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Landlord not being Helpful

  • 24-09-2009 8:08am
    #1
    WIZE
    Closed Accounts Posts: 3,597 ✭✭✭


    My sister is leasing a premises for €1000.
    She had signed a 4 year contract and has served 2 of them without problems.
    Due to the recession and less Clients ( Medical Profession ) she has asked for the Landlord to to lower the rent to €800 so her Business can survive.
    The Landlord has said that there is no recession and he will not jump on the bandwagon and lower the rent
    She has told him that she can not afford the rent anymore and would like to find more affordable premises ( 200 meters down the road the rent for the same premises is for €650 )But the landlord has said if she breaks the contract he will bring her to court to get the next 2 years rent.

    Could you please tell me if there is and way to get out of the contract legally or if there is Government protection for tennants in leases . My sister is not doing this for greed to make more profit as her husband has a good job . Its more about the clients who live in the area depend on her .

    Thanks


Comments

  • #2
    dats_right
    Registered Users, Registered Users 2 Posts: 1,169 ✭✭✭dats_right


    It depends entirely on the provisions contained in the lease/letting agreement. That said, I would say that it is unusual to have a break clause in a short-term letting agreement (i.e. standard 4 years 9 months term) but I suppose it could be possible. If there is no break clause well then the the landlord is entitled to sue for unpaid rents.


  • #3
    WIZE
    Closed Accounts Posts: 3,597 ✭✭✭WIZE


    Thanks. All she wants to do is to get the rent lowered by €200 a month but the landlord will not play ball. The thing is if she does not make savings now so wont be able to pay any rent at all .
    I just want to find out if there is any websites and anyone who has been in the same sitution or an expert in this matter


  • #4
    eden_my_ass
    Registered Users, Registered Users 2 Posts: 594 ✭✭✭eden_my_ass


    BVB wrote: »
    Thanks. All she wants to do is to get the rent lowered by €200 a month but the landlord will not play ball. The thing is if she does not make savings now so wont be able to pay any rent at all .
    I just want to find out if there is any websites and anyone who has been in the same sitution or an expert in this matter

    My opinion would be that providing there is no break clause, this isn't a legal issue at all and theres no compelling reason the landlord should "play ball". Your sister was taking a chance with that length of lease, if rent in the area had risen hugely wouldn't she be glad of the protection her lease affords her. Theres really nothing to complain about, if the landlord feels its worth the risk that her business may fail and he may have to chase up rent due thats his call. Hes probably guessing this is her first avenue of cost saving, but that she can find others if he stands his ground. Helpful? No. Legal? Sure!


  • #5
    dats_right
    Registered Users, Registered Users 2 Posts: 1,169 ✭✭✭dats_right


    BVB wrote: »
    I just want to find out if there is any websites and anyone who has been in the same sitution or an expert in this matter

    Websites will not be of any help. Really the only 'expert' who your sister should be approaching is her solicitor, it is possible that she had one when negotiating the lease/letting agreement in the first place, they will know the answer straight away. Alterntaively any solicitor will be able to advise her options.


  • #6
    dermot_sheehan
    Closed Accounts Posts: 2,062 ✭✭✭dermot_sheehan


    If the lease doesn't provide for a downward rent review, you're stuck.

    The new provision in section 131 of the Land Law and Conveyancing Reform Act 2009, which provides that if there is a rent review clause in a lease it is to be construed as allowing for a downward revision in rent as well as an upward one does not apply to leases or agreements for a lease entered into before the commencement date for that piece of legislation.

    The Master of the High Court has indicated earlier this year, before this legislation came into force that courts may as a matter of policy not enforce upwards only reviews, but his comments on it are just speculation and do not carry the force of law.

    http://archives.tcm.ie/businesspost/2009/02/01/story39116.asp

    http://www.courts.ie/offices.nsf/(WebFiles)/F70B3DFD50ABF5FC8025754E00599535/$FILE/_hbcp30c1pbkg4qkh064g2q82bd5i6spbp40j20gbedtp20th08dk62sjcehnms816410msrri40p30c1o40r3adp0ad82sp3fcc_

    It's unlikely in any case that a lease of only four years would have a rent review clause in any case,


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