Rent increase

RollYerOwn

In a long-standing tenancy of several years with an active lease, can rent be suddenly increased by any amount with only a short period of notice?

Let's say the rent increase matches the new elevated market levels for the area, can the rent be increased by such an amount that the tenancy is in no way affordable by the current tenant? And if so is the tenant liable for the increased rent for the duration of the current lease?

ted1

RollYerOwn wrote: »

In a long-standing tenancy of several years with an active lease, can rent be suddenly increased by any amount with only a short period of notice?

Let's say the rent increase matches the new elevated market levels for the area, can the rent be increased by such an amount that the tenancy is in no way affordable by the current tenant? And if so is the tenant liable for the increased rent for the duration of the current lease?

Yes, the rent can be raised once every 12 months, to match the current market rate.

surpy

can they increase the rent?
if you have a fixed lease : no (until lease expires)
rolling / part 4 lease : yes (every 12 months)

can they increase a huge amount?
they can only increase to market rate

can they do it on short notice?
minimum 28 days notice, in writing

http://www.threshold.ie/advice/dealing-with-problems-during-your-tenancy/how-to-deal-with-rent-increases/

Daith

RollYerOwn wrote: »

In a long-standing tenancy of several years with an active lease, can rent be suddenly increased by any amount with only a short period of notice?

Let's say the rent increase matches the new elevated market levels for the area, can the rent be increased by such an amount that the tenancy is in no way affordable by the current tenant? And if so is the tenant liable for the increased rent for the duration of the current lease?

When was the last time the rent was reviewed?

MarkAnthony

Always wondered - and I hope you don't mind me asking here OP but your question has been fully answered - do they have to reduce it again if the market goes down? Does that only happen if they 'review the rent' which obviously they wouldn't do in a decreasing market or can the tenant request a rent review?

TIA

ted1

MarkAnthony wrote: »

Always wondered - and I hope you don't mind me asking here OP but your question has been fully answered - do they have to reduce it again if the market goes down? Does that only happen if they 'review the rent' which obviously they wouldn't do in a decreasing market or can the tenant request a rent review?

TIA

A tenant can ask for a reduction, but it doesn't mean it will be accepted.

pwurple

MarkAnthony wrote: »

Always wondered - and I hope you don't mind me asking here OP but your question has been fully answered - do they have to reduce it again if the market goes down? Does that only happen if they 'review the rent' which obviously they wouldn't do in a decreasing market or can the tenant request a rent review?

TIA

If you ask I'd say it happenes. I dropped the rent for my part 4 tenants when they requested as the market dropped. That's because I have excellent tenants, and I was willing to take a small hit to keep them.

MarkAnthony

ted1 wrote: »

A tenant can ask for a reduction, but it doesn't mean it will be accepted.

Can they force a review through the PRTB if the market has dropped?

Thanks again.

Sorry OP if you feel this is a derailment say so and I shall exit

The Spider

MarkAnthony wrote: »

Can they force a review through the PRTB if the market has dropped?

Thanks again.

Sorry OP if you feel this is a derailment say so and I shall exit

Nope, but they can move out and rent somewhere else at the cheaper rate, if it has dropped the landlord will only be able to rent it out at the market rate.

Happened lots in the bust, usually landlord dropped the rent to the market level, all we're seeing now is a readjustment to previous rent levels.

RollYerOwn

Definitely true for the downturn (or rather return to normality).


However in the upturn (or return to insanity) that is a starving Dublin rental market that has again overinflated the return on rental income for landlords..


Thanks for all the responses. One thing remains unanswered as far as I can see however - if the agreement can be rewritten by the landlord (alone) to a quarterly increasing new market level - is the tenant liable for the duration of their lease for this newly announced cost of rental?

Grandpa Hassan

RollYerOwn wrote: »

Definitely true for the downturn (or rather return to normality).


However in the upturn (or return to insanity) that is a starving Dublin rental market that has again overinflated the return on rental income for landlords..


Thanks for all the responses. One thing remains unanswered as far as I can see however - if the agreement can be rewritten by the landlord (alone) to a quarterly increasing new market level - is the tenant liable for the duration of their lease for this newly announced cost of rental?

The rent can only be increased once every 12 months (not quarterly), to the market level. But then, yes, that is the rent that you must pay for the duration of the lease (or as long as you are there under part IV), or the next rent review in minimum 12 months.

