Landlord / Tenant Advice

Landlord Frequently Asked Questions

How are non-resident landlords taxed?
On receipt of the annual tax return, profit rent, i.e,. rent received less allowable expenses. will be assessed. The landlord is entitled to claim relief for expenses, which are usually allowed in arriving at the rental profit. The landlord is also entitled to a credit for the tax deducted by the tenant. Form R 185. should be submitted by the landlord with the tax return to obtain credit for the tax retained.

Rent allowance.
Tax relief. may be claimed by a tenant paying rent to a landlord for private accommodation by completing Form Rent I. This form is available at www.revenue.ie. Revenue's Forms and Leaflets Service at LoCaIl 1890 30 67 06 or from any Revenue office. The annual maximum relief allowable is given on Form Rent I.

Keeping records
You must keep full and accurate records of your lettings from the start. You need to do this whether you send in a simple summary of your profit/loss. prepare the accounts yourself. or, have an accountant do it. All supporting records such as invoices. bank and building society statements. cheque stubs. receipts etc.. should also be retained. You must keep your records for six years unless your Revenue office advises you otherwise.

What if Rents are payable to a non-resident landlord?
If a landlord resides outside the country and rent is paid directly to him/her or to his/her bank account either in the State or abroad. tax must be deducted by the tenant at the standard rate of tax (currently 20%) from the gross rents payable. Failure to deduct tax leaves the tenant liable for the tax that should have been deducted.
Example:
Gross rent per month €1000
Deduct tax (I 000 x 20%) €200
Pay to Landlord (1000-200) €800

The tenant must also give a Form R185* to the landlord to show that the tax has been accounted for to Revenue.
Where an agent. resident in the State is appointed by the non-resident landlord to manage the property and the agent is collecting the rents, the rents must be paid gross to the agent. The agent is then chargeable to tax on the rents as Collection Agent for the landlord and is required to submit an annual tax return and account for the tax due under Self Assessment. leaflet IT10 Guide to Self Assessment- provides more detailed information.
Note: The agent appointed need not be a professional person, i.e., it can be a family member or other person prepared to take on the responsibility and undertakes to make annual tax returns and account to Revenue for the tax due.
* (Available from www.revenue.ie, Revenue's Forms and leaflets Service at
LoCall 1890 306706 or your local Revenue office).

What expenses can be claimed for Wear and Tear?
If a premises is let for residential purposes and it is furnished. a claim can be made for a wear and tear allowance based on the cost of the furniture and fittings. It will be necessary to retain an itemised list of expenditure incurred each year.
With effect from 4 December 2002 the allowance is 12.5% per year over 8 years.
For the period between 1 January 2001 and 3 December 2002 the allowance was 20% per year over 5 years.
Prior to 1 january 2001 the allowance was 1 5% per year for the first 6 years and 10% in the 7th year.

What expenses can be claimed?
Broadly speaking. in calculating your rental expenses you can deduct expenses so long as they-
Are incurred wholly and exclusively for business purposes, and . are not of a capital nature.
The following are examples of the type of expenses that may be claimed for:
Rents payable by the landlord in respect of the property. i.e.. ground rent
Rates or levies payable on the property. i.e.. water rates, refuse collection etc.
Cost of any service or goods provided by the landlord. i.e.. gas. electricity. central heating. telephone rental. cable television etc. for which they do not receive a separate payment
Maintenance, i.e.. cleaning and general serving of the premises
Insurance of the premises against fire. public liability insurance, etc.
Management. i.e.. actual cost of collection of rents. advertising. etc.
Legal fees to cover the drawing up of leases or the issue of solicitors letters to tenants who default on payment of rent.
Accountancy fees incurred for the purposes of preparing a rental income account.
Wear and Tear on furniture and fittings. i.e.. carpets. cookers, central heating etc. (See page 4).
Interest paid on monies borrowed for the purchase, improvement or repair of certain properties. This is covered in more detail overleaf.
Repairs, i.e.. Decorating and general upkeep of the property. A 'repair' means the restoration of an asset by replacing subsidiary parts of the whole asset. Examples of common repairs which are normally deductible in computing rental profits include:
Exterior and interior painting and decorating
Damp and rot treatment
Mending broken windows, doors, furniture and machines . replacing roof slates.
However, landlords may not claim a deduction for their own labour.

Tenants Rights

The following information is a guide for tenants and does not constitute formal legal advice.

As a tenant in private rented accommodation you will have both legal duties and rights. Verbal agreements are binding but written agreements provide a clear record of your agreement should a dispute arise.

The Law

Tenants' Rights

As a tenant you have specified rights within the law. Accompanying these rights are duties including :

  • paying the rent on time

  • keeping the accommodation in good condition and avoiding damage to the property which you are renting.

