Confused about part IV tenancy

finny

Registered User
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79
Hi,

I'm not sure what my rights are. I'm a landlord of an apartment with a lease in place as follows:
  • dated May 2015
  • 8 month lease with 6 month break clause
  • two tenants
  • one rent amount
  • Tenant 1 is on her second part iv
  • Tenant 2 moved in May 2015 and is on her first part iv
No lease was put in place when it expired in December 2015 but I increased the rent to market in January 2016. The apartment is now rented out at 500euro below market rent.

Tenant 1 has written to "terminate" her tenancy in one month and is asking about her deposit.

The law seems unclear here. Is it Tenant 2's responsibility to find a replacement? I understand that would be the case of she assigns. Is it correct that if she assigns, then the new tenant starts a new part iv cycle. In which case, can I increase the rent for that tenant to market?

If I do this, does the 2 year clock start ticking for that person and then I can review the rent for existing Tenant 2 in January 2017. This seems messy - to have two tenancies in one apartment..I'd rather one lease.
 
Under Part 4 tenancy laws, it is very clear; a tenant only has to give the correct amount of notice to vacate. Therefore, it is your responsibility to find a replacement tenant. It is only where there is a fixed term lease in vigour that a tenant vacating may assign the remainder of the lease (all at the tenant's expense).

You need to check the notice periods for the vacating tenant as I am unsure how long she has been in the apartment. However, by doing this you may be making a mountain out of a molehill.

By having an assignment, even with a Part 4 tenancy, you do not start a new tenancy and therefore do not have to pay another RTB registration fee - you just notify them of a change of tenant.

Any new tenant does not acquire Part 4 rights until they have been in the property for 6 months. You could start the new tenant on a Periodic tenancy which gives you the option of evicting him/her should it not work out. Then after the 6 months, the tenant acquires Part 4 rights. However, if there is an assignment, this is not possible.

However, you could also rent out the apartment on a room by room basis which would allow you to increase the rent (remembering that you would have to pay a new RTB registration fee). Many landlords find that this way, they can get more for a room by room rental than for renting an entire property.

This is not legal advice but my opinion and understanding of the law.
 
Last edited:
Thanks Facetious! I called the PRTB and they gave the same advice. I've decided to rent on a room by room basis. Messy, but ultimately better financially. She gave me less than half the notice she should have but I'm not going to make an issue unless I'm at a financial loss. Cheers.
 
Yes, although renting on a room by room basis involves more work the extra rent should make it worth while. Obviously with a new tenancy, you can increase the rent to the market rate immediately.

Hope it all works out for you.
 
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