Key Post Summarising the rules for new tenancies for small landlords after 1 March

[Brendan Burgess]

I am going to try to summarise the rules for the various options is a series of threads.
I am not a landlord so I have no practical experience of these rules. I am happy to be corrected on the existing rules or the proposed rules.

Caveat: The legislation has not been published yet, so this summary is based on the press statement and comments from government.
These are the rules for

• small landlords
• new tenancies after 1 March next

If I can get these right, I will move onto the far more complex existing tenancies. (Or if someone else wants to compile that, please do.) Please do not ask about existing tenancies in this thread.


A small landlord is someone with one, two or three properties.

• It is not clear whether a husband and wife own two properties each are small landlords or big landlords.
• If you own three properties in Ireland and one in the UK, are you a small landlord?
• If you own one property with 5 flats in it, are you a small landlord? The press release says "Tenants entering into a lease with larger landlords (with four or more tenancies)," which would suggest that the owner of a house in 5 flats is a large landlord.

New tenancies after 1 March

Existing rules	New rules
Some parts of the country are not in RPZs	The whole country will be an RPZ
You can terminate the lease if you want the property for a family member, who could be a niece or nephew.	You can terminate the lease if you want the property for a close family member, parent, child or spouse. (what about siblings?)
You can terminate a lease If you are returning from abroad and want it for yourself If you are separating and want it for yourself	This probably will not change - The lease can be terminated in cases of hardship which will be defined in the legislation.
You can terminate a lease if You want to sell You want to refurbish	Tenants will have a “6 year period” where you cannot terminate a lease for these reasons. At the end of the 6 years, you can terminate for these reasons If you don't terminate a lease after 6 years, a new 6 year period begins.
If you want to sell your property, you can terminate the lease	If you want to sell your property within the 6 year period, you can only do so with the tenant in-situ.
You cannot increase the rent on an existing lease beyond 2% a year	You cannot increase the rent beyond inflation "In times of high inflation rent increases will be capped at 2%"
You cannot increase the rent on an existing lease beyond 2% a year	At the end of 6 years, you can reset the rent to market rate, even if the tenant has not moved on. You cannot set rent above the market rate
If your tenant leaves, you cannot increase the rent for the new tenant beyond 2% a year	If your tenant leaves voluntarily, you can reset the rent to market rate. You cannot reset the rent beyond market rate. If you terminate the lease, you cannot increase the rent beyond inflation

What happens at the end of the 6 years?
You can reset the rent to market level.
You can terminate the lease if you wish to sell.
You can terminate the lease if you wish to refurbish.

If you don't terminate the lease, a new 6 year period starts based on the new rent or the existing rent if it is not increased.

 

[Brendan Burgess]

Minor issues.

What happens if a landlord dies?

 

[Greenbook]

I think on the family member point there has been a change, it is now only yourself, spouse, children or parents. Previously, it included nieces and nephews.

Also, what happens if the landlord's status changes ie. moves from large to small?

 

[TomEdison]

There's a hardship provision that isn't covered in Brendan's table. A landlord can terminate during the 6-year term on grounds to be specified in the legislation — the announcement offers examples like separation/homelessness/emigrant returning from abroad/bankruptcy. Presumably they will try to cover cases where the landlord has a pressing need either to move into the property himself or to sell it to meet his obligations.

 

[TomEdison]

Minor issues.

What happens if a landlord dies?

As far as I can see, nothing. From first principles, the estate simply steps into the landlord's shoes. In due course the property passes to the heir(s); they become the landlord, and take the property subject to the same restrictions as applied to the deceased landlord. The tenant isn't affected.

 

[Brendan Burgess]

There's a hardship provision that isn't covered in Brendan's table.

I want to have a clear table and not cover every contingency. Does the following change cover it?

You can terminate a lease If you are returning from abroad and want it for yourself If you are separating and want it for yourself

This will not change

 

[TomEdison]

Does the following change cover it?

Might be better to flag that the position here is a bit fuzzy? Future status shouldn't say "this will not change", because we don't know exactly what the law will say. Maybe better to indicate that can terminate "in certain cases of personal hardship that will be specified in the legislation", or something like that.