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Signing a new lease

  • 25-07-2020 1:04pm
    #1
    helldesign
    Registered Users Posts: 59 ✭✭


    Hi,

    The apartment I rent for almost 3 years and 9 months finally got sold after over an year of uncertainty since they announced it. Before the pandemic I was warned by the property agent that the LL is seeking 4% increase of the rent. In the new contract, which they sent me 3 days ago, the rent payment is indeed 4% higher and given the current crisis I can't afford it anymore. The business I work in was closed for about 3 months and now we are not getting always our full hours. So I probably have to start thinking to move out and find something more affordable...

    My question is - will the new contract (1 year fixed term) put me in a disadvantage when I decide to leave before the lease is over? Will it change the length of the leaving notice I must give to the LL?

    Am I obliged to sign the new 1 year lease given the fact I'm thinking to leave before that year is over (I realize that I have to pay the updated rent in all cases).


    Thanks


Comments

  • #2
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    You are under no obligation to sign a new lease. In your circumstances I wouldn't.

    Change of landlord does not alter the length of your tenancy or the notice periods your are obligated to give.


  • #3
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    After the rent increase, will your new rent be in line with local market rents for similar properties?


  • #4
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    Graham wrote: »
    After the rent increase, will your new rent be in line with local market rents for similar properties?

    My rent was never increased since I moved in (different owners), so it could be even under, not sure. That increase was coming sooner or later. The problem is the timing of the increase with the current crisis.


  • #5
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    It may be worth looking into housing supports to see if you're entitled to any assistance, at least until your income recovers.


  • #6
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    Graham wrote: »
    You are under no obligation to sign a new lease. In your circumstances I wouldn't.

    Change of landlord does not alter the length of your tenancy or the notice periods your are obligated to give.


    After the pandemic I expressed my concerns about the new rent with the agent and he couldn't confirm if the rent will go up given the situation.
    In April they asked me in an email to confirm if I want a new lease, not mentioning the rent price, and I confirmed.
    I don't know if that binds me in some way to sign it.

    On my other questions, what exactly will change for me signing the new lease?

    Edit: typo


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  • #7
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    If you sign a lease you are obligated to stay until the end of the term or find a replacement tenant.

    If you don't sign a lease, your rights don't change and you only have to give statutory notice.


  • #8
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    Graham wrote: »
    If you sign a lease you are obligated to stay until the end of the term or find a replacement tenant.

    If you don't sign a lease, your rights don't change and you only have to give statutory notice.


    I see. They will not be happy if I refuse to sign it now. Can they force me though? I know that they could potentially up the rent by 12%, since it wasn't increased for 3 years.

    Anyway, thank you very much for the information, I really appreciate it!


  • #9
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    You cannot be forced to sign a new lease.

    They may be able to increase the rent more than 4% after the emergency period ends.

    One benefit of signing a new lease now may be that your current rent is locked in for the duration of the lease. You would need to read the wording of the lease carefully.


  • #10
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    Graham wrote: »
    You cannot be forced to sign a new lease.

    They may be able to increase the rent more than 4% after the emergency period ends.

    One benefit of signing a new lease now may be that your current rent is locked in for the duration of the lease. You would need to read the wording of the lease carefully.

    Then I guess I have to be careful not to anger them, when I suggest not to sign the lease, because the rent freeze is over in a week or so.

    Thanks again!


  • #11
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Or get the rent review out of the way first ;)


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  • #12
    Del2005
    Registered Users Posts: 18,851 ✭✭✭✭Del2005


    Graham wrote: »
    You cannot be forced to sign a new lease.

    They may be able to increase the rent more than 4% after the emergency period ends.

    One benefit of signing a new lease now may be that your current rent is locked in for the duration of the lease. You would need to read the wording of the lease carefully.

    The OP is close to the end of their part 4 tenancy so while they can't be forced to sign a new lease they can be evicted once they get the required notice and the eviction ban is lifted, the landlord can do the rent review without a new lease as its nearly 4 years since the last rent review.

    The choice for the OP is agree to the 4% increase and sign the new 1 year lease, which has zero consequences if they break it, or risk getting an eviction notice/12% increase.


