# Tenant breaking lease early



## firsttimer (24 Mar 2011)

Hi, need some advice here please from landlords in the know. I have my house rented out with an agency. It's a fixed 1 year lease with no break clause and due to end in August. I find out today that the tenant is planning on leaving next week the 31st. So she's given 10 days notice. She called into the agency on Monday. Now they are advertising it but I do not want to enter another 1 year lease. I have had so much trouble for the past 7 months with this tenant and the agency itself, it has caused me sleepless nights. 

I only found out as the property is back up on daft - the agency didn't bother to ring me.

I want to tell the letting agency that I am not going to use them and will look after the property myself. I take it this is ok and my right to do so.

Now my question lies in regard the deposit. The letting agency have told me she is breaking her lease and will not get it back. Is this correct? If the tenant sublets it for the remaining term of the lease am I right in thinking they can then get it back. However I will only agree to this for 5 more months until the end of the original lease. If she cant get someone & I can't relet straight away am I right in thinking I can hold the deposit due to loss of rent? 

So many things going round my head, don't want to do anything that's not legal. It is registered with PRTB also.

Thanks for reading


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## Mrs Vimes (24 Mar 2011)

Hi there,

Sounds to me like the tenant has instructed the agency to find a replacement to take over the rest of her lease, which she is entitled to do.  You should contact the agency and clarify that this is the case. It would then be for the replacement tenant to pay the leaving tenant her deposit back and you would then be holding the deposit for the replacement tenant.

Really, under PRTB rules, nothing to do with you at all except to ensure that you are informed of the new tenant's details.

If on the other hand the agency expects to be paid by you, you can indeed tell them not to act and that you will sort it out yourself.

I would suggest a letter to the agency stating that you have not instructed them in any way and will not be liable for any fees in this regard.

No-one can make you sign up to a fresh 1 year lease.

I don't know whether the new tenants inherit the old tenants tenancy for the purpose of creating a part 4 tenancy or whether the period resets, you should contact PRTB for clarity on this issue.

Sybil


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## elcato (24 Mar 2011)

Who have you got a contract with ? Did you sign a lease with the tenant and you as a landlord ? I suspect you did. In that case you paid a fee at the start for the agent to get a tenant for one year. If that doesn't happen it's up to the agent to get someone in or pay you any loss. The tenant is breaking the lease, they forfeit the deposit BUT quite often the LL loses if the tenant tries to pursue a refund. Some points are not clear from your post which yiou may perhaps qualify.


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## twofor1 (25 Mar 2011)

firsttimer said:


> Now my question lies in regard the deposit. The letting agency have told me she is breaking her lease and will not get it back. Is this correct? If the tenant sublets it for the remaining term of the lease am I right in thinking they can then get it back. However I will only agree to this for 5 more months until the end of the original lease. If she cant get someone & I can't relet straight away am I right in thinking I can hold the deposit due to loss of rent?


 
Your tenant is breaking the fixed term lease 5 months early, you are entitled to keep the deposit.

Your tenant would also be liable for the remaining 5 months rent if you made all reasonable efforts but were unable to let, though whether this is worth chasing is another matter.

Section 186 would only apply if the tenant asked you in writing for permission to sublet, you refused, and the tenant then gave 35 days’ notice, none of which appear to have happened in this case.

Neither your tenant or letting agent can sublet without your written consent.


''A tenant can also avail of section 186 of the Residential Tenancies Act to end a fixed term lease where the landlord refuses their wish to assign the lease to somebody else. 
If a tenant wants to end of fixed-term tenancy early, they should inform the landlord in writing of their wish to assign or sublet the lease. Where the landlord refuses to give his or her consent, the tenant is entitled to serve a Notice of Termination.
The length of notice is determined by duration of the tenancy (see the Table above) and the Notice should correspond to the example Notice of Termination provided above.
The tenant is entitled to the return of their deposit if they take these steps.''

http://www.threshold.ie/page.asp?menu=70&page=240


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## Bronte (25 Mar 2011)

firsttimer said:


> I have had so much trouble for the past 7 months with this tenant and the agency itself


 
Sounds like you need to rent the property yourself.


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## firsttimer (25 Mar 2011)

Yeah that's what I'm going to do. Want to make sure that everything is in order in the house before I tell the letting agency I'm giving them the boot. Regards final bills, esb etc I suppose I will just get the name changed asap and at least the deposit will cover anything due. Thanks for your input guys.


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## elcato (25 Mar 2011)

Don't forget to tell the agent he owes you the cost incurred at the start for getting a tenant for a one years lease. At worst this will stop them claiming you owe them five months fees.


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## twofor1 (25 Mar 2011)

elcato said:


> Don't forget to tell the agent he owes you the cost incurred at the start for getting a tenant for a one years lease.


 
I don’t believe the letting agent owes anything as a result of this tenant leaving early.

Any letting agent I ever dealt with, showed the property, found a suitable tenant, got and checked references, got a signed lease in place between landlord and tenant, took meter readings, collected the deposit and first months rent from which they took their fee and passed on the balance to landlord, handed over keys and that was the end of their obligations.

As the lease was between landlord and tenant, If the tenant decides to leave before the end of the fixed term lease then it is the landlord’s problem not the letting agents, and up to the landlord to decide if they wish to withhold the deposit and pursue the rent from the tenant for the remainder of the lease, if unable to re let.

I would have thought this is standard for all letting agents.


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## firsttimer (25 Mar 2011)

I'm paying them a monthly fee to manage the propery. I have no dealings with the tenant directly.


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## joanod (25 Mar 2011)

If that is the case why is your head bothered or troubled - if you have a property that is in good order there should be no problem.

At the end of the day once the property is rented you get your money I assume it is being kept in order what do you care who is renting it?

As for bills when they are gone - that is the tenants business not yours, once they are not in your name - ........

If you are paying an agent to look after it for you and you are all upset - you either need to relax yourself, it will all be fine - or else you really do have reason to worry because the agent is not doing their job in that case get a new agent........

Once you get your rent each month you have a deposit - your property is bring looked after - what is the problem?

J


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## elcato (25 Mar 2011)

> I don’t believe the letting agent owes anything as a result of this tenant leaving early.
> 
> Any letting agent I ever dealt with,  showed the property, found a suitable tenant, got and checked  references, got a signed lease in place between landlord and tenant,  took meter readings, collected the deposit and first months rent from  which they took their fee and passed on the balance to landlord, handed  over keys and that was the end of their obligations.
> 
> ...


So by your reckoning an agent can charge  either 5% of annual rent or one month rent for getting a tenant in place. If the tenant leaves after one month that makes no sense at all. I have dealt with both a full time agent and an agent to get me a tenant and in both cases it was made clear by both parties that a one year lease is at best the minimum requirement. Any agent worth their salt would agree to this as they are not in the business of getting bad tenants as they would soon be out of business. I would consider not asking for a refund from the agent in the case where I had a deposit up front and the tenant was paid up if they were solely acting as a letting agent.


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## AlbacoreA (25 Mar 2011)

It would depend on your contract with the agency. Also their contract with the tenant. I expect theres none. 

If it were me, I'd just cancel the contract with the agency and let the tenant go if theres no problem, and return the deposit.

Then re-rent it yourself.


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## twofor1 (25 Mar 2011)

elcato said:


> So by your reckoning an agent can charge either 5% of annual rent or one month rent for getting a tenant in place. If the tenant leaves after one month that makes no sense at all. I have dealt with both a full time agent and an agent to get me a tenant and in both cases it was made clear by both parties that a one year lease is at best the minimum requirement. Any agent worth their salt would agree to this as they are not in the business of getting bad tenants as they would soon be out of business. I would consider not asking for a refund from the agent in the case where I had a deposit up front and the tenant was paid up if they were solely acting as a letting agent.


 
That has been my experience. The letting agent would have done his job and been paid his fee. 

The best of tenant’s for various reasons may have to leave a fixed term tenancy early, it is not the letting agents fault.

In the case where a tenant left very early, it would be a poor letting agent who did not at least compromise in some way on the fee for finding a replacement tenant.

 As the agent would have done no wrong, I think it would be unreasonable for the landlord to expect a refund.


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