time notify the Board of any other change to the registered tenancy details e.g. a replacement tenant. No fee is payable for informing the Board of these changes.

What is duration of the registration?

Once a tenancy is registered it remains a registered tenancy for as long as the tenancy remains in existence. Once the tenancy is terminated, any new tenancy created in respect of the dwelling must be registered with the Board.

Why am I being asked to Re-register my tenancy?

Under the provisions of Part 4 of the Act if the tenancy has not previously been terminated it will be deemed to be terminated when it has lasted 4 years and a new tenancy will then commence between the parties. This new tenancy must be registered with the Board and the registration fee paid.

What do I do if the dwelling ceases to be let?

If the dwelling ceases to be let, the Board should be notified so that the record can be removed from the register – no refund of the registration fee is payable in such circumstances.

Enforcement of registration requirements.

The registration of a tenancy is a legal requirement on the landlord. Landlords failing to register a tenancy may be guilty of an offence and upon conviction shall be liable for a fine of up to €3,000 and/or up to 6 months in prison, along with a daily fine of €250 for a continuing offence.

What is the published register?

The Board maintains a published register, which is available for public inspection at the Board’s office. However, the published register will not contain any information that could lead to the disclosure of the identity of the landlord or tenant(s) or the rent payable.

Tenancy Disputes in Residential Letting Agreements

The tenancy tribunal plays an important role in the resolution of tenancy disputes.

The resolution of tenancy disputes in residential letting agreements is governed by Part 6 of the Residential Tenancies Act 2004. The dispute resolution committee of the PRTB replaces the courts.


The main areas of dispute
are

* deposit retention
* illegal evictions
* invalid notices of termination
* over-holding
* rent arrears
* breaches of obligations
* anti-social behaviour

A dispute may be referred for Mediation, Adjudication, Tribunal Hearing.
If the dispute is not resolved by mediation or adjudication then it will be referred to a Tenancy Tribunal. The PRTB can refer directly to a tribunal if it chooses.

If mediation takes place and is unsuccessful then it must be referred to a tribunal. A party to a determination can also appeal a decision of an adjudicator to a tenancy tribunal.

Time limits

Generally a tenancy dispute must be referred within 28 days of notice being given which gives rise to the dispute or for example the termination of the tenancy.

The PRTB can refuse to deal with a complaint if it is

1. frivolous/vexatious
2. statute barred in the context of court proceedings
3. concerns a dwelling to which the Residential Tenancies act does not apply.

The PRTB will not deal with a reference to it by an unregistered landlord. However if the landlord registers the tenancy within a reasonable time it may then deal with it (if it chooses)

A tenant can always refer a dispute as the obligation to register the tenancy is the landlord’s.

2 stage procedure

PRTB uses a 2 stage procedure to resolve disputes. The first stage is mediation or adjudication.
The second stage is a public hearing by a tenancy tribunal if not resolved at the first stage.

Mediation

A mediator prepares a report and the PRTB makes a determination order within 7 days which contains the terms of the agreement reached by the parties.
If there is no agreement then the tenancy dispute goes to a tenancy tribunal.

Adjudication

An adjudicator reaches a decision him/herself. The adjudicator prepares a report for PRTB and they then issue a determination order.
This order is binding unless appealed by one or both of the parties to a tenanct tribunal within 21 days. There is a form of cross examination in an adjudication but the adjudicator controls the process.

Tenancy tribunal

A tenancy tribunal deals with

1. disputes referred directly by the PRTB
2. disputes where mediation has not worked
3. where the tenancy dispute is the subject of an appeal from a determination of an adjudicator.

Each party is entitled to be heard,  be represented, give evidence and call witnesses at the hearing. Costs of witnesses or professional representation will not generally be awarded.

Determination Order

PRTB makes this order after receiving a report from

1. a mediator
2. an adjudicator
3. a tenancy tribunal

It is binding when issued. A determination order from a tenancy tribunal determination may be appealed to the High Court within 21 days on a point of law only.
Failure to comply is an offence and the PRTB can prosecute people for failing to comply with a determination order or it can apply to the Circuit court for an order forcing compliance.
If the PRTB prosecutes instead  for failur to comply with a determination order the penalties possible are up to 6 monhts in jail or a fine up to €3,000 or both.

The resolution of tenancy disputes is an important skill for anybody letting residential property.

Disclaimer