Understanding Tenancy Agreements in Ireland
A tenancy agreement is a legally binding contract between a landlord and a tenant outlining the terms and conditions of the rental arrangement. This contract serves as a guide for both parties, clearly setting a guideline for each party’s obligations and duties. Verbal agreements or casual emails can be problematic, as they leave no clear evidence of what has been agreed. Please note that even an expired lease can still bring enforceable rights and obligations against the landlord.
Tenancy agreements typically cover a variety of important issues, such as the amount of rent, the length of the tenancy, and the responsibilities of the landlord and the tenant. The agreement may also include information on the obligations of the tenant, maintenance issues, and the process for renewing or terminating the contract.
The Residential Tenancies Act, 2015 (RTA 2015) now sets in place various measures to regulate the tenancy agreement process , such as new requirements for all written tenancy agreements to include key provisions. However, most lettings during the first six months of a tenancy must be registered with the Residential Tenancies Board (RTB).
Landlords must use an appropriate written tenancy agreement that follows the provisions of the RTA 2015, including use of the prescribed terms (see below). If a landlord fails to do so, the RTB may not recognise that tenancy for the first six months, meaning that the landlord will not be able to apply for the tenancy to be registered with the RTB.
Tenancy agreements must contain certain prescribed terms as per the RTA 2015, including grounds for termination, rent amount, tenancy duration, and duties and obligations of the parties. In addition, tenancy agreements must also be accompanied by the following documents if they have not already been supplied:
Key Elements of a Tenancy Agreement
Every tenancy agreement in Ireland should contain certain crucial elements. For the sake of clarity, all tenancy agreement templates we provide are written to encompass these components.
Tenant and landlord information: The tenant and landlord should be easily identifiable and all relevant personal contact details should be given. The names, addresses, and contact numbers of both parties should be listed, along with email addresses and other biometric information such as identification number, passport number, and a copy of the signatories’ identification documents. Where landlords are agencies this should be clearly set out.
Property: The full address of the property to be let should be made clear to tenant and landlord, along with clear information about the type of property being rented out. Why is this so important? Your tenant needs to know the exact location of the property so that they can travel to and from work, get groceries, and get a good night’s sleep without the loud noise of a nearby train station disrupting their sleep all night. It is also to protect the landlord from Tenants looking for a space to park their 18-wheeler truck in the driveway.
Rent Amount: Under the Residential Tenancies Act 2004, it is compulsory to inform the tenant of the rent amount to be paid, where to pay it, and how it can be paid. As such, the tenancy agreement template must specify the rent due to the landlord on a monthly basis, where this payment will be received i.e. via bank transfer, in-person cash drop-in, or cheque, as well as on what date and how long the payment applies for. Setting clear expectations when it comes to rent will help to establish a good relationship with your tenant from the outset.
Duration of the tenancy: The length of time that the tenancy agreement will last for is also a fundamental component that must be clued into the template. For short term residential tenancies, the tenancy period may not exceed six months. However, for any durations longer than this, the landlord-tenant relationship opens up. Section 34 of the RTA requires that every lease or tenancy agreement for longer than six months must include the length of time for which the agreement will be in force, along with starting and finishing dates. Where contracts extend up to six months, the tenant is covered by residential rents controls, securing their right to a rental agreement. Remember that there is no fixed length for a contract a landlord can sign with a tenant.
Advantages of Using a Template
The most obvious reason for using a tenancy agreement template is that it will save you a great deal of time. Indeed, the time you save by using a template could be the difference between having time to make any capital from a rental property and not. If you take the time to advertise the property, vet a potential tenant and then draft the tenancy agreement, you will have spent a great deal of time and incurred substantial costs only to have missed out on letting the property for that month. Conversely, if you are using a template, you have saved yourself some time which could be better used by advertising the property in more places or even allowing the property to be unlet for a little while longer so that you can find the right tenant.