  • #13
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    Del2005 wrote: »
    The choice for the OP is agree to the 4% increase and sign the new 1 year lease, which has zero consequences if they break it

    I thought that new lease means I'll be stuck in the apartment for a year, I'm confused.

    How long would be the eviction notice in my case? I read on the rtb website, that between 3-4 years is 6 months, but not sure if applies for me.


  • #14
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    helldesign wrote: »
    I thought that new lease means I'll be stuck in the apartment for a year

    You can find a replacement tenant, if your landlord declines the replacement you can terminate the lease early with the statutory notice period.


  • #15
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    Graham wrote: »
    if your landlord declines the replacement you can terminate the lease early with the statutory notice period.

    Which I think would be 3 months in my case.

    Cheers :thumbsup:


  • #16
    accensi0n
    Registered Users Posts: 2,738 ✭✭✭accensi0n


    Del2005 wrote: »
    The OP is close to the end of their part 4 tenancy so while they can't be forced to sign a new lease they can be evicted once they get the required notice and the eviction ban is lifted

    Yeah, but only for specific reasons, as the regulations were updated in 2017 so that at the end of a part 4 cycle a tenancy can no longer be ended for no reason.


  • #17
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    Just one last thing. There is a break clause in the contract:
    The tenant and/or landlord may end the tenancy in the first six
    months of the tenancy without any penalty    , once full and correct
    notice is provided in writing as per the Residential Tenancy Act
    2004 and any subsequent amendments to the act
    Also Section 34 of the Residential Tenancy Act 2004 and any
    subsequent amendments to the act may be relied upon to end the
    tenancy if a PART 4 tenancy is in place

    Does it mean the LL can evict me anyways in the first six months?


  • #18
    meijin
    Registered Users Posts: 1,251 ✭✭✭meijin


    helldesign wrote: »
    Does it mean the LL can evict me anyways in the first six months?

    but your tenancy started almost 4 years ago... maybe they think they can use it with new contract, but they can't as you have Part 4 tenancy protection after the initial 6 months in the property


  • #19
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    meijin wrote: »
    but your tenancy started almost 4 years ago... maybe they think they can use it with new contract, but they can't as you have Part 4 tenancy protection after the initial 6 months in the property

    Hmm, they probably have lawyers in their team and it's weird why would they include it if they can't use it. Or it's just a standard copy/paste contract, who knows.


  • #20
    JoChervil
    Registered Users Posts: 2,001 ✭✭✭JoChervil


    I would sign a lease with a break clause in a middle of it, so you will have to stay only 6 months then with no hassle to assign it to someone else (though I don't think it would be any problem to find a new tenant).

    When they increase rent by 4% they are done. They can't go back later and increase it by 12%. They can only increase it by 4% from the last increase (which will be your new lease). So maybe in a longer run it would be better for you to stay in a place, which rent is below the market.


  • #21
    JoChervil
    Registered Users Posts: 2,001 ✭✭✭JoChervil


    helldesign wrote: »
    Just one last thing. There is a break clause in the contract:



    Does it mean the LL can evict me anyways in the first six months?

    So this contract doesn't look like a lease contract only confirming your Part 4 tenancy starting again. So regular notice will be required then.


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  • #22
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    JoChervil wrote: »
    So maybe in a longer run it would be better for you to stay in a place, which rent is below the market.

    I agree with that a 100%, except the dwelling is meant for a couple. I used to live here with my ex-girlfriend, now I'm paying alone.
    Having an apartment mate would be nice, but I have a clause against subletting/getting paying guests.
    JoChervil wrote: »
    So this contract doesn't look like a lease contract only confirming your Part 4 tenancy starting again. So regular notice will be required then.

    It's a fixed term 1 year contract with the break clause.


  • #23
    JoChervil
    Registered Users Posts: 2,001 ✭✭✭JoChervil


    helldesign wrote: »
    I agree with that a 100%, except the dwelling is meant for a couple. I used to live here with my ex-girlfriend, now I'm paying alone.
    Having an apartment mate would be nice, but I have a clause against subletting/getting paying guests.

