How to inform tenants that lease is not getting extended?

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Dubliner12345

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Hi, I am struggling to find any straight forward answer on RTB.ie on how to inform tenants that their lease is not getting extended?

Tenants finishing their second year in the property.
A HAP tenancy, tenants failed to pay tenants rent on a regular basis and every time I had to send Warning letters per RTB guidelines.
I do not have any bandwidth to run behind them looking for tenants rental contribution every month.

Therefore, decided not to extend the lease.

Can someone guide in plain English the procedure to inform tenants please?

Thanks
Dubliner
 
Bad news is you can't just decide not to extend the lease. The Residential Tenancies Act has converted their lease to a Part 4 tenancy, aka a tenancy of indefinite duration. You are only allowed terminate it on certain specific grounds, all of which are set out in Section 34 of the Act.

Good news is that non-payment of rent (aka breach of tenants obligation) is one of the specified grounds. If the tenants are already in arrears, or go into arrears, you can send a warning letter giving them 28 days to rectify the breach, ie pay the arrears. If they don't, you can then serve a Notice of Termination, requiring them to vacate the property in a further 28 days.

You will need to get every little detail of the Notice of Termination procedure absolutely correct. If you don't, the tenants can challenge it at the RTB and you will have to start all over again. Templates and further info are available on the RTB website.
 
Right Winger said:
Bad news is you can't just decide not to extend the lease. The Residential Tenancies Act has converted their lease to a Part 4 tenancy, aka a tenancy of indefinite duration. You are only allowed terminate it on certain specific grounds, all of which are set out in Section 34 of the Act.

Good news is that non-payment of rent (aka breach of tenants obligation) is one of the specified grounds. If the tenants are already in arrears, or go into arrears, you can send a warning letter giving them 28 days to rectify the breach, ie pay the arrears. If they don't, you can then serve a Notice of Termination, requiring them to vacate the property in a further 28 days.

You will need to get every little detail of the Notice of Termination procedure absolutely correct. If you don't, the tenants can challenge it at the RTB and you will have to start all over again. Templates and further info are available on the RTB website.
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Thanks, that is helpful.

I am wondering tenant making payments after breaching their tenancy obligation still holds true and considered a breach?

They pay when its a couple of days from 'the 28 days', therefore avoiding the notice of termination every month.

Is going through a solicitor any good?

Thanks in advance again.
 
Dubliner12345 said:
I am wondering tenant making payments after breaching their tenancy obligation still holds true and considered a breach?

They pay when its a couple of days from 'the 28 days', therefore avoiding the notice of termination every month.
Click to expand...
Annoying though it may be to get rent late, as long as they are not in extended arrears, I dont believe you'll succeed in getting an eviction order.
Dubliner12345 said:
Is going through a solicitor any good?
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Probably not.
 
Based on your timings it seems you are probably still on a 6 year part 4 tenancy.
Have a look here:

Tenancies of Unlimited Duration | Residential Tenancies Board

RTB operates Ireland's National Tenancy Register and resolving disputes between Landlords, tenants and third parties. Governed by residential Tenancies Act 2004. View more information on landlords and tenancies.
www.rtb.ie www.rtb.ie

"Tenancies already in existence before 11 June 2022, will continue under the existing security of tenure rules until the end of the current six-year cycle of the tenancy"

So you could end the lease for no reason at the end of your current 6 year cycle, which based on your info is in 4 years or so.

Probably not great news but at least an exit even if it's in the distance.

You could serve them with that notice now dated some date after the 6 year cycle is up, that should be a legal notice.
In the meantime, informally or via another party let it be known that you might reconsider if the rent is paid in full and on time in the interim.

If they stop paying altogether, going through the process with RTB and possibly court etc. anecdotally seems to take around 2 years.
 
Dubliner12345 said:
Thanks, that is helpful.

I am wondering tenant making payments after breaching their tenancy obligation still holds true and considered a breach?

They pay when its a couple of days from 'the 28 days', therefore avoiding the notice of termination every month.

Is going through a solicitor any good?

Thanks in advance again.
Click to expand...
You will not win if you give notice to leave for late payment unless they go over the 28days. If they pay after the 28days then you can give notice.
They are always late from what you say and RTB would say that was accepted by you at the start of the tenancy so the tenants will win. They will say you should have given them notice within the first 6months.

You have to bear with it until the 6year cycle is near the end and give notice that you will not renewing under a further part 4 when indefinate tenancies comes into play for you. You have to give that notice in writing on the last day of the tenancy and then they have the time after that date set out in the laws to stay. At the moment up to 1 to 7years it is 180days. A copy plus the RTB cover letter must be sent to RTB on the same day.
There are other reasons to give notice but this does not apply here such as moving family in or you using it yourself, refurb or selling.
You can give citizens information a call and see if they can advice.

Now landlords can only end a lease with no reason in the first 6months. Even then 90days notice is required unless under anti social behaviour.
 
