The Act applies to dwellings which are the subject of a tenancy. Certain types of tenancies are excluded such as business lettings and holiday lettings. The Act applies to tenancies whether created before or after the Act was passed, fixed term lettings, written and oral tenancies, multiple room lettings and sub tenancies.

Landlord and Tenant Obligations

The Act imposes certain obligations on both landlord and tenant which cannot be contracted out of. The landlord is obliged to insure the property, carry out repairs as necessary and repay deposits. In return the tenant must pay rent, allow reasonable access, and refrain from engaging in anti social behaviour. A curious aspect of the Act is that it gives third parties the right to make a complaint to the PRTB where a landlord fails to enforce a tenant’s obligations.

Rent

Rent must not exceed the open market rent and may be reviewed only once a year. Rents may be reviewed upwards or downwards, which may be a concern to landlords, particularly where a property is Mortgaged. Disputes regarding rent may be referred to the PRTB.

Security of Tenure

Where a tenant has been in occupation of a dwelling for six months they shall be entitled to the balance of a four year term (a “Part 4 tenancy”). The landlord may only terminate a Part 4 tenancy on certain statutory grounds including:-  

(a) that the landlord intends to enter into a contract to sell the property within the next three months;

(b) that the landlord requires the property for his own/family member occupation;

(c) that the landlord intends to substantially refurbish the dwelling;

(d) failure by the tenant to comply with obligations of the tenancy.

The landlord should be aware however that giving false grounds for termination could leave him exposed to a potential claim for damages of up to €20,000.00 (as well as prosecution for a criminal offence).

Termination of Tenancies

Tenancies are to be terminated by means of service of a Notice of Termination. Notice periods vary from 28 days to 112 days depending on the length of the tenancy (see the table below setting out the minimum notice provisions) except where termination is for non compliance with tenancy obligations or as agreed between the parties at the time of termination (but not at the time of granting the Lease). Where termination is by the landlord, and the tenant has acquired a Part 4 tenancy, then the Notice must cite one of the reasons referred to above. Tenants do not need to give a reason for terminating.

Dispute Resolution

Disputes arising between landlord and tenant should be referred to the PRTB rather than the Courts. It remains to be seen whether the aim of the Act: to provide a speedy, low cost, uncomplicated means of dispute resolution, will be realised.

The dispute resolution process may be initiated by either party. The process consists of two stages:-

(i) Mediation or adjudication as agreed by the parties. These proceedings are held in private.

(ii) A public hearing before a three person Tenancy Tribunal. An appeal of a Tribunal decision may be taken to the High Court on a point of law only.

The PRTB may award damages up to €20,000.00 or rent arrears of twice the annual rent (to a maximum of €60,000.00).

Registration of Tenancies

Landlords are obliged to register details of all their tenancies with the PRTB but will no longer have to register with Local Authorities.

• New tenancies should be registered within one month of creation.
• Existing tenancies should be registered within three months of the Act coming into force (i.e. by 1st December 2004).
• The current registration fee is €70.00 per tenancy up to a maximum of €300.00 where there are a number of units in the one property being registered at the same time (fees will be linked to inflation).
• A double fee will apply for late registrations.
• Where there is a review of rent during the term of a tenancy, the register must be updated to reflect this.
• The Act provides that failure by a landlord to register a tenancy is an offence, the penalty for which may be a fine of up to €3,000.00, six months imprisonment, or both.
• Landlords must be registered to avail of the dispute resolution service.
• Tenants will have access to the service regardless of whether the tenancy is registered.
• The PTRB may exchange information from the register with Local Authorities, the Department of Social and Family Affairs and the Revenue Commissioners.

Time will tell what impact the Act will have on the relationship between landlords and tenants and the residential letting market. What is evident however is that landlords in particular need to take account of their obligations under the Act as well as the implications (both civil and criminal) for non compliance with those obligations, particularly when entering into new tenancy agreements, but also in relation to existing tenancies.

This article is intended as a general overview of the Act only and should not be considered as legal advice. Any person requiring specific advice in relation to any matters referred to herein or any related matter should contact a member of the Commercial Property or Private Client Departments of Ronan Daly Jermyn.

Brian O’Halloran

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