Termination of houseshare rental agreement

LFC.Till.I.Die · 30-05-2020 7:25pm #1

Dear Boards.ie colleagues

A much trusted and admired friend suggested that I post my question on this site for some input and guidance... I hope you can help me.

I signed a 12-month rental agreement with a letting agent at the end of September 2019 for a 2-bedroom flat in Dublin, with an end date of September 2020.

It was initially with a friend who subsequently moved but I managed to quickly let out the room to another colleague and we signed a separate 12-month contract between ourselves with a 30-day notice period clause.

Unfortunately he gave me his 30-day notice yesterday. This means that from the end of June, I need to pay the full rent on my own.

As I am unable to pay the rent in full myself, I contacted the letting agent today to give my own 30-day notice but they stated that there is no negotiation and regardless of the circumstances, I could not break my 12 month lease and had to pay the amount in full till the end of the original contract period, September 2020. They were adamant that the contract cannot be broken, regardless of the circumstances and that the 12 month commitment stands and if I were to leave, I would still be liable for the remaining months and any other cost overheads.

Because of the current Covid situation, rent in the Dublin area have dropped and I will not be able to find a tenant to let the room at the price I was getting from the departing tenant. I can see advertisements on Daft.ie for similar flats in the same development for 10-15% lower.

Also, due to the economic downturn I have some anxiety about my employment and income status in the coming months, and cannot afford to shoulder the rent on my own. We have already paid our rent for June 2019, and the agent is holding a deposit equal to one month's rent.

To make matters worse, I have lost my copy of the contract, and the agent insists there was no release clause or notice period stipulated in the contract. Can I simply send my 30 notice and move out at the end of that period? Will I be legally liable for the remainder of the contract if there was no get out clause in it?

Can I give one-month notice at the end of June and my deposit can cover the final month?

Or if I were to pay July’s rent, how can I be sure to get my deposit back?

I am really concerned that if I do not fulfil the 12 month agreement, that I will suffer financial loss and end up with nowhere to live. As a non-national, my choices are limited right now.

My trusted friend believes that any contract must have a get out clause and in my case, it should be a 30-day notice period, regardless of the fact that the clause was included or not.

Thanks in advance for your responses and guidance.

Much appreciated!!

LFC.Till.I.Die

the_syco · 30-05-2020 9:02pm

https://onestopshop.rtb.ie/ending-a-tenancy/notice-periods-that-a-landlord-should-give/

Tenants notice periods:
6+ months, but less than 1 year; 35 days

Sample notice; https://onestopshop.rtb.ie/images/uploads/general/Sample_Notice_of_Termination_-_Tenant_-_Standard_Notice.docx

How did you give your notice?

Dav010 · 30-05-2020 9:38pm

the_syco wrote: »

https://onestopshop.rtb.ie/ending-a-tenancy/notice-periods-that-a-landlord-should-give/

Tenants notice periods:
6+ months, but less than 1 year; 35 days

Sample notice; https://onestopshop.rtb.ie/images/uploads/general/Sample_Notice_of_Termination_-_Tenant_-_Standard_Notice.docx

How did you give your notice?

That is fine if the op has a Part 4 tenancy, but he signed a 12 month term contract.

Op, you either assign the lease to someone else, or you are liable for the full term of the contract. But in reality, what are they going to do if you leave early?

LFC.Till.I.Die · 30-05-2020 9:49pm

So are you saying that considering I have had the flat >6 months that my notice should be 35 days from now? That would be reasonable but I am worried that the agent will play games and say i am not entitled to the deposit back.

Havent given notice yet, was just thinking how things will work out now that the other guy is moving out.

LFC.Till.I.Die · 30-05-2020 9:51pm

Dav.. thats what I mean. Can I give notice now, cancel the DD and just use the deposit to fund July and pay no more?
That would suit me.
But if no DD is paid at the start of July, will I be evicted??

