Verbally agreed change in contract with tenant. How to formalise it?

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FilthyRich

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I'm the landlord. Everything done above board (i.e lease signed, PRTB registered.)

March 09: New tenant signed 12 month lease

Mid-July 09: Tenant requested reduction in rent. I offered €100 reduction which would bring rent down to current market rate

Mid-July 09: Tenant gave one-month's notice as she decided to move to a bigger house with another individual. Pain in the neck for me to lose a tenant but she's entitled to do so as per terms of her lease.
I advertised apartment on Daft

End July 09: No replies to ad on Daft even though rent is current market rate. I really can't afford to have apartment lying vacant. I offered tenant a rate which is a further €100 lower than current market rate just to have her stay on until I get new tenants. She wanted to know if this could be a permanent arrangement but I said no, that I'd be looking for new tenants to pay the current market rate. She has agreed to do this. Of course she would - she's getting a bargain!

My question is, how do I formalise this? She currently has a 12 month contract (12 months - what a joke when she's entitled to break it giving me one month's notice.) She has verbally agreed to have the apartment available for viewing and has asked me to give her a few days' notice when asking her to leave. I think, to be fair to her, that the minimum notice I should give her is 2 weeks.

Do I need to draw up a new contract or should we just sign an addendum to our current contract, stating our new arrangement?

According to our current contract, after 6 months, she is entitled to remain there for 4 years. However, our latest arrangement is that she's only there on a temporary basis until I can find someone who is willing to pay the market rate. So I don't want her telling me in 2 months that she's entitled to stay on at this bargain basement rate for another 3.5 years!

I should add that she is a good tenant and I don't expect any difficulty. It's just that I want everything above board.
 
Sorry but you need a reality check on the current market rents. Rents are dropping by the day every day and it is a tenant's market. Personally if she is as good as you state the slightly lower rent might be cheap for you in the long run.
 
I should have added that she bargained me down a further €50. She knows a bargain when she sees one!

Mercman, I'm very aware that rents have dropped considerably. But really, they haven't dropped as low as this - yet!

Granted, she wasn't my tenant this time last year but I've just agreed to a full 30% decrease on what I was getting this time last year. Last I heard was that rents had dropped up to 20%.

I'm just trying to avoid the situation where I have nothing coming in. I can't sustain such a decrease in rental income. Oh how I wish I could sell it and be done with the whole property investment lark. I don't think it's for me.

But back to my question, do I need to draw up a new contract?
 
Why and how has she got a break clause in the lease ?? I'd give her a new lease with no break options at the negotiated rent. If she wants to leave early then fine, just keep her deposit as you are entitled to.

THe problems you are having in the property letting business are the same in every industry in Ireland at the moment. There is absolutely no easier way to make matters any better at the moment.
 
Is this the PRTB clause which says the tenant has the right to stay on in a property for 4 years, after they've been there 6 mths? This is subject to the lease agreement, I was informed by the PRTB.
If you have signed a 12 month lease with her, she is not entitled to break the lease. She is under contract to pay the rent agreed for the year.
Otherwise, the lease is worthless, & why would any landlord bother signing one
 
my landlord gave me 6% off when i asked for it.r/a was reduced by 6% so i asked my landlord to help me out by reducing also.didnt make up new contract we just wrote down on the lease MR.X agreed to reduce rent by X amount and we both signed it and put the date.dont deal.
 
Charley said:
Is this the PRTB clause which says the tenant has the right to stay on in a property for 4 years, after they've been there 6 mths? This is subject to the lease agreement, I was informed by the PRTB.
If you have signed a 12 month lease with her, she is not entitled to break the lease. She is under contract to pay the rent agreed for the year.
Otherwise, the lease is worthless, & why would any landlord bother signing one
Click to expand...

True but with it being a renter's market she can walk away with one months notice, that is the reality of it!!

OP you also need to inform the PTRB ( in writing) of the newly agreed rental figure.
 
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