By using a tenancy template, you are also ensuring that your tenancy agreement meets the minimum legal requirements by including all of the information required by law. This means that you will not be at risk of prosecution for not providing this information and will also find it much easier if you come to either make a claim from or take action against your tenant. The process of proving any claim against a tenant largely focuses on whether or not both parties were informed of the same information prior to entering into the agreement and therefore the more information you have a record of provided and received the better.
A tenancy agreement template also ensures that you are not missing anything of potential great importance that should be included in your tenancy agreement. If you were to attempt to draft a tenancy agreement without reference to a template, you might forget to include some point or all together omit what would be seen as standard information for that locality. This could lead to a loss of time and money due to having to redress issues that could have been avoided by simply using a comprehensive template.
How to Tailor your Agreement Template
One of the greatest advantages of having a tenancy agreement template prepared by a specialist is how amenable it is to customization. Once you have the framework in place, you can tailor the specifics to the needs of the landlord or tenant. It is nonetheless prudent to be conservative in the number of changes you make to a tenancy agreement template. Some liberties are more acceptable than others, and a good template will give you insight into which modifications are likely to be unproblematic under Irish law. The most important aspect of customizing your agreement template is retaining clauses that are designed to protect your core interests as a landlord or tenant. This minimises the potential for unwelcome surprises and gives you the best possible legal footing. To that end, be sure to keep provisions for payment timelines, notices, and exclusions (such as smoking, pets, and guests). As a landlord, you are free to specify rules about informal activities in the home, such as playing music after 10 p.m., use of common areas, and the disposition of garbage. These, among others, are little touches that help you clarify the kind of home life you are willing to allow in your rental unit. Tenants should make good use of these opportunities to shape their own experience. Although there is a fair amount of flexibility in customizing tenancy agreements, there are some areas where it is best to defer to the standard terms dictated by Irish law. For example, there are certain things landlords are required to do upon termination of a tenancy. It is in your best interest to follow these rules rather than attempt to negotiate a different arrangement. As a tenant, it is your prerogative to request changes in the area of maintenance and repairs. As a landlord, you may freely alter the terms of the tenancy when it comes to amenities such as storage space, parking, air conditioning, and internet access. There is also the option to include a sublease agreement in your tenancy agreement template. This will come in handy if you ever decide to leave your home before your lease is up but you wish to allow someone else to maintain the agreement during your absence.
Common Mistakes to Avoid
Both landlords and tenants should be aware of and steer clear of the following mistakes when entering into an Irish tenancy agreement:
1. Relying on English templates: While English law prevails in England and Wales, it does not in Ireland. The Residential Tenancies Act 2004 is intended to provide all tenants with minimum protections and is not drafted solely for landlords’ benefit. Therefore, English tenancy agreements (which are drafted in that country) should not be used as templates in Ireland.
2. Not disclosing information: Both landlords and letting agents are required to provide certain prescribed information to the tenant, including:
a. The name and address of the landlord.
b. The rent and all applies to the rent (such as when it is payable, inclusive of utility costs and in what currency).
c. Any standard terms agreed, including:
i. whether the property is furnished and a general list of furniture items included.
ii. amounts that are to be deducted from deposits for cleaning and damages, if not set out in the tenancy agreement.
iii. details of how the deposit is held (e.g. escrow or client account) and by whom.
iv. the method of rent payment.
v. notice periods required.
3. Disputes over inventory and deposit: In a study by a UK estate agency, 59% of landlords were accused of taking deposits for damages by tenants . Even if the tenancy agreement and inventory are well-drafted, and the landlord issues a written receipt for the deposit and fails to protect the deposit, the latter can cause disputes when a landlord seeks to retain some or all of the deposit to cover damage. On the other hand, if no inventory is recorded, the landlord cannot then charge for repairs that are a result of normal wear and tear when the tenant vacates the premises. To correct this, landlords should take a video of the property and record faults. Tenants should not sign agreements if incomplete, such as where only one party has signed.