  • not to cause nuisance or annoyance to those around you.

  • if you have any special terms in your lease you should comply with them also.

  • It is inadvisable to withhold rent if there are problems with the accommodation such as faulty appliances etc. You will usually be in a better position to assert your rights when you have kept to your side of the bargain, i.e. have paid your rent.

  • periodic tenancies require four weeks notice.

  • fixed term tenancies must be completed. If you decide to leave before the agreed date you are liable for the remaining rent, however the landlord may decide to retain only your deposit.

Deposits

Most landlords will require a security deposit; this is usually one month’s rent. The deposit must be recorded in your rent book or you should have a receipt for the amount. Keep your receipt for future reference and/or in case of a disagreement regarding the deposit.

You may lose some or all of your deposit if you:

  • if you leave prior to the end of the agreement or you do not give the required notice.

  • cause damage to the property, apart from normal wear and tear.

  • Leave without paying all your rent or bills.

It is strongly advisable to ask for a receipt or have the deposit amount written in your rent book.

Some landlords may allow you use your deposit in lieu of the final month's rent but this is unusual. It is more common to pay your rent as normal for the last month and receive the deposit back when finally moving out.

Make arrangements with your landlord well in advance of moving out regarding the refund of your deposit. Don't wait until the day you are leaving to sort it out. Arrange a time when your landlord can come around to your house, preferably when all the tenants are there, to settle any bills etc. and refund your deposit. If you think that some or all of your deposit has been unfairly withheld you may also be able to recover the deposits through the Small Claims Court.

Rent Book

As a tenant you are legally entitled to a rent book. Rent payments should be recorded in the rent book. If your landlord issues you with receipts attach them into your rent book in order to have a proper record of your payments. These records will be vital should any disputes regarding your deposit arise when you choose to leave. Again make sure that deposits paid are recorded in the rent book.

Your rent book should contain the following information:

  • the address of the rented house/apartment/flat

  • the name and address of your landlord or her/his agent

  • the name of the tenant(s)

  • the length of the tenancy

  • the amount of rent you pay and how often you pay it e.g. weekly, four weekly or calendar monthly etc.

  • the means by which you pay the rent should be recorded - do you pay in cash, bank draft, standing order etc.

  • utility payments i.e. gas, electricity, cable etc….

  • the amount of deposit paid. It should also mention how and when the deposit is to be returned.

  • a statement of information, which advises rights and duties of landlord and tenants in relation to the tenancy.

  • an inventory of the items supplied by landlord, ensure both yourself and the landlord sign and date this inventory

Rent Increases

If you do not have a fixed term lease your rent can be increased by the landlord as often as he/she likes. For example in relation to a monthly tenancy the landlord must give you one month's notice of the rent increase. The landlord can also increase the rent by as much as they wish and as often as they wish. Try and negotiate rent increases with your landlord if you can. If not, it is often a good time to ask for repairs to be made.

Visitors

Visitors to your home are your business. Overnight guests are also your own business. The exception to this is if you have signed an agreement by which you agree to forgo the right to have visitors in your home. Make sure you know the difference between having a friend stay over and moving a new person in to the house. Exercise your judgement. Also take into account the views of the other tenants. You are entitled to have overnight guests but moving someone in is another thing altogether.

Privacy
You are entitled to privacy and enjoyment of your home. Your landlord is not entitled to enter your home without your permission. Make sure that landlord access is agreed before you move in. If your landlord constantly calls around to your home you are under no obligation to invite him/her in. You are paying rent to enjoy your home in privacy. If the landlord wants to make inspections, the frequency of these inspections should be agreed beforehand. If repairs need to be made to the property, the landlord must also agree with you when they are to be carried out. It is usually in your interest to have repairs carried out as quickly as possible.

If the property is up for sale or if there is to be a re-letting your landlord should let you know viewing times in advance.

If you have difficulties regarding privacy please contact the PRTB.

Remember that as you want peace and quiet in your own home so do your neighbours so keep the noise to an acceptable level.

Notice to Quit

Notice to quit must be in writing and must be served at least four weeks before it is to be effective. Unless you have a lease or written agreement, which states otherwise, your landlord can give you written notice to leave your accommodation at any stage. The minimum notice is never less than four weeks. If the length of tenancy is not specified and you wish to leave your accommodation, you should also give four weeks written notice to the landlord. If you do not, you risk losing part or all of your deposit.