Dav010 · 30-05-2020 10:30pm

LFC.Till.I.Die wrote: »

Dav.. thats what I mean. Can I give notice now, cancel the DD and just use the deposit to fund July and pay no more?
That would suit me.
But if no DD is paid at the start of July, will I be evicted??

By signing a 12 month contract, you are tied into it for the term of the contract, so you are legally liable for the rent during that 12 months. You can assign the lease, in other words, get in someone else to take over the remainder of the lease, but as you have pointed out, the chances of this are slim when there are other cheaper options available locally.

You can choose to cancel the DD, and give notice now, but that does not change the fact that you signed a 12 month lease agreement and legally you are on the hook for the rent during that period. But, what are the chances of the LL taking a case to the RTB for the outstanding rent? Probably small enough.

As it happens, you can’t be evicted during the Convid emergency period, but the chances of an RTB dispute being commenced will go up if you stay there and stop paying rent. You also have to consider that you may need a reference as most if not all LLs look for them and may contact your current letting agent/LL.

So put simply, by signing a 12 month lease, you are indeed legally responsible for the rent for the full term of the lease unless you get someone else to take your place.

LFC.Till.I.Die · 31-05-2020 7:40am

Dav010 wrote: »

By signing a 12 month contract, you are tied into it for the term of the contract, so you are legally liable for the rent during that 12 months. You can assign the lease, in other words, get in someone else to take over the remainder of the lease, but as you have pointed out, the chances of this are slim when there are other cheaper options available locally.

You can choose to cancel the DD, and give notice now, but that does not change the fact that you signed a 12 month lease agreement and legally you are on the hook for the rent during that period. But, what are the chances of the LL taking a case to the RTB for the outstanding rent? Probably small enough.

As it happens, you can’t be evicted during the Convid emergency period, but the chances of an RTB dispute being commenced will go up if you stay there and stop paying rent. You also have to consider that you may need a reference as most if not all LLs look for them and may contact your current letting agent/LL.

So put simply, by signing a 12 month lease, you are indeed legally responsible for the rent for the full term of the lease unless you get someone else to take your place.

So I am considering the following.
June rent was paid a couple of says ago anyway.
I cancel the DD now
I provide 35 days notice towards the end of June
I tell the agent that the deposit should be used to cover July rent
That leaves 2 months on the lease that I will actively look to get a replacement tenant for

James 007 · 31-05-2020 8:51am

Dav010 wrote: »

But, what are the chances of the LL taking a case to the RTB for the outstanding rent? Probably small enough.
.

The chances during Covid-19 may have increased. They may not get tenants at the same rent. They may take a case against you.

Dav010 · 31-05-2020 9:24am

LFC.Till.I.Die wrote: »

So I am considering the following.
June rent was paid a couple of says ago anyway.
I cancel the DD now
I provide 35 days notice towards the end of June
I tell the agent that the deposit should be used to cover July rent
That leaves 2 months on the lease that I will actively look to get a replacement tenant for

That still leaves you with the reference issue, it’s going to be bad. You will now have to hope the next LL doesn’t require one, which is unlikely. Also, you should start making enquiries about a new rental now before you burn your bridges, there many be more rentals and lower rents, but they may be short term let’s (<6 months) and may still be difficult to rent.

Graham · 31-05-2020 10:08am

Mod Note

any discussion of how to ignore the law (including the residential tenancies act) will results in an immediate infraction/threadban.

Claw Hammer · 31-05-2020 5:18pm

What you can do, is propose a replacement assignee who can be anybody. if the landlord refuses to accept the proposed assignment you can terminate the tenancy by giving notice.
Residential tenancies Act.
186.—(1) This section has effect—
terminate where
consent to (a) despite the fact that the tenancy concerned is one for a fixed assignment or subletting withheld.
period, and
(b) despite anything to the contrary in the lease or tenancy
agreement concerned.
(2) If a landlord of a dwelling refuses his or her consent to an
assignment or sub-letting of the tenancy concerned by the tenant, the
tenant may serve a notice of termination in respect of the tenancy and
terminate it accordingly.
(3) The period of notice to be given by that notice of termination is—
(a) that specified in section 66, or
(b) such lesser period of notice as may be agreed between the
landlord and the tenant in accordance with section 69,
even if the lease or tenancy agreement provides for a greater period of
notice to be given.