RollYerOwn

Grandpa Hassan wrote: »

The rent can only be increased once every 12 months (not quarterly), to the market level. But then, yes, that is the rent that you must pay for the duration of the lease (or as long as you are there under part IV), or the next rent review in minimum 12 months.

Sorry, yes you're correct, the reviews of the index are quarterly but the increase is permitted only annually.


Seems like a great way to guarantee that an under-par property can be guaranteed a maximum rental income on an annual basis. Just advertise it cheaply, get as long a lease as somebody will offer, then the next day announce that the rent will go up within 28 days and just raise the rent to full market value for a much better property in a better area of Dublin and force tenant to pay.


So is this a great little scam for unscrupulous landlords with no protection offered by an agreement in the form of a lease (except that the lease will eventually end)?


And for those that have no way of paying the kind of rent they now owe for the duration?...


Frighteningly real for someone I know.

surpy

RollYerOwn wrote: »

Sorry, yes you're correct, the reviews of the index are quarterly but the increase is permitted only annually.


Seems like a great way to guarantee that an under-par property can be guaranteed a maximum rental income on an annual basis. Just advertise it cheaply, get as long a lease as somebody will offer, then the next day announce that the rent will go up within 28 days and just raise the rent to full market value for a much better property in a better area of Dublin and force tenant to pay.


So is this a great little scam for unscrupulous landlords with no protection offered by an agreement in the form of a lease (except that the lease will eventually end)?


And for those that have no way of paying the kind of rent they now owe for the duration?...


Frighteningly real for someone I know.

are you saying that someone had their rent increased while a lease was in effect within 28 days of moving into a property?

RollYerOwn

surpy wrote: »

are you saying that someone had their rent increased while a lease was in effect within 28 days of moving into a property?

No, within several months of the lease ending in that case - frightening because the property isn't worth what's being sought and the person will have to take their child out of school to move to another county - yet still owe the rent (which she hasn't agreed to) being sought on the remainder of the duration of the lease (at least that's what I gather from the responses here).


My point relating to an increase within 28 days is that it seems to be all the notice that is required to raise the rent from an agreed amount (which may have been agreed in a lease signed on the day before - and what is to prevent landlords doing this?

runawaybishop

RollYerOwn wrote: »

No, within several months of the lease ending in that case - frightening because the property isn't worth what's being sought and the person will have to take their child out of school to move to another county - yet still owe the rent (which she hasn't agreed to) being sought on the remainder of the duration of the lease (at least that's what I gather from the responses here).


My point relating to an increase within 28 days is that it seems to be all the notice that is required to raise the rent from an agreed amount (which may have been agreed in a lease signed on the day before - and what is to prevent landlords doing this?

Once you've signed the lease that is the rental amount for the duration of that lease. You cant sign a lease and then be expected to pay an increased rent 28 days later.

Apart from that there is nothing to stop a landlord charging what the market will bear for the property as long as the review is no more than once per year. It is a business after all.

RollYerOwn

runawaybishop wrote: »

Once you've signed the lease that is the rental amount for the duration of that lease. You cant sign a lease and then be expected to pay an increased rent 28 days later.

Apart from that there is nothing to stop a landlord charging what the market will bear for the property as long as the review is no more than once per year. It is a business after all.

Ok, so there's something that prevents them raising the rent in the first year but not subsequent years, is that correct?

surpy

if the lease is over a rent increase can be applied. if you object, follow the guidelines in the threshold link i posted.

if you agree but cant afford, unfortunately, you will have to move out like so many other people have had to do in this situation (i dont agree like what is happening and wish there was an alternative)

if you give the landlord notice, i dont believe you are liable for any increase in rent, but definitely speak to thrreshold or other legal advice ASAP

runawaybishop

RollYerOwn wrote: »

Ok, so there's something that prevents them raising the rent in the first year but not subsequent years, is that correct?

The rent can only be reviewed once every 12 months, and the increase cannot exceed market rates.

ted1

RollYerOwn wrote: »

Sorry, yes you're correct, the reviews of the index are quarterly but the increase is permitted only annually.


Seems like a great way to guarantee that an under-par property can be guaranteed a maximum rental income on an annual basis. Just advertise it cheaply, get as long a lease as somebody will offer, then the next day announce that the rent will go up within 28 days and just raise the rent to full market value for a much better property in a better area of Dublin and force tenant to pay.


So is this a great little scam for unscrupulous landlords with no protection offered by an agreement in the form of a lease (except that the lease will eventually end)?