    Subletting is, if you moved out and rent it to someone else. Paying guests would be AirB&B.

    So ask for a close to have a co-tenant or a licensee.


  • #24
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    JoChervil wrote: »
    Subletting is, if you moved out and rent it to someone else. Paying guests would be AirB&B.

    So ask for a close to have a co-tenant or a licensee.

    I didn't know that.

    I thought that I'm not allowed to let anyone that is not in the contract live here. If that's not the case, maybe this will be my solution.


  • #25
    JoChervil
    Registered Users Posts: 2,001 ✭✭✭JoChervil


    I am not even sure, if you need to ask for it. If someone else moved in, you have an obligation to inform the landlord, that there is another person living in an apartment.

    After 6 months this person may ask the landlord to become a tenant. They then may agree for it or not. If not, this person will stay as an licensee.


  • #26
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    JoChervil wrote: »
    I am not even sure, if you need to ask for it. If someone else moved in, you have an obligation to inform the landlord, that there is another person living in an apartment.

    After 6 months this person may ask the landlord to become a tenant. They then may agree for it or not. If not, this person will stay as an licensee.

    Right.

    Thanks for your help!


  • #27
    JoChervil
    Registered Users Posts: 2,001 ✭✭✭JoChervil


    But my knowledge about this matter is 2 years old. Things might have changed since then...


  • #28
    JoChervil
    Registered Users Posts: 2,001 ✭✭✭JoChervil


    helldesign wrote: »

    It's a fixed term 1 year contract with the break clause.

    So they mixed two things together: fix term contract with Part 4 tenancy. They probably want it all: to be able to break the lease, whenever they like (in first 6 months) and have it only for 1 year.

    So be careful. Because you won't be able to break this contract between 6 and 12 months. But after that you automatically become Part 4 tenant. You can send them a filled form about it or not. I usually send it to be sure.

    After a year they won't be able to force you to sign next lease and they won't be able to evict you without selling it or moving in a family member.

    I see that on RTB page about subletting they slightly changed it. Earlier it was clearly stated that you have to move out, while now maybe it is a grey area.


  • #29
    helldesign
    Registered Users Posts: 59 ✭✭helldesign


    JoChervil wrote: »
    So they mixed two things together: fix term contract with Part 4 tenancy. They probably want it all: to be able to break the lease, whenever they like (in first 6 months) and have it only for 1 year.

    So be careful. Because you won't be able to break this contract between 6 and 12 months. But after that you automatically become Part 4 tenant. You can send them a filled form about it or not. I usually send it to be sure.

    After a year they won't be able to force you to sign next lease and they won't be able to evict you without selling it or moving in a family member.

    I see that on RTB page about subletting they slightly changed it. Earlier it was clearly stated that you have to move out, while now maybe it is a grey area.

    So as I see things, my only option to stay here would be to sign the contract and get a roommate to share.

    It seems the eviction ban will be extended until January, so practically LL will not be able to use the break clause to evict me (I think?).

    The other options is as someone mentioned above, not to sign and risk 12% increase in revenge.


  • #30
    Del2005
    Registered Users Posts: 18,851 ✭✭✭✭Del2005


    JoChervil wrote: »
    I am not even sure, if you need to ask for it. If someone else moved in, you have an obligation to inform the landlord, that there is another person living in an apartment.

    After 6 months this person may ask the landlord to become a tenant. They then may agree for it or not. If not, this person will stay as an licensee.

    After 6 months the landlord has no option but to let the licencee on the lease

    http://www.irishstatutebook.ie/eli/2004/act/27/section/50/enacted/en/html#:~:text=(7)%20A%20person%20who%20is,a%20tenant%20of%20the%20dwelling.


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  • #31
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    You will need to be given a minimum of 3 months notice in writing of the new rent.
    Also and I am open to correction but I thought rent increase notices were banned until 1st August
    Which would mean the OP has until 1st Nov to find alternative accommodation before paying any increase
    Not sure where the OP lives but plenty of property to rent in Dublin and I would say more to come on stream both in Dublin and countrywide shortly


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