gnr vr fan · 02-06-2020 9:05pm

Claw Hammer wrote: »

What you can do, is propose a replacement assignee who can be anybody. if the landlord refuses to accept the proposed assignment you can terminate the tenancy by giving notice.
Residential tenancies Act.
186.—(1) This section has effect—
terminate where
consent to (a) despite the fact that the tenancy concerned is one for a fixed assignment or subletting withheld.
period, and
(b) despite anything to the contrary in the lease or tenancy
agreement concerned.
(2) If a landlord of a dwelling refuses his or her consent to an
assignment or sub-letting of the tenancy concerned by the tenant, the
tenant may serve a notice of termination in respect of the tenancy and
terminate it accordingly.
(3) The period of notice to be given by that notice of termination is—
(a) that specified in section 66, or
(b) such lesser period of notice as may be agreed between the
landlord and the tenant in accordance with section 69,
even if the lease or tenancy agreement provides for a greater period of
notice to be given.

This is 100% correct. Offer to assign the tenancy. If they refuse then you are in luck, as legally then you have the right to issue a 30 day notice that you are going to terminate the tenancy. All forms in order to this are present on the RTB website. Look it up and ring the RTB. I find them to be very helpful.

Let me know how you get on.

Dav010 · 02-06-2020 10:11pm

gnr vr fan wrote: »

This is 100% correct. Offer to assign the tenancy. If they refuse then you are in luck, as legally then you have the right to issue a 30 day notice that you are going to terminate the tenancy. All forms in order to this are present on the RTB website. Look it up and ring the RTB. I find them to be very helpful.

Let me know how you get on.

In the op, the poster says there is little hope of finding someone to take over the lease.

What if the LL accepts the assignment? He/she might be very happy to have someone take over the property at the current rent, where does that leave the op when there isn’t actually anyone to assign it to?

gnr vr fan · 02-06-2020 11:10pm

Dav010 wrote: »

In the op, the poster says there is little hope of finding someone to take over the lease.

What if the LL accepts the assignment? He/she might be very happy to have someone take over the property at the current rent, where does that leave the op when there isn’t actually anyone to assign it to?

No harm in trying buddy. Its only a letter/notice requesting to assign the tenancy. If the notice gets accepted, you are no worse off. If it gets rejected or even if they don't respond you've won the lotto and can terminate the tenancy

Stop being so negative. No offence but I find most of your comments a bit negative on this thread.

It worked for me in the past, where the offer to assign was refused.

Just keep records of registered post letters.

Dav010 · 02-06-2020 11:49pm

gnr vr fan wrote: »

No harm in trying buddy. Its only a letter/notice requesting to assign the tenancy. If the notice gets accepted, you are no worse off. If it gets rejected or even if they don't respond you've won the lotto and can terminate the tenancy

Stop being so negative. No offence but I find most of your comments a bit negative on this thread.

It worked for me in the past, where the offer to assign was refused.

Just keep records of registered post letters.

I find posters often post what they think the best outcome will be, usually what the op wants to hear, rather than the reality of the situation. In this case the LL is unequivocal about tying the tenant to the term, the op has said getting someone else is going to be difficult because other properties in the area are renting for a lower price, so the ideal outcome for the LL if the op wants to move would be assignment of the lease at the same rent. I agree it’s a free shot, but I’m just not as optimistic as you are that it will benefit the op. That’s not being negative, it is being realistic.

On a side note, I am heartened to see section 69 of the RTA being interpreted correctly, it isn’t always so. Nice to end a post on a positive note.

