08.01.15 - Examiner Article - Tenant fails to Pay Rent

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Farming LEGAL ADVICE THURSDAY, JANUARY 8. 2015 First in our new weekly legal advice articles by solicitor Karen Walsh Step carefully and get advice if a tenant has failed to pay rent I am renting a small cottage on my farm to a tenant for over a year, and in the past few months, the tenant has not paid m* any rent What are my regal options? » Under the Residential Tenancies Act, 2004, tenants are required to pay tlvair rent when it falls due: and their tenancy may be terminated for non-payment of rent. Where a landlord seeks to terminate a tenancy of duration longer than six months (known as a Part IV tenancy), because the tenant has failed to pay rent, the following three-step procedure must be followed: (1) Give the tenant notice that they have breached their obligation to pay rent. This should be done in writing. (2) Serve a 14-day warning notice for failure to pay rent. (3) Serve a 28-day notice of termination of the tenancy. Step 1: Notice of Breach of Obligation The landlord must notify that: (i) the tenant is in arrears of rent, (ii) the tenant is allowed a reasonable time to remedy that breach of obligation, (iii) the landlord is entitled to terminate the tenancy if the tenant fails to remedy that breach of obligation within the period specified. The first notification does not need to be in writing, and a landlord can give a tenant ver- bal notice of the rent arrears, but must ensure that the ten- ant is aware that failure to pay the rent arrears within a rea- sonable time will result in the landlord terminating th<; tenancy. As a landlord may- need to give evidence that this has been communicatedto the tenant, it may be prudent to ,"••> f his notice in writing. Step 2:14-day Warning Notice for Failure to Pay Rent Where a tenant falls into - ir.< landlord must serve a written notice on the tenant informing him 01'].= rut thenmnunt >if rent that is due. The landlord v.-;li then give the ; ay thusy n :"it -ij'ie;ir- Step 3:28 day Notice of Termination of the Tenancy If the tenant fails to pay the rent d'vic within 14 d receipt • I •;.';;(>• ai Step 2 afrjve, the landlord may M '•• e *he ttm- Karen Walsh comes from a fanning background at Grenagh, Co Coit, and is a solicitor practicing in CW Ashe & Co Soiidtof s in Macroom, Co Celt. V While every care is taken to ensure accuracy of information in this article, solicitor Karen Walsh does not accept responsibility for errors or omissions, howsoever arising, and you should seek legal advice in relation to your particular circumstances at the earliest possible time. ancy by serving a 28-day notice of termination. Registered landlords should apply to the Private Residen- tial Tenancies Board (PRTB) for dispute resolution, in cases where the tenant fails to vacate the rental dwelling after the expiry of valid notices of rent arrears and termination. The PRTB will prioritise such cases for an adjudication hearing, and will make an enforceable determination order requiring the tenant to vacate the property, if validly served notices have expired. The landlord or other agents must never remove a tenant or their property from a rental dwelling themselves or interfere with their util- ities, such as electricity or water supply, as this will be treated as an unlawful termi- nation of tenancy, with poten- tial awards of damages in favour of the tenant. Tht- Act specifies the pre- cise format for such notices, and PRTB adjudicators will only uphold the validity of notices that are in the correct Registered landlords should apply to the Private Residential Tenancies Board (PRTB) for dispute resolution^*) format. It is essential that all notices are valid. It is essential that you give adequate notice periods, and that they are in the prescribed format. The notices are quite technical, and you should seek profes- sional advice. It is important that land- lords take the following steps prior to referring a Dispute Application to the PRTB, to avoid delays in processing their case. 1. Obtain tenant details at commencement of the tenan- cy: it is vital that landlords seek to obtain the tenant's PPS number, contact details and other information, such as work details, at the commencement of a tenancy. 2. Register your tenancy: landlords cannot take a case to the PRTB unless they have fulfilled their legal require- ment to first register their tenancy. 3. Contact the community officer; if a tenant is in receipt of rent supplement, but is not passing on the rent, or has cancelled direct payments to the landlord's account, the landlord should immediately inform the local Community Welfare Officer, to prevent the possibility of misappropri- ation of funds. 4. Maintain detailed it is important that landlord? provide sufficient documentary tvjdence to a PRTB adjudicator, to support their rent arrears case sm:b as rent book, bank statements. Ev.-n when the PRTB reach- •- .1 •:- v-rminati.-in. the orier .''•reed rhr.'Ugh itC .11* A i;tmll.'.nl ran do r.othine -.it;r;i <;;;- prnce-v-- h;is been 1 -i and. in the nie^n- t;ir.'-, ^ (is iH"d ;" ':"ss I . and incurs or.yuiriK •. ; v, -'-, f' ' Tenants are required to paytheir rent when it falls due, and their tenancy may be terminated for non-payment of rent. FARM TAX SPECIALISTS Local Service - National Back-up 23 Branches Nationwide Succession Planning Annual income tax planning Limited company planning & set-up College grant applications Financial accounts On-«ite book-keeping service* Loan applications & bank negotiations Pre-year end tax projection & advice Management accounts & profit monitor Revenue audit support Tax planning Including farm transfers Specialist back-up services Free Consultation Contact - 18OO334422 www.ffac.I*

Transcript of 08.01.15 - Examiner Article - Tenant fails to Pay Rent

Page 1: 08.01.15 - Examiner Article - Tenant fails to Pay Rent

Farming LEGAL ADVICE THURSDAY, JANUARY 8. 2015

• First in our new weekly legal advice articles by solicitor Karen Walsh

Step carefullyand get advice ifa tenant hasfailed to pay rent• I am renting a small cottage onmy farm to a tenant for over ayear, and in the past few months,the tenant has not paid m* anyrent What are my regal options?» Under the ResidentialTenancies Act, 2004, tenantsare required to pay tlvair rentwhen it falls due: and theirtenancy may be terminatedfor non-payment of rent.

