Licensee or tenant?

GGTrek

I have the following issue at the moment on an apartment that I am letting. Two good tenants jointly responsible on part 4 tenancy renting a two bedroom flat, one of the two has provided a termination notice (even if it is too short I do not care in this kind of market), the other wants to stay but he would like to "re-assign" the lease of the the tenant that is leaving, in practice he has found a professional with decent references and he would like to draw a new lease with both him and the new guy jointly responsible which is the most advantageus option for him. I know that I am allowed to refuse this and in such case he might decide to provide a termination notice.
The following thread is actually very informative on the difference between sub-letting and having a licensee: https://www.boards.ie/b/thread/2057247110
I would not like giving part 4 rights to a person introduced by a tenant, I would prefer that this person stays as a licensee of the current tenant and when the current tenant decides to leave I can simply ask the current tenant to provide me the apartment vacant. However there are several posts stating that a licensee in such situation can ask me (better force me) to put him in the tenancy agreement and acquire part 4 rights after 6 months of occupation, I guess the relevant part of the act would be section 50(3) and (4) of the RTA 2004:
"(3) Any person who the landlord accepts as a tenant of a dwelling on, or subsequent to, a Part 4 tenancy coming into existence in respect of it, shall, on his or her having been in occupation of the dwelling for a continuous period of 6 months (and that tenancy still subsists), benefit from the protection of that tenancy; accordingly, the rights, restrictions and obligations under this Part shall, on and from the expiry of that period of 6 months, apply in relation to that person as they apply in relation to the multiple tenant whose continuous occupation gave rise to the Part 4 tenancy's existence.

(4) The reference in subsection (3) to a landlord's accepting a person as a tenant is a reference to his or her accepting a person as a tenant—
(a) whether as a replacement for any of the existing multiple tenants or as an additional tenant to them, and
(b) whether or not the person was immediately before that acceptance a licensee in occupation of the dwelling.

"
But what is not clear to me is: how should I express the acceptance (or better in my case refusal) of having the person as a tenant so that he can only be considered a licensee? Can I send a letter to the remaining tenant that I refuse this person as a tenant but he is allowed to decide to accept him as a paying guest and therefore become his licensee? From the wording of the law above I don´t see how a licensee of my tenant would become my tenant after 6 months if I don´t expressely accept him as a new tenant, but I am open to any evidence of the contrary.

Michael D Not Higgins

First of all, I'd suggest having a chat with the tenant on your plan. Explain they still have security of tenure and the licensee is effectively a paying guest.

In the situation of a licensee, he would be paying his rent to the head tenant who would pay you. The licensee would not have a contract with you and you would only have a right over the tenant for rent, damages, etc. I would make this clear to both tenant and licensee, and that the tenant is responsible for the licensee, e.g. any breach of the lease caused by the licensee's actions is the responsibility of the tenant to rectify. This should help define the boundaries of the relationship as you are likely much more versed in the law than they are.

campingcarist

I believe that one of the disadvantages of having a licensee in your property is that if the tenant falls sick, has an accident etc., and is unable to pay the rent, you are unable to look to the licensee for payment as the licensee has no contract with you.

Again, after six months in occupation, a licensee may ask the landlord of the property that he become a tenant with all tenant's rights under the various RTA legislations.

However, I stand to be corrected.

GGTrek

campingcarist wrote: »

I believe that one of the disadvantages of having a licensee in your property is that if the tenant falls sick, has an accident etc., and is unable to pay the rent, you are unable to look to the licensee for payment as the licensee has no contract with you.

Again, after six months in occupation, a licensee may ask the landlord of the property that he become a tenant with all tenant's rights under the various RTA legislations.

However, I stand to be corrected.

You are correct, I found the relevant part in section 50 or the RTA:
"(7) A person who is lawfully in occupation of the dwelling concerned as a licensee of the tenant or the multiple tenants, as the case may be, during the subsistence of a Part 4 tenancy may request the landlord of the dwelling to allow him or her to become a tenant of the dwelling.
(8) The landlord may not unreasonably refuse to accede to such a request; if the request is acceded to—
(a) an acknowledgement in writing by the landlord that the requester has become a tenant of the landlord suffices for the purpose,"
It is section 50(3) in conjuction with section 50(7)(8) that provide this additional right. However I need to receive an explicit written request, if no request is received he stays a licensee of my current tenant. It is basically the licensee own choice after 6 months, from the best of my understanding if he does not express his choice directly to me he stays a licensee even after the first 6 months have passed.
I do not care much about about having another tenant being responsible for the rent, since the current one is fully capable on his own to pay the rent for the whole apartment for many months even without working and tenant obligations are very lightly enforced in Ireland due to RTB inefficiency and bias. What I care about is that if the current tenant (who is a mobile professional) decides to leave I am free to fully terminate the tenancy.