And for those that have no way of paying the kind of rent they now owe for the duration?...


Frighteningly real for someone I know.

Your completely wrong, the rent can ot be increased once every 12 months. So they can't increase it till you have lived there for 12 months

RollYerOwn

ted1 wrote: »

Your completely wrong, the rent can ot be increased once every 12 months. So they can't increase it till you have lived there for 12 months

If you move in under an agreement and the rent does not change during the duration of that lease - then it has not increased. Moving in is not itself an increase.


If you move in under an agreement and the rent DOES change to a higher rent during that time, then it has increased. Once.


My point is that I haven't seen any argument that this can't be done within the first year.

runawaybishop

RollYerOwn wrote: »

If you move in under an agreement and the rent does not change during the duration of that lease - then it has not increased. Moving in is not itself an increase.


If you move in under an agreement and the rent DOES change to a higher rent during that time, then it has increased. Once.


My point is that I haven't seen any argument that this can't be done within the first year.

You cant unilaterally change the terms of a lease. If you are on a lease with a fixed amount you cant change it for the duration of that lease, unless rent review is part of the terms of that lease. If you are on a fixed 1 year lease which is renewed and the rent amount is set in the lease then that is a rent review and would fire off the 12 month cooldown period.

surpy

They can't change the rent in the first year.
It can be set once per year - it is set at day 1 then can't be reset for 12 months. After 12 months it can be changed at any time (e.g. 18, 22 mths etc) but then it's set again for the next 12

RollYerOwn

runawaybishop wrote: »

The rent can only be reviewed once every 12 months, and the increase cannot exceed market rates.

Agreed, so could the rent be reviewed after one month of a one year lease? Would it not be correct to say that it has not been reviewed previously?

RollYerOwn

runawaybishop wrote: »

You cant unilaterally change the terms of a lease. If you are on a lease with a fixed amount you cant change it for the duration of that lease, unless rent review is part of the terms of that lease. If you are on a fixed 1 year lease which is renewed and the rent amount is set in the lease then that is a rent review and would fire off the 12 month cooldown period.

So the ability to review the rent during the duration of the lease has to be specified in the agreement? Wouldn't that be the case for most pro-forma leases?


I'll have to get my friend to check that in her lease in any case.. Thanks.. will look into.

surpy

http://www.irishstatutebook.ie/2004/en/act/pub/0027/print.html

20.—(1) Subject to subsection (3), a review of the rent under the tenancy of a dwelling may not occur—
(a) more frequently than once in each period of 12 months, nor
(b) in the period of 12 months beginning on the commencement of the tenancy.

RollYerOwn

surpy wrote: »

They can't change the rent in the first year.
It can be set once per year - it is set at day 1 then can't be reset for 12 months. After 12 months it can be changed at any time (e.g. 18, 22 mths etc) but then it's set again for the next 12

Ok, so it can only be set once every 12 months. That makes a difference in the terminology used. Have you a reference for that as I found the legislation impenetrable.

runawaybishop

RollYerOwn wrote: »

Agreed, so could the rent be reviewed after one month of a one year lease? Would it not be correct to say that it has not been reviewed previously?

No, you cannot review it after one month as the initial signing of the lease will contain terms that state the rent amount - in effect a rental review. If you have, for example, a 2 year lease there could be a condition that states rent is to be reviewed after 12+ months. If this 2 year lease contains no such term then the rental amount is set for the duration of the lease.

RollYerOwn

surpy wrote: »

http://www.irishstatutebook.ie/2004/en/act/pub/0027/print.html

Thanks didn't see this before I replied to the other post..

surpy

Frequency with which rent reviews may occur.

20.—(1) Subject to subsection (3), a review of the rent under the tenancy of a dwelling may not occur—
(a) more frequently than once in each period of 12 months, nor
(b) in the period of 12 months beginning on the commencement of the tenancy.
(2) Subsection (1) has effect notwithstanding any provision to the contrary in the lease or tenancy agreement concerned.
(3) Subsection (1) does not apply despite the fact that a period of less than 12 months has elapsed from—
(a) the last review of the rent under the tenancy, or
(b) the commencement of the tenancy,
if, in that period—
(i) a substantial change in the nature of the accommodation provided under the tenancy occurs, and
(ii) the rent under the tenancy, were it to be set immediately after that change, would, by virtue of that change, be different to what was the market rent for the tenancy at the time of that last review or the commencement of the tenancy, as the case may be.

thers the whole section, LL cannot even attach a clause to the lease to allow an earlier review. the only thing that allows an earlier review is significant changes to the house

RollYerOwn wrote: »

Thanks didn't see this before I replied to the other post..

