The Low Down on Tenancy Contracts in Ireland
Tenancy contracts, or more commonly known as a lease, provide the bits of information that those renting the property may need to effectively know about the terms of their lease. The tenancy contract begins with the landlord and ends with the tenant, making sure that all involved have the information needed to follow the terms of the lease. The tenancy contract or agreement can help to prevent any opportunities for disagreements through the expectations being spelled out clearly and simply. If any issues arise later on the line during the tenancy, the contract can be referenced to see where the law applies. In fact, most tenancy contracts are made by the property owner and then provided to the tenant to review. Tenancy contracts are generally created by the landlord at the beginning of the lease term and can be handwritten or typed on one page or several pages. Even with the minimum requirements as set out, not all tenancy contracts are exactly the same. The information can differ in how it is aligned, set out and divided. It can be organized differently and the information outlined in a different order, but the information should always be in the same order for the tenant, so that information can be found easily. While landlords might choose to use tenancy contracts for residential properties because they would rather rely on the contract than the verbal promise made , having a tenancy contract is mandated by law. While it is not necessary to have a tenancy contract to have a tenancy, it is required to have a written tenancy contract if anyone pays rent that exceeds the set threshold (currently set at an annual rent not exceeding €35,000). If you are renting a room in your house, you must still give your tenant a written statement of the terms of the tenancy if they pay €14,000 annually or more. The tenancy contract with the room must be signed and dated by you and provided to your tenant within 28 days after being signed. While contract terms and additional features can be included in the document, all tenancy contracts must include certain details to be considered legal and for it to be enforceable. The minimum requirements of the document, as set out in the Residential Tenancies Act, 2004 as well as the Housing (Tenancy Rent Books) Regulations, 2019, that need to be included are as follows: These tenancies contracts help to provide landlords and tenants with the protection they need to carry out their business with mutual understanding. If however, you do have specific concerns, be sure to discuss them with a lawyer before signing any contract.
Core Components of a Tenancy Contract in Ireland
The key elements included in a tenancy contract template include:
Details of the tenant: This section should include the tenant’s full name, contact address and work address if applicable.
Details of the landlord: This section should include the landlord’s full name and contact address. It is a good idea to include an email address for ease of contact too.
Details of the property: This section should give a full description of the rental property, including the address and any particulars such as whether it is furnished or unfurnished. It should also specify whether it is a house, apartment, flat or other type of dwelling.
Tenancy term: A clear statement as to when the tenancy begins and ends, such as a specified day, should be included in this section.
Rent: Details regarding the amount of rent, how often it is payable, and details of how it is to be paid should be included here.
Deposits/fees: Any deposits, fees or other charges such as utilities bills must also be specified in this section.
Termination: The grounds for early termination should be included here, along with specific procedures for landlords, such as the serving of a notice to quit, and when a tenant could end the contract early.
Delays: This section should outline the procedure should a tenant be delayed in moving into the rental property and how the landlord should handle such a matter.
Contact details: This section should contain all relevant contact details for the landlord or their solicitor, or their managing agent if they have hired one, in case of a dispute or issue arising.
Governing law: This will usually be set out as the law of the Republic of Ireland.
