# Tenant wants 3 or 4 year lease ... is this advisable?



## bk777 (29 Nov 2010)

I have recently found a tenants for my rental property and they say that they want a long term lease maybe 3 or 4 years. Is it ok to sign them up long term or does that mean it will be very difficult for me to break it should things change?


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## twofor1 (29 Nov 2010)

I would be very pleased to find tenants who wanted to stay for 3 or 4 years. 

Anyway after 6 months they are entitled to stay for a further 3.5 years with some exceptions.

*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 31/2 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 (e.g. overcrowded)
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:

http://public.prtb.ie/DownloadDocs/Residential%20Tenancies%20Act%202004%20-%20A%20Quick%20Guide.doc


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## pudds (29 Nov 2010)

Think I would give them an annual lease which can be renewed annually for up to 4yrs years subject to both parties being happy with things.


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## bk777 (30 Nov 2010)

thanks a million for the responses. twofor1 and pudds. I think I like the idea of a 3 year lease and as per twofor1 it looks like you do have ways to get out of it if there are problems.


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## Berni (30 Nov 2010)

The ways out listed by twofor1 apply to a Part 4 tenancy. If you sign a fixed term lease for 3 years, then these do not apply. 
You could only remove the tenant for not complying with the lease, eg non payment of rent.

You would need to write a separate break clause into the lease, making sure it suits both parties.


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## twofor1 (30 Nov 2010)

True, Part 4 Tenancy rules would only apply after the 3 year fixed term lease.

If not comfortable with a 3 year fixed term lease it might be a better option to give a I year lease, and inform the potential tenants of their rights to remain for a further 3 years under Part 4 Tenancy rules, this might give them the security they want and gives the landlord more options.

With this option though, they can leave after the 1 year fixed term lease ends, or at any stage during the following 3 years once they give the appropriate notice.

From what I can see, putting a break clause in the lease affords greater rights to the tenants, but not the landlord, as if the landlord wanted to use this clause, the tenants would still be entitled to avail of Part 4 and remain for the 4 year period.

Under Break Clauses here;

http://public.prtb.ie/DownloadDocs/Termination%20of%20FT.doc


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