Dubliner12345 said:
Thanks, that is helpful.

I am wondering tenant making payments after breaching their tenancy obligation still holds true and considered a breach?

They pay when its a couple of days from 'the 28 days', therefore avoiding the notice of termination every month.

Is going through a solicitor any good?

Thanks in advance again.
Click to expand...
Being late with the rent is a breach of the tenants' obligations. However, if they rectify that breach withing the 28 day warning period, you don't have the remedy of serving a warning notice.

However, you do have the option of bringing a case to the RTB looking for damages for the breach of obligations. (Basically, your costs in terms of correspondence, phone calls, inconvenience, etc.) You will get little if any monetary damages, of course, but you may well get a Determination Order instructing them to pay on time and / or set up a standing order. This is tilling the ground for a future action. Adhering to the terms of the Determination Order now becomes an additional obligation of the tenancy. Should they breach it, you can serve a termination notice for that breach. Not guaranteed to work but you're improving your position and showing them their conduct is not risk free.

Finally, document everything. Every phone call, email, letter, visit etc that you make. That will be important if you're trying to uphold a notice of termination for breach of a previous determination order.
 
Just on my point, OP can serve a notice now to end the lease in 4 years. The tenants may believe they are on an indefinite lease and can do what they like, including being late with payments every month. If you serve them a valid termination notice it becomes clear that they are going to lose something through their behaviour, even if it's in 4 years time and that might encourage them to pay on time, if you tell them it isn't written in stone and you might reverse the notice/let them stay if they pay on time.

The other advantage of legally serving now is to avoid the case where they change legislation in the future and you lose the power to terminate the lease. I'm not a lawyer but would guess the legally served notice couldn't be invalidated retrospectively.

The issue with any termination threat is that in 4 years the lease rolls over to an indefinite one and OP loses the leverage. OP could also inform them that if they don't pay on time they will sell the place or move back in. The issue there is that they may bring in selling with tenants in situe and you lose that leverage and are stuck with them forever. This type of situation, combined with rent controls, is why a lot of people are selling up.
 
Dubliner12345 said:
They pay when its a couple of days from 'the 28 days', therefore avoiding the notice of termination every month.
Click to expand...
It sounds like your tenants know how to play the system.

If your tenants remedy the breach (i.e. the non payment of rent) within 28 days of receipt of the warning notice, then that's the end of the matter - you don't have grounds to issue a notice of termination.

There's not much you can do about it for the time being - you will just have to grin and bear it.
 
The other option which you may not like is to sell the property then you can evict them ? You might sell to the Council as they are already paying HAP. I'm a landlord by default and if I could choose not to be I would do so.
 
ClubMan said:
Your post is confusing.

Are you making a statement or asking a question here?

What's "a landlord by default"?
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1. You can sell the house if you wish - its an option. (I'm presenting an option)
2. I did not choose to be a landlord I am an accidental landlord. The OP may not have chosen to be a landlord either. (I'm making a statement)
 
Are they due a rent increase? Give them notice of the rent increase now if you have not already done so as this will devalue your property if the rent is kept low. This might bring them over their rental band they are in. They will need HAP to approve the increase but that is their concern not yours.
You may be asked to sign another contract but refuse as there is one there already. If the increase is not paid then give them the usual notice of late payment. If they do not pay the increase then give them notice of non payment.
 
Sconeandjam said:
Are they due a rent increase? Give them notice of the rent increase now if you have not already done so as this will devalue your property if the rent is kept low. This might bring them over their rental band they are in. They will need HAP to approve the increase but that is their concern not yours.
You may be asked to sign another contract but refuse as there is one there already. If the increase is not paid then give them the usual notice of late payment. If they do not pay the increase then give them notice of non payment.
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Thank you, yes they are due a rent increase.
Is there a template to inform tenants of the rent increase? Would you know by any chance please?
 
Ok, I think I found the rent renewal notice on RTB website.

It seems like there are conditions to rent increment too

"Any dispute in relation to the new rent must be referred to the Residential Tenancies Board (RTB) under Part 6 of the Residential Tenancies Act 2004 before:
(a) the date the new rent becomes payable (this must be at least 90 days after the date of service of this notice); or
(b) the expiry of 28 days from the date that the tenant receives this notice, whichever is the later date."
 
Dubliner12345 said:
Hi, I am struggling to find any straight forward answer on RTB.ie on how to inform tenants that their lease is not getting extended?

Tenants finishing their second year in the property.
A HAP tenancy, tenants failed to pay tenants rent on a regular basis and every time I had to send Warning letters per RTB guidelines.
I do not have any bandwidth to run behind them looking for tenants rental contribution every month.

Therefore, decided not to extend the lease.

Can someone guide in plain English the procedure to inform tenants please?

Thanks
Dubliner
Click to expand...
You can't as they automatically got a 6.5 year lease after the first 6 months. If they have arrears you can evict on that basis, or if you decide to sell the property or move in yourself.
 
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