RollYerOwn

surpy wrote: »

thers the whole section, LL cannot even attach a clause to the lease to allow an earlier review. the only thing that allows an earlier review is significant changes to the house

Spot on. Thanks guys. Definitely clears up the first year of a tenancy. Good to see it specified.


However, in the second year, if the rent was agreed to whatever level both tenant and landlord agree is appropriate, the rent can still be upped by the landlord to the area's "market value" despite the tenant not agreeing to that level to that particular property (which may not itself be worthy of "market value" for the area) and the tenant be forced to pay because they are bound to the lease?


I believe the PRTB index does not distinguish between a 2-bed and 5-bed house in differing areas of Dublin for example...?

murphaph

No! If a new lease is signed that is a rent review and rent is fixed at that until lease expires at least.

RollYerOwn

murphaph wrote: »

No! If a new lease is signed that is a rent review and rent is fixed at that until lease expires at least.

Sorry if I'm beginning to sound a little thick. It's not deliberate I can assure you.


I'd like to think that what you say is the case - as my friend has a lot riding on this - but the term "review" doesn't seem to be defined as being something that occurs when a lease is signed.


I started this topic with the question "is an increase in rent possible through the duration of a lease". I have understood from the contributors here that it is not only possible (if the rent has not been reviewed within the last 12 months) but that the tenant is also obliged to pay the new rent for the duration of the previously agreed lease under new terms of the amount of rent payable (up to market value).


If the signing of subsequent leases means that each signing counts as a review, then it would suggest that rents can't be increased until either:


a) the current lease expires
b) there is no current lease in place


So my question is now simply, does the signing of a lease count as a review of the rent or not?

ted1

RollYerOwn wrote: »

If you move in under an agreement and the rent does not change during the duration of that lease - then it has not increased. Moving in is not itself an increase.


If you move in under an agreement and the rent DOES change to a higher rent during that time, then it has increased. Once.


My point is that I haven't seen any argument that this can't be done within the first year.

When you move in and agree a price this can not change for 12 months. You made a ridiculous statement, now admit that, the statement you made was complete flawed

surpy

RollYerOwn wrote: »

Sorry if I'm beginning to sound a little thick. It's not deliberate I can assure you.


I'd like to think that what you say is the case - as my friend has a lot riding on this - but the term "review" doesn't seem to be defined as being something that occurs when a lease is signed.


I started this topic with the question "is an increase in rent possible through the duration of a lease". I have understood from the contributors here that it is not only possible (if the rent has not been reviewed within the last 12 months) but that the tenant is also obliged to pay the new rent for the duration of the previously agreed lease under new terms of the amount of rent payable (up to market value).


If the signing of subsequent leases means that each signing counts as a review, then it would suggest that rents can't be increased until either:


a) the current lease expires
b) there is no current lease in place


So my question is now simply, does the signing of a lease count as a review of the rent or not?

It's one or the other. You're either in a lease or not. If a lease is signed its a contract for that period. If none is signed a review could happen if none has taken place in the last 12 months.
If you're in a lease you're stuck but rent can't go up.
If you're not in a lease rent can go up but you can leave

surpy

RollYerOwn wrote: »

Spot on. Thanks guys. Definitely clears up the first year of a tenancy. Good to see it specified.


However, in the second year, if the rent was agreed to whatever level both tenant and landlord agree is appropriate, the rent can still be upped by the landlord to the area's "market value" despite the tenant not agreeing to that level to that particular property (which may not itself be worthy of "market value" for the area) and the tenant be forced to pay because they are bound to the lease?


I believe the PRTB index does not distinguish between a 2-bed and 5-bed house in differing areas of Dublin for example...?