Residential Tenancy Act

1st September 2004 was the "commencement day" for the Residential Tenancies Act. This Act will herald a new era for landlords and tenants in Ireland. The Act provides for reform of residential landlord and tenant law, based on the recommendations of the Commission on the Private Rented Residential Sector. Below you will find a Guide providing a short summary of some of the main elements of the new legislation. It does not cover all the provisions of the Act, but it should be helpful in giving tenants, landlords and their representatives a broad picture of the new legal code. For further information you can contact or access the following:

The Act is available online at:
www.oireachtas.ie * Legislation * Acts: 1997 – 2004 * 2004 * 27
of 2004 (Residential Tenancies Act 2004 – PDF document)

Copies of the Act can be purchased directly from:
Government Publications Sales Office, Sun Alliance House,
Molesworth Street, Dublin 2

Or by mail order from
Government Publications, Trade Section, 51 St. Stephen’s
Green, Dublin 2 Tel: 01 6476834

Further information can be obtained from:
Private Residential Tenancies Board Tel: 01 8882960
Canal House, Canal Road, Ranelagh, Dublin 6.
Email: Tenancies_Board@environ.ie

Tenancy Obligations (part2)

Tenants must:

  • pay the rent and any other specified charges,

  • avoid causing or make good any damage beyond normal wear and tear,

  • notify the landlord of any repair requirements,

  • allow access for repairs to be carried out and by appointment for routine inspections,

  • keep the landlord informed of the identity of the occupants

  • not engage in or allow anti-social behaviour

  • not act, or allow visitors to act in a way that would invalidate the landlord’s insurance,

  • not cause the landlord to be in breach of statutory obligations,

  • not alter, improve, assign, sub-let or change the use of the dwelling without written consent from the landlord.

Landlords must:

  • allow the tenant to enjoy peaceful and exclusive occupation,

  • carry out repairs, subject to tenant liability for damage beyond normal wear and tear

  • insure the dwelling, subject to the insurance being available at a reasonable cost

  • provide a point of contact,

  • promptly refund deposits unless rent is owing or there is damage beyond normal wear and tear or outstanding bills unpaid

  • reimburse tenants for expenditure on repairs that were appropriate to the landlord

  • enforce tenant obligations

  • not penalise tenants for making complaints or taking action to enforce their rights.

These respective obligations must be adhered to whether or not there is a lease or written agreement - landlords and tenants cannot contract out of them. Additional obligations, however, can be included in a lease. If the landlord does not enforce the tenant’s obligations, any other person who is adversely affected as a result can bring a complaint to the Private Residential Tenancies Board (PTRB) about the failure. Prohibited anti-social behaviour includes behaviour that interferes with other people’s peaceful occupation as well as more serious behaviour that causes fear, danger, injury, damage or loss.

Rents

Rent may not be greater than the open market rate and may be reviewed (upward or downward) once a year only unless there has been a substantial change in the nature of the accommodation that warrants a review. Tenants are to be given 28 days notice of new rents. Tenants may ask their landlord to review the rent if they feel it exceeds the market rate for the property - if more than a year has elapsed since the last rent review, tenants may seek a review. Disputes about any aspect of rent may be referred to the PTRB.


Security of Tenure (Part 4)

Security of tenure is based on 4-year cycles from the date Part 4 of the Act comes into force (i.e. 1st September 2004). 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 (known as a "Part 4 tenancy") during the following 3 1 /2 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 occupants accommodation needs

  • 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.

The grounds for recovery of possession listed above are subject to certain procedures to prevent their abuse. At the end of the 4 years, a new tenancy will commence and the cycle begins again on the same basis as outlined above. The following are other key features of Part 4 tenancies:

  • Tenants may opt to continue in occupation after a fixed term tenancy that has lasted 6 months or more expires, but they must notify the landlord of an intention to remain, between one and three months before the fixed term lease is due to expire.

  • Where a tenancy is assigned to a new tenant (i.e. transferred with the landlord’s consent), a new tenancy cycle will commence.

  • Where a tenancy is sub-let (i.e. tenant moves out and becomes landlord to a new sub-tenant with the landlord’s consent), the sub-tenancy will be deemed to have commenced on the same date as the head-tenancy out of which it was created, and the cycle will continue. Further detail relating to sub-tenants is contained in the Schedule to the Act.

  • In the case of multiple occupants, the cycle will run with the earliest tenant and Part 4 protection will, therefore, last less than 4 years for those who join in at a later stage. Multiple occupant tenancies will continue for the full four years so long as there is at least one person who is a tenant of the Part 4 tenancy in occupation (not necessarily one of the original tenants).

  • Licensees (i.e. additional occupants brought in by a resident tenant who are not tenants themselves) may request the landlord to become tenant and the landlord may not unreasonably withhold written consent.