Irish Law and Tenancy Agreements
The legal requirements for tenancy agreements in Ireland
Specifically, landlords are required to prepare a written tenancy agreement where the term of the tenancy is longer than six months and give a copy or a copy of key terms to tenants. A tenant may also request a copy of the tenancy agreement and the landlord must comply with that request. Landlords who wish to enter into a tenancy agreement that exceeds six months should ensure that they have a written agreement in place setting out the terms of the tenancy. An agreement should always be reviewed to ensure that it complies with the minimum legal requirements and meets the practical needs of the landlord. It is not unusual to find an agreement prepared by non-lawyers which does not, for example, refer to the requirements of the Residential Tenancies Act 2004 to 2019 or take account of legal developments such as the ban on rent increases in the first six months of a tenancy. Where a tenancy agreement is silent on matters which are governed by the law, the statutory position will apply. For example, the statutory term for rent review is five years, unless an agreed rent review clause provides otherwise, although the Landlord and Tenant (Amendment) Act 1980 allows a landlord to apply to the court for an increase of rent on an earlier date than five years, where breakdown of a relationship between the landlord and tenant leaves no prospect of a long-term tenant/landlord relationship. Parties may also provide for rent reviews more frequently than five years but subject to a maximum of once per year. The statutory position is that the security of tenure entitlement of the tenant will not be less than 180 days’ notice of termination where the period of the tenancy is not in excess of six months, increased to 180 days where the period of the tenancy exceeds six months but is less than one year and so on. The landlord is not obliged to renew the tenancy at the expiration of the contractual term of the contract, although the Real Estate Alliance Code of Conduct suggests that landlords should do so as a matter of best practice. The Residential Tenancies (Rent Arrears Arrears) (Small Claims Procedure) Regulations 2023 was made on 24 June 2023 and comes into operation on 25 June 2023 and provides for the Small Claims Procedure to deal with claims for possession proceedings based on rent arrears where the arrears do not exceed €5,000.
Utilising a Tenancy Contract Template
When using a tenancy contract template, you’ll obviously need to add your specifics. Include the full names of both parties to the agreement and be sure to clarify whether they are the property owner or tenant as appropriate. It’s important that you understand the purpose of each section of the agreement so you can ensure that you address each area properly. If any details are left vague or open-ended, certain terms may not be enforceable under Irish Tenancy law. Be as clear as possible and provide the maximum amount of detail, but without using unnecessarily complex language or terms. Most templates include an area devoted to the payment of rent, including the amount due and the date it must be paid. If the rent is marked as being in full (that is, you’re only accepting the one payment each month), then it should be indicated that charges for utilities on top of that amount. If this is not explicitly stated, you should be prepared for tenants to argue about any extra payments expected. In terms of customizing the contract template, some individuals make the mistake of removing entire sections completely assumes that since they have no intention of charging certain fees, there’s no reason to include them (such as maintenance fees or landlord fees). However, the reality is that removing section within the document only builds up a written argument for tenants to make in court for why fees are not binding. Some individuals have also fallen victim to the alternate belief that a tenant’s verbal promise to pay for something is enough, which then falls victim to the argument the same tenants will make in court for why certain fees are unenforceable.
The Best Places to Source a Tenancy Contract Template
Where to Find Reliable Tenancy Contract Templates in Ireland
To guarantee compliance, it is advisable to acquire tenancy contract templates from credible sources. There are several online platforms that provide free tenancy contract templates that are legally compliant, as well as those you can purchase for a standard price. Search engines such as Google and Bing provide a plethora of free e-templates. However, it is important to ensure that what you find online is suitable for Irish law. Not all tenancy contract templates available online will be legally compliant in Ireland. Furthermore, the costs of some of the templates may vary based on variable factors. Some online platforms provide templates that address specific tenancy circumstances. For example, tenancy contract templates for short-term letting, long-term letting and prospective residents can be found online. Additionally, templates offering amendments to cover special circumstances of the tenant can be acquired at a fee . Selecting between free and paid tenancy contract templates mainly comes down to personal preference. What is more important than the costs of a tenancy contract template is its compliance with tenancy laws in Ireland. A recent system introduced in Ireland requires landlords to register all their rental properties via the RTB (Residential Tenancies Board). Only landlords who register their rental properties will benefit from the statutory rights. Only landlords providing RTB-compliant tenancy contracts will enjoy these rights too. To ensure that your landlord rights come into effect under the ambit of the RTB, you need to acquire a tenancy contract template that is RTB-compliant. Legally compliant templates can be acquired from the RTB website in a matter of minutes. You can also fetch a tenancy contract template from legal services in Ireland. Legal services such as local solicitors or some legal firms provide tenancy contract templates in book form for a fee.