Don't mind the prtb index so much. The legislation is for similar houses and specifies exactly what that means. That's what the challenge procedure is for. Use daft as a guide for what's achievable

RollYerOwn

surpy wrote: »

It's one or the other. You're either in a lease or not. If a lease is signed its a contract for that period. If none is signed a review could happen if none has taken place in the last 12 months.
If you're in a lease you're stuck but rent can't go up.
If you're not in a lease rent can go up but you can leave

I agree that that's how I think it should be. I hope it's how it is.

surpy

24.—(1) In this Part “market rent”, in relation to the tenancy of a dwelling, means the rent which a willing tenant not already in occupation would give and a willing landlord would take for the dwelling, in each case on the basis of vacant possession being given, and having regard to—

(a) the other terms of the tenancy, and

(b) the letting values of dwellings of a similar size, type and character to the dwelling and situated in a comparable area to that in which it is situated

RollYerOwn

surpy wrote: »

Don't mind the prtb index so much. The legislation is for similar houses and specifies exactly what that means. That's what the challenge procedure is for. Use daft as a guide for what's achievable

Thanks for reply. Unfortunately with such a paucity of supply and advertised rents often being higher than are usually negotiated there's little to go on.


I do accept that if there is little available on the market then that is a reality, but I would think that the PRTB would be able to provide more data as they should have the actual rents being agreed on the various types of property, wouldn't they?


Anway I've digressed.


Would still like to be sure that a re-signing of a continued lease counts as a rent review (in theory just because the rent may not have changed it doesn't mean that it hasn't been reviewed right?).

runawaybishop

RollYerOwn wrote: »

Thanks for reply. Unfortunately with such a paucity of supply and advertised rents often being higher than are usually negotiated there's little to go on.


I do accept that if there is little available on the market then that is a reality, but I would think that the PRTB would be able to provide more data as they should have the actual rents being agreed on the various types of property, wouldn't they?


Anway I've digressed.


Would still like to be sure that a re-signing of a continued lease counts as a rent review (in theory just because the rent may not have changed it doesn't mean that it hasn't been reviewed right?).

In certain areas advertised rents are far below what they actually go for.

Does the lease set out the rental amount? If so that is contractually binding for the duration of said lease. Rather than asking us the same question over and over again why don't you explain the situation your friend is in and we can advise.

RollYerOwn

runawaybishop wrote: »

In certain areas advertised rents are far below what they actually go for.

Does the lease set out the rental amount? If so that is contractually binding for the duration of said lease. Rather than asking us the same question over and over again why don't you explain the situation your friend is in and we can advise.

It's pretty much as I have described.


Has lived in property several years.
Lease has been continually renewed.
Rent did not increase on signing of current lease several months ago.
Lease specifies the amount of rent.
Lease is up in a 6 months time.
Told within last two weeks that rent was going up in January.
Will not be able to meet the 35% increase in the rent.




I agree I have digressed in places so apologies for that, but I have reduced the responses down to the following situation.


Rent can be reviewed every 12 months and landlord can put up to equal "Market Value" - however that is determined.
So my question remains the same:


Did the last signing of the lease constitute a rent review because the opportunity to review was obviously there or what constitutes a rent review?


If signing a new lease is considered a review, then it is clear that the rent cannot be put up within 12 months of signing the lease.


If this does not constitute a rent review, then the landlord is able to increase the rent with only 28 days notice and demand the tenant pays what is demanded under the other terms (and for the duration) of the existing lease.

MarkAnthony

OP I'm open to correction but if you lodge a complaint with the PRTB the rent is frozen until a determination is made, although at that point you are liable for the back rent if they rule against you.

I'd suggest doing this to get definitive answers to your questions. Also even if the law is on your side, the LL may still say you owe increase, you'll say you won't and no one will score any points for not doing the right thing and referring it to the PRTB.

Best of luck with it.

RollYerOwn

MarkAnthony wrote: »

OP I'm open to correction but if you lodge a complaint with the PRTB the rent is frozen until a determination is made, although at that point you are liable for the back rent if they rule against you.

I'd suggest doing this to get definitive answers to your questions. Also even if the law is on your side, the LL may still say you owe increase, you'll say you won't and no one will score any points for not doing the right thing and referring it to the PRTB.

Best of luck with it.

Thanks. I agree the PRTB is the way to go as my friend has approached Threshold who have said they can't do anything with an existing lease in place. Not sure what that means tbh!


Reasons for the urgent posting here is the sudden unaffordable increase in rent which is to kick in shortly after Christmas. As you can imagine we're quite worried as there is a child involved that may need to be taken out of school and a move to a different county. Would like to at least have some reassurance that she can stay there til the end of her lease which would give her time to deal with it.


Sorry if that results in repeated questions along the same lines I just figured it seems to come down to the definition of what a review is.