Where a landlord seeks tot e r m i n a t e a t e n a n c y ofdura t ion longer t h a n s ixmonths (known as a Part IVtenancy), because the tenanthas failed to pay rent, thefo l lowing three-stepprocedure must be followed:

(1) Give the tenant noticethat they have breached theirobligation to pay rent.

This should be done inwriting.

(2) Serve a 14-day warningnotice for failure to pay rent.

(3) Serve a 28-day notice oftermination of the tenancy.

Step 1: Notice of Breach ofObligation

The landlord must notifythat:

(i) the tenant is in arrears ofrent,

(ii) the tenant is allowed areasonable time to remedythat breach of obligation,

(iii) the landlord is entitledto terminate the tenancy if thetenant fails to remedy thatbreach of obligation withinthe period specified.

The first notification doesnot need to be in writing, and alandlord can give a tenant ver-bal notice of the rent arrears,but must ensure that the ten-ant is aware that failure to paythe rent arrears within a rea-sonable time will result in thelandlord t e r m i n a t i n g t h < ;tenancy. As a landlord may-need to give evidence that thishas been communicated to thet e n a n t , it may be prudent to,"••> fhis notice in writing.

Step 2:14-day WarningNotice for Failure to Pay Rent

Where a tenant falls into- i r . < landlord mus t

serve a written notice on thetenant informing him 0 1 ' ] . = r u tthenmnunt > i f rent that is due.The landlord v.-;li then give the

; ay thusyn :"it -i j ' ie;ir-

Step 3:28 day Notice ofTermination of the Tenancy

If the tenant fails to pay therent d'vic w i t h i n 14 dreceipt • I • ; . ' ; ; (>• aiStep 2 afrjve, the landlord may• • • M '•• e *he ttm-

Karen Walsh comes from a fanningbackground at Grenagh, Co Coit, andis a solicitor practicing in CW Ashe &Co Soiidtof s in Macroom, Co Celt.

VWhile every care is taken to ensure accuracy ofinformation in this article, solicitor Karen Walsh does not acceptresponsibility for errors or omissions, howsoever arising, andyou should seek legal advice in relation to your particularcircumstances at the earliest possible time.

ancy by serving a 28-daynotice of termination.

Registered landlords shouldapply to the Private Residen-tial Tenancies Board (PRTB)for dispute resolution, in caseswhere the t enan t fai ls tovacate the rental dwellingaf ter the expiry of val idnotices of rent arrears andtermination.

The PRTB will prioritisesuch cases for an adjudicationhearing, and will make anenforceable determinationorder requiring the tenant tovacate the property, if validlyserved notices have expired.

The l and lo rd or otheragents must never remove atenant or their property froma rental dwelling themselvesor interfere with their util-ities, such as electricity orwater supply, as this will betreated as an unlawful termi-nation of tenancy, with poten-t ia l awards of damages infavour of the tenant.

Tht- Act specifies the pre-cise format for such notices,and PRTB adjudicators willonly uphold the validity ofnotices that are in the correct

• Registeredlandlords shouldapply to thePrivateResidentialTenancies Board(PRTB) fordisputeresolution^*)

format. It is essential that allnotices are valid. It is essentialthat you give adequate noticeperiods, and that they are inthe prescribed format. Thenotices are quite technical,and you should seek profes-sional advice.

It is important that land-lords take the following stepsprior to referring a DisputeApplication to the PRTB, toavoid delays in processingtheir case.

1. Obtain tenant details atcommencement of the tenan-cy: it is vital that landlordsseek to obtain the tenant'sPPS number, contact detailsand other information, suchas work detai ls , at thecommencement of a tenancy.

2. Register your tenancy:landlords cannot take a caseto the PRTB unless they havefulf i l led their legal require-ment to first register theirtenancy.

3. Contact the communityofficer; if a tenant is in receiptof rent supplement, but is notpassing on the rent, or hascancelled direct payments tothe landlord's account, thelandlord should immediatelyinform the local CommunityWelfare Officer, to prevent thepossibility of misappropri-ation of funds.

4 . M a i n t a i n de ta i l edit is important that

landlord? provide sufficientdocumentary tvjdence to aPRTB adjudicator, to supporttheir rent arrears case sm:bas rent book, bank statements.

Ev.-n when the PRTB reach-• •- .1 •:- v-rminati.-in. the orier

. ' ' • reed rhr.'UghitC .11*

A i;tmll. ' .nl ran do r.othine- . i t ; r ; i < ; ; ; - prnce-v-- h;is been

1 -i and. in the nie^n-t;ir.'-, ^ (is iH"d ;" ':"ss I

. and incurs or.yuiriK• . ; v, - ' - , f ' '

Tenants are required to pay their rent when it falls due, and their tenancy may be terminated fornon-payment of rent.

FARM TAX SPECIALISTSLocal Service - National Back-up

23 Branches Nationwide

Succession Planning

Annual income tax planning

Limited company planning & set-up

College grant applications

Financial accounts

On-«ite book-keeping service*

Loan applications & bank negotiations

Pre-year end tax projection & advice

Management accounts & profit monitor

Revenue audit support

Tax planning • Including farm transfers

Specialist back-up services

Free Consultation Contact - 18OO 334422www.ffac.I*