Residential Tenancies Act 2004 becomes law with significant implications for the private residential rental sector

1st September 2004 was the "commencement date" for the Residential Tenancies Act, 2004.

It is important to note that it applies to every dwelling the subject of a tenancy, including a tenancy created before the Act was passed.

The Act has introduced numerous changes to the legislation governing the relationship of landlord and tenant, which landlords in the private rental sector need to familiarize themselves with. Failure to abide by the rules could result in prosecution and the imposition of considerable fines.

• The Act requires landlords to register with the Private Residential Tenancies Board (PRTB) within three months from the commencement date - i.e. by the 1st December 2004.
• Landlords with a single tenancy will incur a €70 registration fee and landlords registering in respect of a number of tenancies can avail of a composite registration fee of €300.
• Delay in registering will result in a late penalty fine of €140. Those who refuse to pay shall be liable for a fine of up to €3,000 and/or six months in prison, along with a daily fine of €250 for a continuing offence.
• Rent increases may not occur more than once a year during the tenancy and landlords will not be able to seek rent increases greater than the going market rate.
• Depending on the length of occupation of a rented dwelling, the termination notice period shall range from a minimum of 28 days to a maximum of 112 days for landlords and from a minimum of 28 days to a maximum of 56 days for tenants.

The Landlord can terminate without specifying grounds during the first 6 months, but once a tenancy has lasted 6 months, the landlord will be able to terminate that tenancy during the following 3 ½ years only if any of the following apply;

• The tenant does not comply with the obligations of the tenancy.
• The dwelling is no longer suited to the occupant's accommodation needs (e.g. overcrowding).
• The landlord intends to sell the dwelling in the next 3 months.
• The landlord requires the dwelling for own or family member occupation.
• The landlord intends to refurbish the dwelling.
• The landlord intends to change the business use of the dwelling.

Other provisions included in the Act are as follows;

• The abolition of the entitlement to apply, for the first time, for a long occupation equity lease under the 1980 Landlord and Tenant Act.
• The identification of management companies in tenancy registration details.
• The strengthening of the local authority powers to deal with anti-social behaviour in their estates.

For further information contact:
Eamon Jones at
Email : ejones@kilroys.ie

© Kilroys Solicitors November 2004