MarkAnthony

No, not at all, sometime the question needs to be repeated over and over again on boards . In all honesty I don't know the answer to the question, common sense would imply that one a lease in in place that was the opportunity to do the review, however not being familiar with the legislation and decisions based on it I can't comment.

Given how long the PRTB take to do anything a complaint with them might give you breathing room and/or get the LL to cop on a bit and perhaps come to an amicable solution.

Other than that what I would do is continue to faithfully pay the current rent on time (without fail) and deal with it after the lease has finished. Leave the place in excellent order, take loads of photographs and move out a day or so early. You can then fight over the deposit if you wish.

OP I offer this advice STRICTLY as what I would do as a lay-tenant while I got advice from Threshold, FLAC and the PRTB. ALL THAT SAID - there seems to be enough time to get this resolved through the correct channels.

RollYerOwn

MarkAnthony wrote: »

No, not at all, sometime the question needs to be repeated over and over again on boards . In all honesty I don't know the answer to the question, common sense would imply that one a lease in in place that was the opportunity to do the review, however not being familiar with the legislation and decisions based on it I can't comment.

Given how long the PRTB take to do anything a complaint with them might give you breathing room and/or get the LL to cop on a bit and perhaps come to an amicable solution.

Other than that what I would do is continue to faithfully pay the current rent on time (without fail) and deal with it after the lease has finished. Leave the place in excellent order, take loads of photographs and move out a day or so early. You can then fight over the deposit if you wish.

OP I offer this advice STRICTLY as what I would do as a lay-tenant while I got advice from Threshold, FLAC and the PRTB. ALL THAT SAID - there seems to be enough time to get this resolved through the correct channels.

Very much appreciated. Thanks.

Graham

A lease is a contract between the landlord and tenant. The terms of the contract can't be amended after the fact unless the amendment is agreed by both parties OR such variation is provided for within the contract.

If the lease does not have a provision for a rent review, then there is no provision for a rent review.

RollYerOwn

Graham wrote: »

A lease is a contract between the landlord and tenant. The terms of the contract can't be amended after the fact unless the amendment is agreed by both parties OR such variation is provided for within the contract.

If the lease does not have a provision for a rent review, then there is no provision for a rent review.

Thanks but I think Surpy covered that well with the link to the Residential Tenancies Act 2004 - section 21.


http://www.irishstatutebook.ie/2004/en/act/pub/0027/print.html


A review doesn't appear to have to be specified for either side to be entitled to review. Question I'm stuck on is what defines a review has taken place in the case of a renewed lease.


Is it a new tenancy each time a lease is agreed?

runawaybishop

RollYerOwn wrote: »

It's pretty much as I have described.


Has lived in property several years.
Lease has been continually renewed.
Rent did not increase on signing of current lease several months ago.
Lease specifies the amount of rent.
Lease is up in a 6 months time.
Told within last two weeks that rent was going up in January.
Will not be able to meet the 35% increase in the rent.




I agree I have digressed in places so apologies for that, but I have reduced the responses down to the following situation.


Rent can be reviewed every 12 months and landlord can put up to equal "Market Value" - however that is determined.
So my question remains the same:


Did the last signing of the lease constitute a rent review because the opportunity to review was obviously there or what constitutes a rent review?


If signing a new lease is considered a review, then it is clear that the rent cannot be put up within 12 months of signing the lease.


If this does not constitute a rent review, then the landlord is able to increase the rent with only 28 days notice and demand the tenant pays what is demanded under the other terms (and for the duration) of the existing lease.

Your friend has a contract in place to pay X rent until X date. This cannot be changed until then. When the lease expires in 6 months a rent review can take place and a new rent be decided, this rent review can push the rent up or down, but in light of current market trends it is to be expected it will rise. If your friend disagrees that this new rent is in line with market rates they can appeal. If your friend believes the rent is in line with market rates but they cannot pay them then they must give appropriate notice and move out.

Your friend can always negotiate a lower rent - they are a model tenant, the house wont be left empty for any time etc etc.,

Graham

Rent review
It is also important to note the level of rent can be renegotiated at the expiry of the lease by both landlord and tenant. Otherwise, the rent charged must be as set out in the agreement.
For a full breakdown of the legal position with regard to breaking a fixed term tenancy, please see Terminating a Fixed Term Tenancy

http://www.prtb.ie/search-results/news/article/2014/02/11/breaking-a-fixed-term-lease