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Landlords – New Notice Periods to be Aware of

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Although this June weather may not be what we had all expected, something you can always rely on us here at EcovisDCA to continue to bring you information which is vital to your business and financial lifestyle. This week we will be continuing in our series of posts detailing the new changes to rental legislation recently announced and put into place. Legislation can often be a bit of a minefield and with so many changes to the rental sector, we want to ensure that our clients and friends are well informed. This week we will be focusing on the new notice periods which have been put in place for landlords as well as the new introduction of remedial notices.

As of June 4th, 2019, the notice periods that a landlord must provide to a tenant when serving a notice of termination have been extended. It is vital that all landlords, regardless of their experience levels or how long they have been renting should keep a record of the below and familiarise themselves with these new requirements as any failure to serve the correct notice can result in the notice being rendered invalid. Changes can be agreed between both tenant and landlord, but this can only be done once the official termination letter with the appropriate notice period has been served. Below is a list of the new notice period requirements which will now be dependent on the length of time the tenant has been renting the property.

Tenancy Duration:                                                               Notice Period:

Less than 6 Months                                                                28 Days

Between 6 Months and 1 Year                                               90 Days

Between 1 and 3 Years                                                           120 Days

Between 3 and 7 Years                                                           180 Days

Between 7 and 8 Years                                                           196 Days

8 Years or More                                                                      224 Days

It is advisable that Landlords keep a printed record of these new notice periods and make themselves aware of these changes to avoid any issues going forward.

Another major change in terms of termination notices is the introduction of remedial notices. As of June 4th, 2019. This notice has been introduced to assist both landlord and tenant as an original notice served to fix the defect identified by the Tribunal can now be remedied by the issuing of a new remedial notice. Following a case lodged with the RTB, if deemed acceptable by the decision maker, either the tenant or landlord may have 28 days in which to serve a remedial notice. If the correct notice period was given, 28 days additionally may be served under the remedial notice, whilst if the incorrect period was given the new notice period will be 28 days in addition to the number of days the given notice period was short.

We hope that this series of posts is of assistance to you. As always, should you have any concerns of queries on any financial or business matters, please don’t hesitate to contact us here at EcovisDCA where we are always happy to assist.

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY

RENTAL CHAOS

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With all the rises and falls in the cost of living, and in particular house prices in recent years, it is no surprise that attention consistently turns towards rental costs. Recently, it was announced that there would be an overhauling of the rules on renting in The Residential Tenancies Amendment Bill. These new measures are designed to give tenants as well as landlords a greater degree of security about their immediate futures. The rental sector has been an increasingly volatile and unstable one for a number of years and it is hoped that these measures will bring some stability.

 

Alan Kelly, Minister for the Environment, Community and Local Government announced a series of reforms to the private rental sector in Ireland this month. The main change here will be that the rent review period is to be increased from one to two years, this provides tenants with more security in terms of rent increases as rent cannot increase each year. As a result, anyone who has had their rent increased in 2015 will not have another rent review until 2017.

 

Minister Kelly was quoted on these changes as saying:

“Long-term renting will become an option for more and more people and the regulatory environment has to catch up with this. People in rented accommodation need greater security and these measures will provide that.”

 

As well as the change in the rental review period, landlords will be required to notify tenants if their rent is due for review, which Minister Kelly has said will again provide more security to the sector.

“Now that there will be a legal obligation on landlords to notify tenants as to how to dispute excessive rent increases, tenants will now be more empowered and landlords have a disincentive to aim for the highest rent possible – as they could face a dispute which will delay their rents.”

 

There have been reports of landlords increasing their rents in the months before these measures are brought into effect, reports which have been corroborated by studies which show the steepest rent increases since the financial downturn in the three months prior.

 

Another new rule announced as part of this bill is a deposit protection scheme wherein deposits are lodged with the Private Residential Tenancies Board as opposed to the landlord themselves. Landlords will also be required to provide greater evidence that their proposed increases are in line with local market rates. There will also be greater protection for the termination of tenancy with landlords being required to provide a statutory declaration if they intend to terminate a tenancy in order to allow a family member use the property.

 

Whilst these new measures have been met with some hesitation from landlords, there are also some measures announced which are designed to protect the landlords themselves. New procedures will see that rent arrears and terminations will be dealt with in the District Court as opposed to the costly proceeding in the Circuit Court. Finally, landlords who rent to those receiving rent allowance etc. will now be permitted to avail of 100% mortgage interest relief on their borrowings once they commit to accommodating tenants availing of relief for a minimum of three years.

 

If you are a tenant or landlord and are unsure of where you stand financially in the coming months, please don’t hesitate to contact us here at DCA Accountants where we will be delighted to assist you.

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY