Can I sell rental property if tenant extends lease?

L

lemrac

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I have been told that once a tenant has been in a property for one year, the tenant has a right to extend the lease for a further four years. What concerns me is that supposing I need to sell the property will I have to wait four years [ with the possability of the value dropping] until I can put the property on the market?

Thanks

L
 
Last edited:
lemrac said:
I have been told that once a tenant has been in a property for one year, the tenant has a right to extend the lease for a further four years. What concerns me is that supposing I need to sell the property will I have to wait four years [ with the possability of the value dropping] until I can put the property on the market?

Thanks

L
Click to expand...

You can break this extended lease if you are selling. It's one of the ways of breaking a lease. There are a few more.

If you go to www.prtb.ie you can get a copy of the tenancy act.
 
You're in luck, because selling your property is one of the valid reasons for breaking a Part IV Tenancy Agreement. You need to obviously give valid notice to the tenant before they have to leave etc.

The oasis website gives some of the basics on valid reasons for breaking a lease.
 
lemrac said:
I have been told that once a tenant has been in a property for one year, the tenant has a right to extend the lease for a further four years. What concerns me is that supposing I need to sell the property will I have to wait four years [ with the possability of the value dropping] until I can put the property on the market?

Thanks

L
Click to expand...

I think you're getting mixed up between a part 4 tenancy and a lease. If you have signed a lease, this is a binding contract which you are not entitled to break unilateraly - ie you can't kick the tenant out to sell the house. howefver, at the end of the term of the lease be that 1, 3 or 5 years, you can sell the house if you want.

The tenant is not entitled automatically to a renewal of the lease at the end of the year. Whether you both want to sign a new lease at that stage is up to you both.

What you are referring to is the new rule which state that if a tenant has been living in rented accomodation for greater than six months he or she is entitled to remain in there for 4 years once the rent is paid. There are certain rules as to when the tenant can be evicted which include if the landlord wants to sell the house. The purpose of this is to give tenants some security of tenure while protecting the landlord's right to use a property as he sees fit. It prevents the landlord from kicking someone out just because they want to jack up the rent an unreasonable amount
 
gearoidmm said:
I think you're getting mixed up between a part 4 tenancy and a lease. If you have signed a lease, this is a binding contract which you are not entitled to break unilateraly - ie you can't kick the tenant out to sell the house. howefver, at the end of the term of the lease be that 1, 3 or 5 years, you can sell the house if you want.

The tenant is not entitled automatically to a renewal of the lease at the end of the year. Whether you both want to sign a new lease at that stage is up to you both.

What you are referring to is the new rule which state that if a tenant has been living in rented accomodation for greater than six months he or she is entitled to remain in there for 4 years once the rent is paid. There are certain rules as to when the tenant can be evicted which include if the landlord wants to sell the house. The purpose of this is to give tenants some security of tenure while protecting the landlord's right to use a property as he sees fit. It prevents the landlord from kicking someone out just because they want to jack up the rent an unreasonable amount
Click to expand...

I had understood that even if you have say a one your lease with a tenant, when the original lease period expires the tenant has the right to stay in the property for the 4 years. ie the PRTB rules have precedence over whatever you may have written into the contract/lease.

Is my understanding not correct?
 
You are right, the tenant is entitled to stay for 4 years but it doesn't have the same legal protection as a lease. There are certain circumstances - selling the property/want to move in yourself or a relative/want to make major renovations in which you can ask the tenant to leave but only after a long waiting period which can be more than 2 months depending on how long they have been in the house.

That said, if you don't intend selling it and the tenant pays the rent regularly with no hassles, why would you want to evict the tenant?
 
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