  • The tenant will be free to terminate the tenancy at any time, subject to any fixed term lease or agreement

Tenancy Terminations (Part 5)

Tenancies will be terminated by means of a notice of termination, regardless of why the termination is happening. If the termination is by the landlord and the tenancy has lasted more than 6 months, one of the 6 reasons on the previous page must be cited. Tenants do not need to give a reason for terminating. The notice period to be given depends on the length of the tenancy as follows:
Shorter notice periods apply where termination is for non-compliance with tenancy obligations (7 days for serious anti-social behaviour, 28 days for other breaches) and the parties may also agree a shorter notice period at the time of termination (but not earlier). Longer notice may be given, but not more than 70 days where the tenancy has lasted less than 6 months.

Less than 6 months -28 days
6 or more months but less than 1 year - 35 days
1 year or more but less than 2 years - 42 days
2 years or more but less than 3 years - 56 days
3 years or more but less than 4 years - 56 days
4 or more years 112 days

Where a landlord refuses consent to assign or sub-let a fixed term tenancy, the tenant may terminate the tenancy before the expiry of the fixed term.

Dispute Resolution (Part 6)

Disputes arising between landlords and tenants are generally to be referred to the PRTB instead of the courts. Examples of disputes that will be dealt with by the Board include issues relating to;
deposit refunds, breaches of tenancy obligations, lease terms, termination of tenancies, market rent, rent arrears, complaints by neighbours regarding tenant behaviour, etc.

Either the landlord or tenant can initiate the process. The person who initiated the process will have to pay a fee (to be decided by the PRTB) which will not be expensive. Legal representation should not be necessary as the dispute resolution process will operate informally and is intended to minimise expense and stress for all parties concerned. Cost of legal or other professional representation at PRTB proceedings will not be awarded except in exceptional circumstances as determined by the Board.
The dispute resolution process consists of two stages:

  • Stage 1: Either mediation or adjudication as chosen by the parties and is confidential

  • Stage 2: A public hearing by a three-person Tenancy Tribunal. A mediated agreement or the decision of an adjudicator or of a Tribunal will result in a determination order of the Board. A Tribunal decision may be appealed to the High Court on a point of law only. The enforcement of determination orders of the Board that are not complied with will be through the Circuit Court. The Board may award damages of up to 20,000 and arrears of rent of up to 20,000 or twice the annual rent, whichever is greater (but a maximum of 60,000 applies to rent arrears awards). Cases involving amounts greater than these will have to be taken through the courts. The Board will have power to apply to the courts for injunctive type relief in the case of very serious emergency cases coming before it, e.g. illegal evictions, threat to life, etc .

  • Registration of Tenancies (Part 7)

    Landlords will have to register details of all their tenancies with the PRTB but from the commencement of the new registration system will no longer have to register with local authorities. The Board will use the registration data for its information provision function and for resolving certain types of disputes.

    Registration Procedures

  • In future new tenancies will have to be registered within a month, existing tenancies will have to be registered within 3 months of Part 7 of the Act coming into force (i.e. by the 1st of December 2004).

  • Landlords currently registered with local authorities must re-register with the PRTB giving details required by the Act but will not have to pay a fee.

  • The requirement to register arises only where a new tenancy is created.

  • While a revised rent must be updated in the register within a month of taking, that notification will not require to be accompanied by a fee. Other relevant changes that occur in the details of the registered tenancy need only be notified as part of a rent review update.

  • Tenants must supply landlords with the information they need to complete the registration form, including their Personal Public Service Number. • The registration fee is 70 per unit and a composite fee of 300 is available where a number of units in the one property are being registered at the same time.

  • There are exceptions in certain limited circumstances i.e. 2 fees already paid in respect of the dwelling within the previous year.

  • A double fee applies for late registrations.

  • In a case where a tenancy lasts for 4 years, a new registration application and fee will apply where a further Part 4 tenancy commences immediately afterwards.

  • The fees will keep pace with inflation. Other Registration Functions of the PTRB

  • The PTRB will exchange data on tenancies with local authorities and the Department of Social and Family Affairs and will provide particulars to he Revenue Commissioners as requested.

  • The PTRB will rigorously pursue compliance by landlords with the registration requirement. Failure to do so is an offence and the penalty on conviction is a fine of up to ¤3,000 or up to 6 months imprisonment or both.

  • Landlords must be registered in order to avail of the PRTB dispute resolution service.

  • Tenants will have access to the service irrespective of whether or no the tenancy is registered.

  • When registered, the PTRB will issue the landlord and tenants with a registration number.

  • An extract from the register will be available to the public. It will not contain information that would disclose the identity of the landlord or tenant or the rent.