The New Residential Tenancies Act has a Significant Impact for Landlords

The Residential Tenancies (Amendment) Act, 2019 (“the 2019 Act”) became effective from the 4 June 2019.

Termination Obligation and Procedures.

The 2019 Act, imposes significant new termination obligations and procedures on landlords, including:

• If a landlord intends to terminate a residential tenancy, in existence for over 6 month’s duration, they must send a signed Termination Return to the Residential Tenancies Board (RTB) within 28 days of the Termination Date (i.e. after the expiration of the Notice Period).

The rules relating to the circumstances giving rise to a right of the landlord to terminate the tenancy have also changed:

• If the tenancy is being terminated to allow for the landlord (or a family member) to reside in the property, the Termination Notice must be accompanied by a Statutory Declaration (this has not changed). If, however, the property becomes vacant again within one year (extended from the previous requirement of 6 months) of the service of the Termination Notice, the property must be re-offered to the tenant.
• If the landlord is terminating the tenancy with a view to selling the property, the time period to allow a landlord to enter a Contract for Sale is extended to 9 months (from 3). If, however, the property is not sold within that period, the property must be re-offered to the tenant.
• If the landlord wishes to terminate the tenancy on the basis of the desire to carry out a substantial refurbishment to the property, the Notice of Termination served on the tenant must identify:-

1. If planning permission is required;
2. The name of the contractor being engaged;
3. The duration of the works;
4. The commencement date of the works;
5. An architect’s certificate confirming that, for health and safety reasons the tenant is obliged to vacate the property for a minimum of three weeks

If that property subsequently becomes available for letting after the refurbishment is completed, it must be re-offered to the tenant and there is no time limit applicable to this obligation (i.e. if it becomes available at any time in the future – this was extended from the previous time period of 6 months).

• If the landlord wishes to terminate on the basis of an intended change of use of the property, the Notice of Termination served should be accompanied by a formal statement by the landlord including:-

1. Information in respect of the intended use;
2. A copy of the planning permission, if applicable;
3. Information in respect of the intended works to be completed;
4. Information in respect of the anticipated duration of the works; and
5. Information in respect of any contractor engaged

If that property subsequently becomes available for letting after the Termination Date, within a period of 12 months (up from 6 months), it must be re-offered to the tenant.

Notice Periods

With effect from the 4 June 2019 there are new longer Notice Periods which must be allowed to tenants, they being:-

Registration Requirement 

The 2019 Act introduces a new annual registration requirement, whereby not only will landlord’s be required to register the tenancy with the RTB at the tenancy commencement date, but they will also be obliged to re-register the tenancy annually thereafter for the duration of the tenancy.

This requirement has not yet been implemented but is expected to commence in early 2020.

Rent Pressure Zones

The 2019 Act provides that the existing Rent Pressure Zones (RPZ) will be extended up until 2021 and a list of the RPZ’s can be found on the RTB website.

The 2019 Act did impose certain exemptions for previously un-let properties, however, it also introduced a new suite of RPZ criminal offences. It is now a criminal offence for a landlord to:-

1. Fail to comply with the RPZ rent restrictions.
2. Fail to comply with the notice requirements as referred to above.
3. Fail to comply with a notice from the RTB to update information on the RTB register.
4. To knowingly or recklessly providing materially false or misleading information to the RTB in connection with a notice of reliance on exemption from the RPZ rent restrictions.

Amongst other things, in relation to RPZs, the 2019 Act introduces new notice requirements and extends the period on the restriction of rent reviews to every two years, up to the end of 2021.

Landlords should be aware of these changes and all other changes brought about by the 2019 Act.

If you wish to discuss the provisions of the 2019 Act, and its potential implications to you, please contact Sally Alford or Keith McConnell of our Property Department.