The_Conductor · 03-06-2020 9:11am

LFC.Till.I.Die wrote: »

So I am considering the following.
June rent was paid a couple of says ago anyway.
I cancel the DD now
I provide 35 days notice towards the end of June
I tell the agent that the deposit should be used to cover July rent
That leaves 2 months on the lease that I will actively look to get a replacement tenant for

The 35 days notice is only for a Part IV tenancy.
You do not have a Part IV tenancy- it does not apply.

You are not entitled to use your deposit as rent- without the express agreement of the letting agent and/or landlord.

You can cancel the DD to your hearts content- and simply lodge the rent at the appropriate time in the specified account- it doesn't have to be a DD

For the sake of 2 month's rent- you're creating a massive potential issue for yourself.

In your position I'd simply accept that I had signed a 1 year contract- I'd make damn sure that the letting agent and/or landlord was aware that I did not intend to stay after the elapse of the fixed term lease- and then I'd look around to find a cheaper alternate from September onwards.

Next time remember that Fixed Term Leases have rights and obligations for both tenants and landlords- its a two way street.

TSQ · 05-06-2020 9:21pm

Claw Hammer wrote: »

What you can do, is propose a replacement assignee who can be anybody. if the landlord refuses to accept the proposed assignment you can terminate the tenancy by giving notice.
Residential tenancies Act.
186.—(1) This section has effect—
terminate where
consent to (a) despite the fact that the tenancy concerned is one for a fixed assignment or subletting withheld.
period, and
(b) despite anything to the contrary in the lease or tenancy
agreement concerned.
(2) If a landlord of a dwelling refuses his or her consent to an
assignment or sub-letting of the tenancy concerned by the tenant, the
tenant may serve a notice of termination in respect of the tenancy and
terminate it accordingly.
(3) The period of notice to be given by that notice of termination is—
(a) that specified in section 66, or
(b) such lesser period of notice as may be agreed between the
landlord and the tenant in accordance with section 69,
even if the lease or tenancy agreement provides for a greater period of
notice to be given.

I am curious: canthe landlord in principle agree to an assignment, but demand to vet the new tenant in the normal way (references, proof of earnings or ability to pay rent, etc)?

Claw Hammer · 08-06-2020 12:10pm

TSQ wrote: »

I am curious: canthe landlord in principle agree to an assignment, but demand to vet the new tenant in the normal way (references, proof of earnings or ability to pay rent, etc)?

The landlord would not be agreeing an assignment but demanding to vet the proposed tenant and then considering whether to accept the assignment. The landlord is under no obligation to accept any proposed assignee.

Graham · 08-06-2020 12:28pm

Claw Hammer wrote: »

The landlord is under no obligation to accept any proposed assignee.

but surely not accepting would then be grounds for the current tenant/s to give notice.

MacDanger · 08-06-2020 3:41pm

gnr vr fan wrote: »

This is 100% correct. Offer to assign the tenancy. If they refuse then you are in luck, as legally then you have the right to issue a 30 day notice that you are going to terminate the tenancy. All forms in order to this are present on the RTB website. Look it up and ring the RTB. I find them to be very helpful.

Let me know how you get on.

I would do this. You can make it clear to the agency that you won't be the slightest bit fussy over who you accept to rent the property.

Then there are two scenarios 1) the LL accepts your offer to reassign; you advertise it and rent it for whatever you can get and cover the shortfall until the end of the tenancy or 2) the LL rejects your offer to reassign, you give the appropriate notice, move out and get your deposit returned.

Iaminthegame · 08-06-2020 10:26pm

The_Conductor wrote: »

The 35 days notice is only for a Part IV tenancy.
You do not have a Part IV tenancy- it does not apply.

You are not entitled to use your deposit as rent- without the express agreement of the letting agent and/or landlord.

You can cancel the DD to your hearts content- and simply lodge the rent at the appropriate time in the specified account- it doesn't have to be a DD

For the sake of 2 month's rent- you're creating a massive potential issue for yourself.

