Residential Lettings – Changes in Regulation
RESIDENTIAL LETTINGS – CHANGES IN REGULATION
The Residential Tenancies (Amendment) Act 2015 (the “Act”) was signed into law on 4th December 2015 in response to increasing pressure on the Government to further regulate the rental housing sector.
There are a number of provisions contained within the Act which have not been commenced as yet (to include the introduction of a deposit protection scheme). However, there are three main areas where changes were introduced with immediate effect as follows:
TEMPORARY RESTRICTION ON THE FREQUENCY OF RENT REVIEWS
Section 25 of the Act restricts the entitlement of a landlord to conduct a rent review to once every two years.
It is important to note that this restriction is retrospective so that the restriction of rent reviews to once in every two year period also applies to existing tenancies and the restriction period is counted from the later of
(1) the commencement of the tenancy where there had been no rent review prior to the new Act coming into force; and
(2) the most recent rent review date.
The Act currently provides that this restriction will expire on 3rd December 2019 at which point a landlord may conduct a rent review once every 12 months as had been the position previously.
NOTICE REQUIRED BEFORE REVISED RENT TAKES EFFECT
Section 26 (1)(a)(i) of the Act provides that the tenant is entitled to 90 days’ notice prior to the new rent taking effect which is an increase from the previous notice period of 28 days.
CHANGES TO THE NOTICE PERIODS FOR THE TERMINATION OF TENANCIES
Section 31 of the Act makes certain changes to the notice periods which a landlord or a tenant are required to give to the other party in order to terminate the tenancy. Since the commencement of the Act, the notice periods now required are as follows:-
TERMINATION BY A LANDLORD
Duration of Tenancy Notice Period
Less than 6 months 28 days
6 or more months but less than 1 year 35 days
1 year or more but less than 2 years 42 days
2 years or more but less than 3 years 56 days
3 years or more but less than 4 years 84 days
4 years or more but less than 5 years 112 days
5 years or more but less than 6 years 140 days
6 years or more but less than 7 years 168 days
7 years or more but less than 8 years 196 days
8 or more years 224 days
From a landlord’s perspective, it is important to note that, in addition to adhering to the notice periods above, a valid termination also requires that:
(a) the termination notice contains the information as set out in the Residential Tenancies Act 2004 (as amended); and
(b) there must be a valid grounds for termination.
TERMINATION BY A TENANT
Duration of Tenancy Notice Period
Less than 6 months 28 days
6 or more months but less than 1 year 35 days
1 year or more but less than 2 years 42 days
2 years or more but less than 4 years 56 days
4 years or more but less than 8 years 84 days
8 or more years 112 days
It remains to be seen whether these changes will have the desired impact in addressing concerns in particular regarding the affordability of rented housing in Ireland.