Common Errors when Drafting a Tenancy Contract
Common mistakes made when creating tenancy contract templates in Ireland
Creating tenancy contract templates in Ireland is a tricky business because there are many pitfalls that can cause headache for both landlords and tenants.
For landlords, it’s essential to ensure that the tenancy contract template complies with the Residential Tenancies Act 2004 – 2016 or risk a penalty.
For tenants, creating a tenancy contract template that is not legally binding may leave them vulnerable to unscrupulous landlords.
Common mistakes made by landlords and tenants alike include:
Failure to comply with residential tenancies act (2004 – 2016) – As already pointed out above, if your tenancy contract template does not comply with the Residential Tenancies Act, you may find yourself with a substantial financial penalty on your hands. To this end, it is essential that you get your tenancy contract templates reviewed by a solicitor.
Accepting a landlord’s sweeping provision that any legislation/regulation will not apply. Such provisions will always be unenforceable. For example, a landlord may seek to insert a clause in a tenancy contract template that states, nothing that arises from the provisions of the legislation will apply to the landlord and tenant. Such a clause would be unenforceable.
Landlord agreeing to pay the rent and/or bills for the tenant. Landlords should not make such agreements as they may become a hostage to fortune if the rent increases or the bill becomes more expensive. A landlord should not ‘pay rent’ on behalf of the tenant.
Failure to state the rent reserved or the dates on which the rent is to be paid. These things must be stated in the agreement.
Distinction between commencement date and the date the rent is payable. It is important to realise that the two can be different. More often than not, the rent day will be the same as the commencement date of the lease. So, if the lease commences on Monday the rent day may also be Monday. However, occasionally a landlord may wish to agree a rent day with the coming into effect of the tenancy contract. For example, if the landlord wishes the rent day to fall on a Friday and the tenancy contract commences on a Tuesday, there may be two or three days in which no rent is payable. Where this situation arises it is a good idea to agree between the parties that rent is due for two or three days as soon as the lease commences and then for one week thereafter.
Failure to fix a date for payment. It is a good idea to state in the tenancy contract template that the tenant must pay within seven days of the date the rent is due. Otherwise, the landlord will have to give the tenant a notice in writing within 14 days of the rent becoming due. In addition, that notice must say that the non-payment of the rent is a breach of the tenancy. Thereafter, the tenant has five days to pay the rent before the tenant is considered to be in breach of the lease.
Failing to obtain the tenant’s signature to the tenancy contract template. While it is often assumed that if the tenancy contract template is created, the presumption is the tenant has signed it. That is not the case. In a dispute, the burden to prove that the tenant has signed the tenancy contract template will fall upon the landlord.
Finally, the tenancy contract template should be carefully vetted by a solicitor to ensure that it complies with the law of Ireland and is enforceable.
Tenancy Contracts and the Role of a Solicitor
Having a solicitor draft your tenancy contract or review the one that you have drafted, can ensure it meets all legal standards in Ireland. We advise strongly against downloading a generic, template tenancy contract and using that as your own. That is because there is plenty of scope for an error as a result of human oversight.
If you’ve got a small error in your contract, or you’re unsure what goes where, it can make it very difficult for the people involved to get recourse if something goes wrong. You could then potentially lose out on money you otherwise would be entitled to , if the contract you have is not legally binding.
A specialist solicitor with experience in handling tenancy contracts should be able to handle all of your concerns with the process. They may offer a free initial consultation in order to clarify and determine the scope of the work that needs doing.
Tenancy solicitors in Ireland are experienced in making sure that everything is legal before presenting you with the appropriate contracts. If you require a contract to be amended or adjusted in some way, your solicitor will be able to help you with that too.
They can also help with landlord and tenant disputes and processes, like mediation, twice before attending court. They can also help with defending claims made against you as a landlord.