In your position I'd simply accept that I had signed a 1 year contract- I'd make damn sure that the letting agent and/or landlord was aware that I did not intend to stay after the elapse of the fixed term lease- and then I'd look around to find a cheaper alternate from September onwards.

Next time remember that Fixed Term Leases have rights and obligations for both tenants and landlords- its a two way street.

What is Part 4 tenancy? If we had stayed in a 12 Month fixed tenancy and did not enforce it one month before expiry, am I still required to serve a notice?

I'm kind of trying to decode, why a notice is required if something was a fixed term tenancy?

Dav010 · 08-06-2020 11:00pm

Iaminthegame wrote: »

What is Part 4 tenancy? If we had stayed in a 12 Month fixed tenancy and did not enforce it one month before expiry, am I still required to serve a notice?

I'm kind of trying to decode, why a notice is required if something was a fixed term tenancy?

You acquire Part 4 tenancy rights automatically once you pass the six month mark in a tenancy. With that comes statutory entitlements and obligations, one of which is a minimum notice period which is linked to the amount of time you have been a tenant in the property. A fixed term agreement can give you additional rights, for instance a LL cannot evict you during that fixed term, unless you’ve been naughty, but it also means you have obligations during that fixed term, In a part 4 tenancy you just give the required notice, but in a fixed term, you are responsible for the rent during the term, but you still must give the statutory minimum notice before you leave, your contract does not change this.

Google is your friend, you will find a lot of info online about both part 4 and fixed term tenancies.

Iaminthegame · 08-06-2020 11:06pm

Dav010 wrote: »

You acquire Part 4 tenancy rights automatically once you pass the six month mark in a tenancy. With that comes statutory entitlements and obligations, one of which is a minimum notice period which is linked to the amount of time you have been a tenant in the property. A fixed term agreement can give you additional rights, for instance a LL cannot evict you during that fixed term, unless you’ve been naughty, but it also means you have obligations during that fixed term, In a part 4 tenancy you just give the required notice, but in a fixed term, you are responsible for the rent during the term, but you still must give the statutory minimum notice before you leave, your contract does not change this.

Google is your friend, you will find a lot of info online about both part 4 and fixed term tenancies.

Thankful for response. Google confused me as on this forum people had suggested part 4 unless enforced means tenant can leave on 365th day.

So, notice has to be given irrespective of the fixed term expiry or not. Makes sense. At the same time, read the para from lease below. It does indicate kind of, that lease may continue subject to 3 scenarios. Thus, if the scenario does not take place, it ends? Can that be interpreted.

In the presence of an agreed Fixed Term the following applies:

On expiration of the Fixed Term the tenancy may continue after the term as follows (first subject to extending the lease to the month end, if applicable):
• for a further fixed term, by mutual agreement.
• by the Tenant serving on the Landlord notice to claim Part 4 Tenancy rights commencing
from the Tenancy Commencement Date, provided that the Tenant has been in continuous occupation for 6 months. Such notice must be received no earlier than 3 months and no later than 1 month prior to the expiry of this Fixed Term.
• in the absence of any formal agreement to continue after the expiration of the Fixed Term, the tenancy will continue as a Part 4 tenancy commencing from the Tenancy Commencement Date.

Dav010 · 08-06-2020 11:13pm

Even if you have a fixed term and want to leave at the end of it, you must give the statutory minimum notice for the period you have stayed there. You and your LL can agree a shorter notice period, but only after you have given the statutory notice and the shorter notice period cannot be a condition of your lease agreement.

Your tenancy does not end at the conclusion of your fixed term, unless you want it to end and have given the correct notice. Part 4 rights begin after 6 months and continue for 6 years, so at the end of your fixed term, the tenancy just reverts to a standard Part 4 tenancy. This is why LLs usually don’t bother with fixed term tenancy agreements.

Claw Hammer · 09-06-2020 1:34pm

Graham wrote: »

but surely not accepting would then be grounds for the current tenant/s to give notice.

It would be grounds for the tenant to terminate.

Termination of houseshare rental agreement

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