4. Leaving out non-standard rules: Landlords should avoid common areas without basic rules. Landlords are required to provide tenants with a copy of the tenancy agreement within 28 days of the start date, however, this is subject to the following exemptions:
For example, in a shared house, landlords and tenants will likely wish to prevent uninvited guests and overnight guests. These rules should be added to the tenancy agreement.
5. Waiving rights for new properties: A landlord must inform a tenant if the rented property was built or developed within the previous seven years. This is because the tenant may have rights against the previous developer under the Mulryan case and on the minimum standard of repair to which a tenant is entitled. These rights cannot be waived by a landlord.
Where to Find Quality Templates
When searching for reliable tenancy agreement templates in Ireland, it is important to utilize sources that are verified and legal approved. There are several platforms that offer professional, standard tenancy agreements:
Residential Tenancies Board
In Ireland, the Residential Tenancies Board (RTB) plays a significant role as one of the most trusted sources for written tenancy agreements. The RTB has developed a number of templates for different tenancy situations and types. They are free to download from the RTB website, and include a variety of options.
Local Authorities
Local authorities throughout Ireland must adhere to the standards set out by the Residential Tenancies Act 2004 and have been doing so since 6 July 2007. This basically means that any tenancy that is entered into after that date is governed by these standards. Local authorities have developed standard tenancy agreements to comply with these standards. These tenancy agreements are available to browse on local authority websites or upon direct requests to local authorities. Local authority websites list standard tenancy agreements that are fully legally compliant and fit for purpose.
Professional services
Recruiting the service of professionals is the quickest way to secure a completely legal and up-to-date tenancy agreement. Solicitors can draft tenancy agreements that reflect the specific requirements of landlords. Estate agents are often happy to provide their tenants with a variety of models for tenancy agreements, although the cost of such an agreement must be borne in mind.
The composition of a tenancy agreement can vary and it is up to the parties to negotiate what will form part of their agreement. Software developers such as LGM Solutions provide professionally designed tenancy agreements on their platforms, which may be more cost-effective than solicitors. A large choice of clause is available for insertion into the tenancy agreement.
FAQs
Do I need to renew my tenancy agreement every year?
For tenancies that began after 6 July 2022, the agreement will automatically renew for a further term of six months. However, either party may end the tenancy at any time by giving not less than 90 days’ notice in writing to the other party. It will also be a substantial ground for terminating a tenancy where the landlord needs the property to provide accommodation for the landlord or a member of the landlord’s family (to include a child, parent, sibling, uncle, aunt, grandparent and so on).
Do you get your security deposit back even if the landlord is negative?
If the landlord disputes the return of the deposit at the end of the tenancy, he must initiate the dispute resolution process with the RTB and may not retain any part of the deposit while the dispute resolution process is pending. The landlord must inform the tenant of the grounds on which he is retaining the deposit. The tenant will have a period of 10 working days within which to agree the disputed amount with the landlord. Heading to the dispute resolution process with RTB is, of course, the tenant’s choice.
I am not getting on with my neighbours and would like to break my tenancy agreement. Is there anything I can do?
Unfortunately , disagreements with your neighbours are not grounds to seek an early end to your tenancy. Your tenancy has ended if the landlord serves you with a valid notice of termination or the term of the tenancy ends, or you give a valid notice of termination.
If you vacate the property and do not pay the rent, you could potentially incur a substantial amount of rent arrears in addition to normal liabilities for waste or other breaches of your lease. Additionally, the landlord could sue you in court to obtain a possession order and recover loss of rent arising from your early departure from the property.
I thought the landlord was selling but the property is still rented to someone else. Can I do anything about this?
The law has certain protections for those tenants who were registered with the RTB when the property was sold. The new owner/landlord of the property cannot seek to terminate the tenancy because he intends to sell the property for six months. This applies only to tenancies that started before 6 July 2022. If the tenancy commenced after that date, the six-month waiting period does not apply and the existing tenancy can be kept, expired and a new tenancy created.